Pleo has secured a 40-million-euro (about $43 million) debt financing facility from HSBC Innovation Banking UK.
With this facility, the Danish FinTech will expand its credit offering, Pleo Overdraft, which helps European companies navigate gaps in cash flow and keep their businesses moving without missing crucial payments or facing late payment fees, Pleo said in a Wednesday (May 1) blog post.
Pleo Overdraft is currently available in Sweden, Germany, the United Kingdom and Denmark, according to the post. It will soon be offered in the Netherlands as well.
“This deal with HSBC Innovation Banking means we’re able to take our credit offering to new heights, to even more customers in more countries using various currencies, and providing more flexibility options than ever before,” Pleo said in the post.
By providing the debt financing facility, HSBC Innovation Banking UK aims to support Pleo in its global growth, Conor Sheehy, managing director and head of warehouse finance at HSBC Innovation Banking UK, said in the post.
“This transaction demonstrates HSBC Innovation Banking’s capabilities to provide multi-currency, multi-jurisdictional facilities to support leading credit originators launching new and innovative products,” Sheehy said.
Pleo offers this Overdraft feature along with its spend management solution, which includes seamless card payments and receipt capture, according to the post.
The company is expanding its offerings, aiming to become “the go-to holistic spending solution” for companies of all sizes, the post said.
“Beyond this milestone partnership and imminent launch in the Netherlands, we are expecting to see exciting developments over the coming 12 months as we prepare to launch in even more markets,” Amit Kahana, vice president of credit and treasury at Pleo, said in the post.
Pleo CEO Jeppe Rindom told CNBC in December that the FinTech company is “continuously evaluating various options to fuel expansion that best serve our customers.”
CNBC reported at the time that Pleo was expanding its executive team with a new chief financial officer, financial services veteran Soren Westh Lonning, in a sign that the company was getting ready to go public. Pleo said in the report that it was in no hurry to launch an IPO.
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