# Satago and ESF Capital cement £4.6m deal to finance SMEs
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2016-06-09
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Satago announces £4.6 million funding from ESF Capital for
Meta Description: Satago secures £4.6M funding from ESF Capital for its revolutionary cash-flow finance solution, offering SMEs dynamic invoice financing and credit control.
URL: https://financedigest.com/satago-and-esf-capital-cement-4-6m-deal-to-finance-smeshtml

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_Debt line and equity stake from marketplace lending_ _accelerator sees Satago launch all-in-one cash-flow solution_

Satago, the all-in-one cash-flow finance solution for SMEs, today announced that it has secured £4.6 million in funding from ESF Capital, the institutional marketplace lending accelerator. The newly-signed financing arrangement comprises an initial £3 million credit line from ESF and an equity investment of £1.6 million, with further potential for additional equity and debt funding. The [deal signals the launch of Satago’s unique financing](https://www.financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberg.html "Citi halted financing for Trafigura’s nickel deals in October – Bloomberg") solution, which marries dynamic single invoice financing with a free, online, universally-accessible credit control platform for SMEs. Satago invoice finance had previously been in a pilot phase since January 2016.

With late payments a key cause of SME and micro-business insolvency, Satago’s unique offering – using technology to give smaller companies the same level of credit control as major corporations – is both a revolutionary advancement for the SME market segment, and the latest example of an emerging fintech company addressing a market issue overlooked by banks. With more than 1000 SMEs already signed up to Satago’s platform, the firm can currently finance up to £50,000 per client (including invoices as small as £500) and is predicting strong growth in the [year ahead](https://www.financedigest.com/the-year-ahead-top-payments-trends-to-watch-out-for-in-2022.html "The year ahead: Top payments trends to watch out for in 2022").

**Satago’s all-in-one cash-flow solution:**

- Acts as a more flexible and lower-cost [alternative to traditional financing](https://www.financedigest.com/demystifying-alternative-finance.html "DEMYSTIFYING ALTERNATIVE FINANCE") arrangements such as factoring,
- Provides a dynamic, near-instant source of finance as an [alternative to traditional bank overdrafts](https://www.financedigest.com/putting-smes-first-the-alternative-to-the-overdraft.html "Putting SMEs first: the alternative to the overdraft"),
- Is designed to assess and improve clients’ financial health _prior_ to offering any financing,
- Incorporates a fully-integrated solution for invoice reminders,
- Allows clients to visualise credit [risk from their sales ledger – enabling users to formulate credit risk policies](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation") and limits, and
- Seamlessly links with online [accounting software](https://www.financedigest.com/is-your-accounting-software-holding-you-hostage.html "Is your accounting software holding you hostage?"), allowing compatibility with existing infrastructure and software packages.

This is ESF’s second strategic partnership, following its acquisition of 73.5% of ThinCats, [Europe’s largest](https://www.financedigest.com/portugal-set-to-start-up-europes-largest-floating-solar-park.html "Portugal set to start up Europe’s largest floating solar park") provider of secured P2P SME loans, in December 2015. The investment in Satago complements ESF’s strategy to support [innovative platforms providing a range of financing](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance") options to SMEs.

“Late [payments are a perennial issue](https://www.financedigest.com/exclusive-apple-hit-with-antitrust-case-in-india-over-in-app-payments-issues.html "Exclusive-Apple hit with antitrust case in India over in-app payments issues") for SMEs, damaging their finances as a result. But with this support from ESF Capital, Satago has the firepower needed to finally put SMEs in [full control,” says](https://www.financedigest.com/eu-says-full-russian-gas-halt-would-slash-gdp.html "EU says full Russian gas halt would slash GDP") **Steven Renwick, CEO and Founder, Satago**. “We’re the only finance company that actually tries to improve clients’ financial health before offering them finance, and we’re excited to now offer these capabilities to a much wider audience”.

**John Mould, CEO, ESF Capital**, comments “Alternative finance is a rapidly growing sector, and Satago – boasting both the necessary technology and specialist expertise – will quickly become a [key player](https://www.financedigest.com/aluminum-cans-market-tremendous-growth-opportunity-trends-with-key-players.html "Aluminum Cans Market Tremendous Growth, Opportunity, Trends With Key Players") in the sector’s progression. Satago is a clear complement to ESF’s broader business: particularly significant to SMEs [seeking a range of finance options and investors](https://www.financedigest.com/anti-static-foam-packaging-market-booming-segments-investors-seeking-growth-2030.html "Anti-static Foam Packaging Market Booming Segments; Investors Seeking Growth 2030") looking to diversify their portfolios.”

Concurrent with the investment from ESF, Satago raised a further £550,000, including follow-on participation from previous investors.


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