Ex-Goldman Sachs bankers George van Dorp and Koen van Vlijmen have launched Fundflow, a new platform aimed at transforming the private credit market for small businesses. This innovative service seeks to provide entities that are typically overlooked by major lenders with a more affordable and accessible means to secure funding. Here's how Fundflow is reshaping the landscape for small-scale enterprises:
- Fundflow sets a deal minimum of €1 million ($1.1 million), targeting businesses that are often sidelined by high traditional market rates.
- The platform boasts transaction costs under 1%, significantly lower than the conventional advisory and legal fees that can amount to 5%.
- By leveraging technology, Fundflow matches small businesses with a diverse pool of lenders, including banks and debt funds, bypassing traditional size constraints and lack of connections.
- The eligibility process is streamlined, and investment terms are set to align with the needs of small businesses while providing lender offerings such as Hambro Perks' founder-friendly capital.
- As the private credit market becomes increasingly competitive, particularly in leveraged buyouts, Fundflow offers lenders like Flow Capital new opportunities to invest in non-sponsored company sectors with less competition.
The introduction of Fundflow presents a promising challenge to the status quo of financial markets, potentially democratizing access to capital for small enterprises traditionally excluded from such opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.