Goldman Sachs led the funding of the debt facility.

Melbourne-based fintech Timelio has raised a $270 million warehouse funding facility led by Goldman Sachs (NYSE: GS) as the senior lender. The facility allows Timelio to scale funding to businesses in need of cash flow, and also lower its overall cost of financing. (Timelio)

The startup is a financier of working capital for businesses against their sales invoices or purchase orders and has funded $1.5 billion since its founding in 2015. According to AFR, the company can now leverage the new facility to provide nearly $2 billion in annual lending to its customers.

Alternative to traditional financiers

Timelio said the warehouse facility would strengthen its position “as an innovative alternative to traditional financiers.”

Long-term “marketplace” lenders have pivoted to participate in Timelio’s innovative lending process through the warehouse facility. ‘’I am pleased that the unique structure of our facility has also allowed us to bring in our valued long-term investors, many of whom have been part of Timelio’s journey for over 6 years,” said Timelio co-founder and CEO, Charlotte Petris.

“Thorney has been invested in Timelio since its beginnings and we continue to support the company,” said Alex Waislitz, Founder and Executive Chairman of the Thorney Investment Group. “We believe in the company’s business model and its product offering in what is a fast-growing segment of the finance industry.”

Timelio: Rapid growth attracts investors

The pandemic has boosted the working capital needs of its Australian customers and demand has been growing at 15% month on month, while the ticket size of the average funding has surged from $250,000 in 2017 to $1 million currently. Timelio’s funding to its customers has therefore grown by 300 percent over the past three years.

Charlotte Petris said: “This funding facility forms a key pillar to support our continued exponential growth and enables us to expand product funding where we have the strongest growth opportunities, particularly in funding overseas transactions and trade finance.”

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Image: Founders Andrew and Charlotte Petris