Australian firm Grapple, which provides working capital loans to small and medium-sized businesses, has reportedly raised $35 million under a warehouse credit facility from financier Global Credit Investments (GCI). based in Sydney.

With this money, Grapple hopes to scale and maintain its growth trajectory, according to a report by FinTech Futures. The funds will also help the fintech company meet the growing demand for its solution.

Founded in 2018, Grapple allows suppliers to be paid in full instantly, and Grapple will pay bills on behalf of customers. The customer then refunds Grapple in four installments.

“The current conditions, with falling property prices and rising interest rates, are making it harder for SMEs to secure business funding from banks and large financiers.

“Invoice financing is an increasingly attractive option to businesses looking to improve cashflow, increase working capital and accelerate their growth. We expect the influx of new customers to continue over the next 18 months.”

Grapple founder and CEO Dawson.

Late last year, another Australian FinTech company, Wagepay, received a $10 million grant to support its capacity expansion. The company gives employees real-time access to a portion of their earned wages.

FinTech funding in Australia slowed significantly in the third quarter of 2022, with just 18 transactions completed. This represents a 25% decrease in trading activity compared to the previous quarter.

According to data from FinTech Global, the whole year saw a drop in funding. In the first three quarters of the year, $900 million was invested in 92 transactions, compared with the whole 12 months of 2021 with $3.8 billion invested.