DE FACTO: La titrisation devient l’arme des fintechs pour financer la croissance des PME

Strategic Use of Securitization by Fintech Companies

Securitization, traditionally utilized by consumer credit or real estate firms, is now being strategically adopted by technology startups. Fintech companies, such as Defacto, are employing this method to refinance their loan portfolios in a structured manner, leveraging private debt to meet substantial demand. In collaboration with Citi as the senior lender and Viola Credit in a mezzanine capacity, Defacto has nearly doubled its fund size, which reached 167 million euros in 2023.

This financial mechanism provides the startup with an annual financing capacity of 1.8 billion euros, aimed at supporting the working capital needs of European SMEs. Unlike traditional banks, Defacto operates on an "API-first" model, allowing partners, such as neobanks, accounting software, and B2B platforms, to integrate its financing solutions directly into their interfaces. This integration transforms credit into an embedded function, activated in real-time based on customer demand.

This approach enables unprecedented scalability. Within three years, Defacto has financed nearly one billion euros for 14,000 client companies. Its model relies on the automation of the credit lifecycle, real-time data utilization, and prudent risk management through direct access to partners' business tools (e.g., Qonto, Malt, Pennylane). In May 2023, the fintech also launched a "low-tech" version to allow networks of accountants and professional associations to offer financing solutions.

Defacto's embedded finance model, backed by a solid banking infrastructure, distinguishes it from competitors. Other firms, such as Karmen and Unlimitd in France, offer revenue-based financing for digital SMEs but lack integrated API solutions. In Europe, fintechs like Banxware (Germany) and YouLend and Liberis (UK) are also developing integrated B2B credit models, often partnering with payment or e-commerce platforms, but few combine API integration, financing company accreditation, and structured refinancing through securitization.

Amid the rise of private credit in Europe, this operation affirms the viability of a hybrid model where technology, financial infrastructure, and structured debt converge. The mandatory transition to electronic invoicing in 2026 is expected to further accelerate the adoption of these integrated solutions.

Founded in mid-2021 by Jordane Giuly, Morgan O'hana, and Marc-Henri Gires, Defacto is licensed as a financing company and operates from France. The new 300 million euro securitization was structured with Citi as the senior lender and Viola Credit as the mezzanine lender. The proceeds from this operation will expand the annual financing capacity to 1.8 billion euros. To date, Defacto has financed nearly one billion euros for more than 14,000 European companies. The company employs 27 people and is headquartered in Paris.

D’après FrenchWeb.