Zurich-based fintech Teylor secured a €275m private securitization from Barclays, M&G and other investors on Thursday, designed to facilitate over 500 new SME loans in Germany.
Founded in 2018, the Swiss fintech has a digital credit platform which allows fast SME lending in Germany, while also outsourcing the technology platform to financial institutions.
Patrick Stäuble, CEO and founder at Teylor told GlobalCapital that the deal represented an important landmark for the company.
“We needed to take the next big step and go from fundraising tranches of a few million each from family offices to doing a big transaction like this to scale up the business," he said.
Huy Nguyen, head of private debt at Teylor, who led the transaction added that securitization was a powerful tool to scale up the business. "For us as an alternative lending platform, this is certainly a very strong way to set up our funding base and ensure we have the capital to meet the rising demand by SMEs for alternative financing solutions," he said.
While there are no immediate plans to turn the facility into a public SME loan ABS, or even a middle market CLO, a public deal is part of Teylor's future aims, Stäuble said.
“As far as I know, we’re the first to ever do this in the German market," he said. "That’s also one of the reasons why we wanted to work with Barclays and M&G – they’ve done a lot of these in the UK but the German market is pretty untouched.”
Teylor's growth is part of broader trend in Germany and the rest of Europe where processes in SME finance begin to digitize in a similar vein to how consumer banking was modernised.
Gordon Beck, head of European corporate & sustainable securitisation at Barclays, said in a statement: "SMEs require a reliable platform to satisfy financing needs with limited bureaucratic hurdles and efficient deal execution. We are pleased... [to] support Teylor as one of the companies driving the transformation of SME lending through digitisation."
"The next fintech revolution will be in B2B and will be driven by companies like Teylor," Stäuble said. "With the support of our investors, we will change how credit is provided in modern economies.”