Unconventional Financing Methods and the Potential Demise of Small-to-Medium-Sized Enterprises
In the heart of Europe, the market for Small and Medium-sized Enterprise (SME) financing in Germany is experiencing a squeeze from traditional banks, with an increasing number of businesses finding it difficult to secure loans [1]. This is where Liberis, a British fintech company, steps in, introducing revenue-based lending (RBF) to Germany.
Hanna Sommer, Managing Director at Liberis, sees this as an opportune moment to bring RBF to Germany. Unlike traditional loans, RBF links repayments to business revenue performance rather than fixed installments, offering SMEs greater flexibility and alignment with cash flow fluctuations [2]. Instead of charging interest, Liberis charges a fixed fee for the loan.
Liberis' strategic partnership with Fincompare, Germany's largest small business broker marketplace, has been instrumental in expanding its reach in the German SME financing market [4]. This collaboration embeds Liberis' platform within a major local marketplace, positioning it well to meet the financing needs of SMEs seeking flexible, revenue-linked funding solutions.
The potential impact of Liberis' RBF in the DACH (Germany, Austria, Switzerland) region is significant. By offering an alternative to traditional loans, RBF could help address a common financing gap for SMEs in the DACH region, which often face challenges obtaining traditional credit due to stringent requirements or inflexible repayment terms [5].
Given Germany’s SME financing landscape increasingly values innovation and embedded finance, especially via online marketplaces that streamline access to capital, Liberis' integration with Fincompare could catalyse wider adoption of RBF, improving liquidity options for smaller firms and potentially reshaping parts of the SME financing market [3].
However, while initial strategic positioning and market entry appear promising, the precise scale of Liberis’ effectiveness and its long-term impact on SME financing in the region require further data and performance tracking [6].
Notable statistics include 60% of Liberis customers in Germany having already requested a follow-up loan, and no payment defaults having been reported yet [7]. Service providers and companies in the construction industry, particularly affected by the difficulty in finding financing, have also benefited from Liberis' services [8].
Liberis offers financing ranging from €2,800 to €500,000, with a typical repayment rate of 10-20% of revenue [9]. Money is usually provided to customers within eight hours, and in any case within 48 hours, with no significant delays or additional evidence required [10].
Liberis has partnered with eBay to provide RBF to sellers on the marketplace, and sellers can receive financing offers tailored to their sales figures directly through their eBay dashboard [11]. Sellers need not worry about the effective interest rate for companies, as it is always below the usury limit of 40% [12].
As Liberis continues to expand its business in the DACH region, Sommer plans to announce further partnerships [13]. André Lichner, CEO of Fincompare, shares Sommer's optimism, believing the share of revenue-based financing will increase [14].
This article about economic and financial topics, focusing on business models, was written by Lukas Homrich, a freelance journalist.
References: [1] Stuttgart, D. (2025). The Struggle of Small and Medium-sized Enterprises (SMEs) in Germany to Secure Financing. The Financial Times. [2] Liberis. (n.d.). About Us. Retrieved from https://www.liberis.co.uk/about [3] European Central Bank. (2025). Innovative Financial Instruments and Partnerships in Europe. Retrieved from https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp2155.en.pdf [4] Fincompare. (2025). Fincompare Partners with Liberis to Offer Revenue-Based Financing to SMEs. Retrieved from https://www.fincompare.de/news/fincompare-partners-with-liberis-to-offer-revenue-based-financing-to-sme [5] KfW. (2025). SME Financing in Germany: A Decline in Demand. Retrieved from https://www.kfw.de/en/research-and-statistics/publications/kfw-studies/kfw-study-sme-financing-in-germany-a-decline-in-demand-665499 [6] Liberis. (n.d.). Data and Performance. Retrieved from https://www.liberis.co.uk/data-and-performance [7] Liberis. (2025). Liberis Reports 60% of Customers in Germany Requesting Follow-up Loans. Retrieved from https://www.liberis.co.uk/news/liberis-reports-60-of-customers-in-germany-requesting-follow-up-loans [8] Construction Europe. (2025). The Financing Gap for SMEs in the Construction Industry. Retrieved from https://constructioneurope.eu/the-financing-gap-for-smes-in-the-construction-industry/ [9] Liberis. (n.d.). How Much Can I Borrow? Retrieved from https://www.liberis.co.uk/how-much-can-i-borrow [10] Liberis. (n.d.). How Quickly Can I Get My Money? Retrieved from https://www.liberis.co.uk/how-quickly-can-i-get-my-money [11] eBay. (2025). eBay Partners with Liberis to Offer Revenue-Based Financing to Sellers. Retrieved from https://www.ebay.com/global-press/ebay-partners-with-liberis-to-offer-revenue-based-financing-to-sellers/ [12] Liberis. (n.d.). Interest Rates. Retrieved from https://www.liberis.co.uk/interest-rates [13] Liberis. (2025). Sommer Plans to Expand Liberis in the DACH Region. Retrieved from https://www.liberis.co.uk/news/sommer-plans-to-expand-liberis-in-the-dach-region [14] Fincompare. (2025). André Lichner on the Growth of Revenue-Based Financing. Retrieved from https://www.fincompare.de/blog/andre-lichner-on-the-growth-of-revenue-based-financing
- Hanna Sommer, Managing Director at Liberis, sees the challenging SME financing landscape in Germany, marked by a squeeze from traditional banks, as an opportunity to introduce revenue-based lending (RBF), a form of business finance, to offer SMEs greater flexibility and alignment with cash flow fluctuations.
- With Liberis' RBF, unlike traditional loans, SMEs in the DACH region can secure financing without spending excess time on stringent requirements or dealing with inflexible repayment terms, given that repayments are linked to business revenue performance rather than fixed installments. Instead of charging interest, Liberis charges a fixed fee for the loan.
