Swiss SME lender TP24 secures £345m debt funding from Barclays, M&G
Swiss SME lender TP24 has secured £345 million in debt funding from Barclays and M&G Investments.
Of the total funding, £240 million will be used to lend to small and medium-sized enterprises (SMEs) in the UK and Netherlands, with Barclays providing up to £200 million of it in warehouse financing, and M&G shelling out up to £40 million in mezzanine funding.
Barclays has also offered up to an additional £105 million to TP24, specifically to lend to businesses in Australia.
Founded in 2016 and headquartered in Zurich, TP24 launched two years later to offer revolving business credit to SMEs based on their outstanding invoices, without taking over the debtor base. It has since expanded to Australia in 2019, the UK in 2021 and Netherlands last year.
The company, which is privately held, counts Credit Suisse, SIX Group and Berliner Volksbank Ventures as its main shareholders.
“With the committed capital from Barclays and M&G, we can really make a difference for UK SMEs,” says Niels Turfboer, managing director of TP24 in the UK and Netherlands.
He adds that SMEs across the UK face “unprecedented challenges” ranging from cost-of-living crisis to high interest rates, impacting cash flow.
“TP24 has created a valuable service that can help overcome these pressures by providing the capital that companies need to manage their operation costs and to scale up successfully,” Turfboer says.