Berlin based invoice financing company Bezahlt has secured €3.5m in venture funding from Fly Ventures, German Startups Group, La Famiglia Investments and multiple private investors. Bezahlt is specifically targeting the self-employed and freelancers — the “WeWork generation” — and small and medium enterprises (SMEs) who, it claims, have yet to benefit from the advantages of invoice factoring that many corporate players take for granted.
“The problem we are trying to solve is to provide freelancers, small companies and startups with fast, easy and cheap [factoring],” says Diemer, Bezahlt’s co-founder and CEO. “This customer group is ignored by banks and other financial institutions that offer factoring services that have largely been directed almost exclusively at large corporates and companies with minimum sales of 100,000 Euros”. It plans to do this with better scoring technology, thus taking a page out of the Kreditech playbook, and accepting invoices from as little as 1 Euro. There is also no minimum sales volume and no bank history necessary, whilst still resulting in a success rate of about 70 per cent, apparently. The first invoice is free after which the startup charges a 2.3 to 3.3 per cent monthly fee on the amount invoiced.