Israeli fintech co Creditplace raises NIS 6m

Yaron Saban Photo: PR
Yaron Saban Photo: PR

The digital factoring platform intends to use the funds for PR and advertising, and in preparations to expand to markets aboard.

"Globes" reports that the digital factoring platform Creditplace has recently completed a NIS 6 million financing round. NIS 2 million was raised from current controlling stakeholders Serge Aziza and the company’s chairman Dekel Golan, while the rest was raised from private investors. Since the company was founded three years ago, it has raised NIS 10 million. Creditplace intends to use the money raised to invest in PR and advertising and for preparations to expand their platform to other countries.

Creditplace CEO Yaron Saban said after the financing round was completed, "The company intends to use the raised capital to increase its penetration into the Israeli market, while making the 'net 0 [immediate payment] revolution' available for new audiences."

Creditplace is an investments platform enabling investors to buy invoices of vendors awaiting payment ('due in' invoices or receivables) of their clients. The clients are large companies such as Jewish National Fund (JNF), Israel Electric Corporation (IEC) (TASE: ELEC.B22), Israel Postal Service and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR); therefore, there is a low non-payment risk. The investors provide the funds to the company immediately, without waiting for the due date (similarly to a factoring process), with the deduction of an interest to investors. Thereby, the platform offers investors a 4.5-7.5% annual return, for investments for short terms, which usually do not exceed 90 days.

Creditplace also carries out an underwriting process for these vendors and requires, among other things, that the company's annual turnover be at least NIS 3 million and that it has been operating for at least three years. The platform started operating in 2013 and since then, according to company figures, it has implemented 1,200 transactions totaling NIS 65 million.

Creditplace revenues are based on fees for brokering between the parties. It charges a 0.5-0.7% fee from the company requesting funding and 10% of the interest which investors receive.

Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Yaron Saban Photo: PR
Yaron Saban Photo: PR
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