The goal of the BankiFi platform is to make capital more accessible to small enterprises that might not otherwise be able to qualify for traditional high street banks. Praetura will provide asset and invoice finance to SMEs on behalf of banks unable to serve those enterprises, supported by BankiFi's technology platform.

Asset and invoice finance is not offered by many banks, and when it is, it usually targets larger companies that are more likely to fit their lending requirements.

With Praetura taking on the risk of the initial investment, BankiFi and Praetura's innovative solution aims to enable traditional lenders to meet the varied financing needs of small businesses in the UK. After that, banks are positioned as the preferred source of financing, and once a business meets the requirements, it is directed back to the bank.

Smaller banks or alternative lenders, as opposed to conventional high street banks, have accounted for all net growth in UK SME lending since 2017, according to the Bank of England. According to Praetura's Fund the Gap research, which polled over 400 UK SMEs in 2023, 59% of UK businesses believe they have had less access to capital over the past five years, and 43% say this is one of their major issues.

assisting SMEs in a trying period
Taking this into consideration, it is evident that the UK's financing markets are becoming less accessible, which puts many SMEs in a challenging position and prevents them from expanding.

"We've built great relationships with high street banks due to our bank-friendly distribution model and our ability to leverage the benefits of open banking," said Mark Hartley, CEO and founder of BankiFi, outlining the rationale behind the alliance.

"Our collaboration with Praetura is a logical progression of our current SME payment solutions, which have been centered on cutting down on the amount of time SMEs spend collecting payments and assisting them in managing cash flow, expansion, and financing access.

"Many firms turn to their bank first when they need financing. The issue is that they frequently don't fit the bank's requirements for qualifying. In these situations, individuals frequently slip between the gaps and go untreated if they are unable to obtain a loan. Our collaboration with Praetura allows us to provide a solution that banks and enterprises require.

"Nobody in the UK has the combined senior funding lines, specialized lending expertise, and technological capability to help fund this gap for SMEs in the market," stated Peadar O'Reilly, CEO of Praetura Lending.

"This special partnership shows a commitment to innovation, collaboration, and meeting the diverse needs of businesses, signaling a new era for SME lending."

Since September 2021, BankiFi has been supported by Praetura Ventures. With this new agreement, BankiFi is even more committed to closing the loop and offering a solution that meets SME demand.