Hokodo secures GBP £100m debt facility to boost European B2B transactions

London's European provider of digital payment terms solutions, Hokodo, has announced the securing of a new GBP £100 million debt facility from global credit investment manager Viola Credit. This funding will enable Hokodo to facilitate over GBP £1.5 billion of B2B transactions across Europe in the next two years.

The newly secured debt facility will support the continued expansion and roll-out of Hokodo's unique embedded Pay Later and Pay Now offerings for B2B merchants and marketplaces. So far, these innovative solutions have enabled Hokodo to process payments for over 50,000 business buyers and initiate industry-defining partnerships with international institutions such as BNP Paribas, Citi, and SCOR.

Aman Mehra, VP of Finance at Hokodo, expressed optimistic views about the funding and established partnership. He stated, "With this new credit facility, and by partnering with a reputable global credit fund, we are able to continue our work, supporting the B2B economy, making payment terms safer, simpler and more sustainable for buyers and sellers of all shapes and sizes."

Ever since its inception in 2018, Hokodo has continuously been enhancing its offerings, providing B2B buyers throughout the UK and EU the flexibility to defer payment by 30, 60 or 90 days or until the end of the month following purchase. Additionally, Hokodo has introduced Pay in Instalments and Pay Now features, expanding the range of payment options available for B2B merchants. Every aspect of the trade credit management process is swiftly handled by Hokodo, giving businesses the freedom to focus on customer acquisition, product development, and growth opportunities.

With Hokodo's innovative solutions, cash flow issues become less of a concern for both buyers and sellers, fast-tracking growth for businesses involved in the transactions. Its recent partnership with US B2B payments company Balance, following the acquisition of a Lithuanian payments company in 2023, showcases its ambitious expansion goals across Europe and North America.

Neha Mittal, VP of Europe at Viola Credit, shared her views on their collaboration with Hokodo. She said, "Since inception 6 years ago, Hokodo has rapidly become one of the leading providers of digital trade credit, offering swathes of small businesses access to seamless financing options for purchases, in turn helping merchants expand their customer base further. We are thrilled to develop our relationship with Hokodo and provide additional financing capacity to support their growth and scaling ambitions across Europe."

The partnership between Hokodo and Viola Credit resonates with the shared vision of supporting small businesses and facilitating seamless, digitalised B2B transactions. This funding is not merely a cash injection but a testament to Hokodo's potential as a transformative player in the digital trade credit sector.