Liberis Launches Embedded Finance Platform for Small Businesses in Canada

London-based embedded finance platform, Liberis, is making its debut in the Canadian market to empower small businesses with accessible financing solutions. Liberis’ expansion into Canada comes after it recently secured substantial debt financing and partnered with Vagaro Capital, providing a significant boost to its growth prospects. The company aims to offer flexible and transparent financing to small and medium-sized enterprises (SMEs) in Canada, helping them navigate the challenging economic landscape.

Partnership with Vagaro Capital

As part of its Canadian expansion strategy, Liberis has formed a strategic partnership with Vagaro Capital. Through this collaboration, Vagaro Capital will enable SMBs to access up to $150,000 in financing, with payments structured as a percentage of revenue. This unique approach to financing allows businesses to align their loan repayments with their cash flow, reducing the financial burden during uncertain times. Vagaro Capital’s offering provides business owners with the financial stability needed to grow and thrive in the competitive market.

Canadian expansion

Liberis’ entry into the Canadian market marks a significant milestone for the company’s global expansion plans. The partnership with Vagaro paves the way for Liberis to serve the funding needs of Canadian small businesses seamlessly. As the company expands its operations in Canada, Liberis aims to offer innovative financing solutions that address the specific needs and challenges faced by Canadian SMBs. By tailoring its services to local market requirements, Liberis aims to establish itself as a reliable and trusted partner for small business owners across the country.

Vagaro Capital’s Offering

Vagaro Capital, backed by its alliance with Liberis, now provides fixed-cost financing options to small business owners in the United States, the United Kingdom, and Canada. The collaboration enables Vagaro Capital to extend its reach and support businesses globally. Through their partnership, businesses can receive capital injections of up to $150,000, providing a much-needed boost to their working capital. The repayment structure, based on a percentage of revenue, ensures that businesses can manage their cash flow effectively while repaying the loan.

Financing boost for Liberis

Liberis’ foray into the Canadian market is underpinned by a recent financial injection of $112 million in debt financing. This funding came from HSBC Innovation Banking and BCI Capital in early December 2023. The substantial financing secured by Liberis demonstrates confidence in the platform’s potential for growth, not only in North America but also across Europe. With this financial backing, Liberis is well-positioned to expand its services to new markets, including Poland, Germany, and other parts of Europe.

Rising demand for small business financing

The Canadian Federation of Independent Business highlights a significant surge in SMBs seeking financing over the past decade. From 35% in 2012, the percentage of SMBs seeking financial support has grown to 58% in 2022. This increasing demand indicates the pressing need for accessible and tailored financing solutions for small businesses. Liberis aims to bridge this gap and support Canadian SMBs by offering transparent and flexible financing options that align with their unique needs.

Challenges faced by small businesses

Small businesses in Canada face a range of challenges when it comes to financing. According to the Canadian Chamber of Commerce, only 28% of businesses that took advantage of the Canada Emergency Business Account (CEBA) loan have paid it back. This highlights the difficulties businesses encounter in meeting their loan repayment obligations, potentially hindering their ability to access future financing. Liberis aims to offer an alternative financing solution to alleviate these challenges and provide long-term support for sustainable growth.

Planned expansion and commitment

With its successful launch in Canada, Liberis is poised to continue its global expansion efforts. The next phase will focus on entering the German, Polish, Norwegian, and Icelandic markets during the first half of 2024. This expansion highlights Liberis’ commitment to empowering SMBs worldwide and ensuring they can access the necessary funding to fuel their growth. By expanding its footprint, Liberis aims to democratize finance and unlock opportunities for small businesses across the globe.

Liberis’ entry into the Canadian market in partnership with Vagaro Capital marks a significant milestone for the platform’s global expansion goals. By providing accessible and flexible financing options, Liberis aims to address the unique challenges faced by Canadian small businesses. The strategic alliance with Vagaro Capital empowers Liberis to support SMBs in their growth journey by offering fixed-cost financing with flexible payment terms. With its recent debt financing injection and plans for further expansion, Liberis demonstrates its commitment to becoming a global leader in embedded finance, supporting businesses in their quest for success. Through its innovative approach, Liberis aims to ensure that small businesses can access the funding they need, precisely when they need it.

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