Braunschweig, 22/07/2021 – Varengold Bank AG and the JITpay™ Group have entered a partnership for refinancing the receivables portfolio of the Braunschweig-based fintech and logistics financial service and billing. The transaction volume will initially be in the mid double-digit million range.
The individually created securitisation structure will enable JITpay™ to sell receivables packages on a revolving basis through a true-sale process to a special purpose entity designated specifically for this purpose. The focus for all the parties involved when implementing this structure was on establishing simple and automated workflows that even allow efficient daily interaction.
Varengold will refinance large parts of the receivables portfolio of the JITpay™ Group’s logistics factoring division. These include predominantly small-scale spot market receivables arising from transport services, which are settled and pre-financed, inter alia, via the JITpay™ platform or via the integration of JITpay™ with cooperation partners, such as Europe’s leading freight and vehicle exchange, TIMOCOM.
Securing sufficient liquidity is a major challenge for forwarding and logistics companies with long payment terms of more than 60 days. The payment processing and financing function in logistics therefore plays an increasingly key role and smaller transport companies in particular are struggling with liquidity bottlenecks more and more frequently. ‘We will support JITpay™ in securing the cash flow of their partners,’ says Frank Otten, member of the Management Board of Varengold Bank. ‘The logistics sector has great potential. Going forward, we want to support other tech-savvy and well-structured companies like JITpay™ to grow quickly.’ As a fintech partner, Varengold develops individual products that are tailored to their business models and helps them finance their loan portfolios.
For JITpay™, this further refinancing opportunity represents a new milestone in the still young history of the company. ‘With this SPV structure, we have created another refinancing option that will enable us to achieve even more dynamic growth in the future whilst protecting our balance sheet. Due to Varengold Bank’s understanding of scalable business models, we were also able to come up with a tailor-made solution together to create the conditions for achieving our ambitious goals,’ says Dennis Wallenda, Managing Director of JITpay Financial GmbH.
About Varengold Bank AG
About Varengold Bank AG Varengold Bank AG is a German bank founded in 1995 and in possession of a full banking licence since 2013. In addition to its head office in Hamburg, the bank has branches in London and Sofia. The key business areas are Marketplace Banking and Transaction Banking (Commercial Banking). In Marketplace Banking, the focus is on cooperation with European fintechs, and in particular credit platforms. Varengold Bank’s service portfolio includes Funding, Debt and Equity Capital Markets products, Fronting Services (BaaS) for products subject to banking licence requirements and International Payment Services. Dr Bernhard Fuhrmann and Frank Otten form the Board of Managing Directors and together with a 100-strong international team they continue to help shape the modernisation of the financial sector. Varengold Bank is registered with the Federal Financial Supervisory Authority (BaFin) under 109 520 and the Varengold share (ISIN: DE0005479307) has been listed on the Open Market of the Frankfurt Stock Exchange since 2007. Further information can be found at https:// www.varengold.de/.
About JITpay™
JITpay™ is a fast-growing financial service and billing provider specialising in the logistics industry. Established in 2016, the JITpay™ Group digitises billing and financial processes in the logistics sector. JITpay™ takes over the entire service billing process between client and contractor and combines this with a specially developed (reverse) factoring programme enabling immediate payment of contractors and flexible payment terms for clients. JITpay™ has its own, fully digital factoring company. JITpay™ currently employs over 50 people at sites in Berlin and Braunschweig.
You can find more articles here in our news overview Image: JITpay™
JITpay™ stands for Just In Time payment!