Coronavirus: fintechs, too, are mobilizing to help companies

Article published in La Tribune by Juliette Raynal regarding the initiatives taken by the crowdfunding platform October but also by startups in the world of finance to help small businesses and professionals affected by the coronavirus crisis.

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The banks, and insurance companies to a lesser extent, they are not the only ones to mobilize to help companies in difficulty facing the health crisis linked to the coronavirus epidemic. The French fintech October, specializing in crowdfunding for SMEs, also wants to be able to "give air" to the small and medium-sized businesses that it finances and will postpone their repayments for the next three months in order to relieve their cash flow.

According to fintech calculations, of the 800 or so companies it has funded in five European countries, 90% are affected by the coronavirus crisis. In details, 30% are directly impacted, such as restaurants, hotels and small businesses. And, 60% will be in the medium term.

Freezing of refunds

“The situation is dramatic for companies. They all have real liquidity problems because the money is no longer circulating. We felt that the situation deserved a gesture ”, explains Olivier Goy, CEO and founder of October.

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Report, free offer, webinar… Finance startups are active

This mobilization is not isolated. Other start-ups in the world of finance have taken initiatives on their own to support small businesses and professionals. The Anaxago crowdfunding platform, also proposes, but under certain conditions, a three-month postponement of coupons due between March 1 and April 30. Still in terms of crowdfunding, Tudigo offers French VSEs and SMEs to borrow between 10 and 50.000 euros (against 100.000 euros minimum usually) under less expensive and simplified conditions.

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