Unlocking Growth: Finbee Verslui Secures 35 Million EUR Investment from Pollen Street Capital

In a strategic move that promises to reshape the Lithuanian SME financing landscape, alternative lender Finbee Verslui has secured a 35 million EUR investment from European investor Pollen Street Capital. This landmark deal will enable Finbee Verslui to accelerate its mission of empowering small and medium-sized businesses across the country, providing them with the financial resources they need to thrive.

Empowering Lithuanian Businesses to Reach New Heights

Accelerating Loan Disbursement and Increasing Lending Capacity

Finbee Verslui's CEO, Tomas Mačiulaitis, emphasizes the transformative impact of this investment, noting that it will enable the company to fulfill the growing demand for SME financing in Lithuania. "Until now, we have been increasing liquidity with our own funds, but this partnership will allow us to grow at a much faster pace," he explains. The additional funding will enable Finbee Verslui to disburse loans more quickly, with the time between contract signing and funds being deposited in the borrower's account reduced to just a few hours. Moreover, the company will now be able to provide larger loan amounts, no longer constrained by the liquidity available on its platform.

Offering More Competitive Financing Terms

The influx of capital from Pollen Street Capital will also empower Finbee Verslui to offer more favorable financing terms to its customers. "We will be able to lend as much as the real need is, without having to limit the maximum loan amount," says Mačiulaitis. This means that businesses seeking larger loans will now have access to the full amount they require, enabling them to pursue their growth strategies with greater confidence and flexibility.

Promoting Financial Inclusion and Economic Growth

Finbee Verslui's mission to support small and medium-sized enterprises is particularly crucial in Lithuania, where these businesses account for the vast majority of legal entities. "Small companies with up to 10 employees account for about 84% of all legal entities in Lithuania – they are the backbone of the economy, but access to finance remains challenging for this segment," Mačiulaitis explains. By providing these businesses with the financing they need, Finbee Verslui aims to help them increase their volumes, create jobs, and contribute to the overall economic growth of the country.

Attracting Foreign Investment to Lithuania

The Pollen Street Capital investment in Finbee Verslui is also significant in the broader context of Lithuania's economic landscape. "This is a new investment attracted to Lithuania at a time when there is a lot of talk about foreign investors withdrawing from the region," notes Mačiulaitis. The partnership serves as a testament to the country's potential and the confidence that international investors have in its growing alternative lending market.

Embracing the Institutional Investor Trend

Finbee Verslui's transition to securing institutional funding is part of a broader trend observed in more developed alternative lending markets. Mačiulaitis explains that as the demand for SME financing outpaces the growth of retail investors, companies are increasingly turning to institutional investors to fuel their expansion. "The number of retail investors and their ability to finance loans is growing more slowly. Therefore, companies that want to fulfil the market opportunity are forced to look for institutional money, which allows them to finance large amounts of loans much faster," he says.This shift towards institutional funding is not unique to Lithuania; it has been observed in other markets, such as the United States and the United Kingdom, where platforms like LendingClub, ThinCats, and Zopa have all transitioned to institutional-only funding models. Finbee Verslui's partnership with Pollen Street Capital positions the company at the forefront of this evolution, ensuring its ability to meet the growing demand for SME financing in Lithuania.