The business seed funding platform Debit was launched in the UK with the aim of helping companies manage their cash flow and maximize their growth potential more effectively.
Tackling one of the main reasons most start-ups fail, Debite’s buy-it-now-pay-later (BNPL) model means customers benefit from cost-smoothing of expensive business payments, such as subscriptions, marketing and inventory, through a flexible and affordable reimbursement plan.
The platform was designed to meet the needs of start-up businesses that are currently underserved by traditional lenders.
Debite offers significantly higher spending limits than typical loan and credit products available to this customer segment, with interest rates starting at zero percent. Debite’s ambition is to become a complete banking and financial management solution for underserved start-ups.
Commenting on the launch, the CEO of Debite Tayga Baltacıoğlusaid, “We are beyond excited to realize our vision with the launch of Debite.
“So many start-ups start out with incredible ambitions and the potential to do incredible things, but the problems of managing the heavy burden of operational costs and the lack of attractive financing options from traditional lenders to help smooth cash flow means growth is often stifled.
“We know this market is ripe for innovation and we have huge growth plans to meet this challenge. We look forward to fueling the success of the next generation of business champions.
The company will initially offer two main products in the UK; its “save and spend” loans and its “Boosted Debit” card:
Debite’s loans provide instant cash to help businesses manage the high cost of critical growth initiatives.
Whether it’s saving on day-to-day operational costs, such as SaaS subscriptions by enabling the purchase of annual or monthly payment plans, or supporting spending on key marketing campaigns to drive customer acquisition , Debite’s savings and expense loans help scaling businesses overcome a number of major financial hurdles.
Businesses will be able to access funds, normally unavailable from traditional lenders, between £5,000 and £50,000 at monthly interest rates from 1.40%.
Along with that, the company’s enhanced debit card offers higher credit limits than traditional lenders at zero percent interest if paid within 30 days.
Similar to the company’s loan offering, customers will benefit from a range of flexible repayment terms providing greater control over day-to-day cash flow and the power to unlock growth opportunities.
Backed by fintech investors
The company announced plans to engage with 20 new hires in sales, finance, risk, technology and marketing, expected by the end of the year.
To fuel this growth, Debite completed a round of pre-seed equity financing, as well as debt financing, from fintech funds and angel investors, including backing from the former CEO of Mox Bank, one of Hong Kong’s first neobanks; the co-founder of the electronic wallet company daddy; and QNBBEYOND Companiesthe VC arm of NB Bandthe largest financial institution in the MENA region.