TruFin said on Friday that its majority-owned investment Satago and Lloyds Banking Group have entered into a five-year commercial agreement for the bank to licence Satago’s software platform for its single invoice finance and whole-of-book invoice factoring customers.
The AIM-traded firm said Satago’s platform would give Lloyds a new, digitised proposition to further support UK businesses.
Satago would receive a recurring fee for each customer using the platform, as well as one-off implementation fees.
It said Satago expected the software platform to be made available to Lloyds customers during the fourth quarter of 2022.
TruFin said the “landmark contract”, coupled with a growing pipeline of commercial partners, ensured Satago was well-positioned to roll out its platform in the coming years.
“The signing of this commercial agreement further solidifies our position as the best-in-class provider of innovative working capital solutions,” said Satago chief executive officer Sinead McHale.
“I am immensely proud of our work to deliver a newly-constructed invoice finance solution for Lloyds Banking Group.
“By working collaboratively with the bank, together we will deliver a solution that democratises working capital solutions for small to medium enterprises all over the UK, regardless of size or sector.”
Additionally, TruFin said it had completed a further £2m investment in Satago, as contemplated at the time of its recent fundraising on 22 March.
For the purpose of the investment, the value of Satago was the same pre-money valuation that Lloyds participated at for its £5m investment on 9 March.
Following the transaction, TruFin said it held around 67% of Satago, with the company confirming that it was still trading in line with market expectations.
“This commercial agreement with Lloyds Banking Group represents a transformational event for Satago,” said TruFin CEO James van den Bergh.