Lloyds Banking Group terminates five-year agreement with invoice financing fintech Satago
Lloyds Banking Group has given notice to terminate its five-year commercial agreement with Satago, an invoice financing fintech based in the UK, after just two years.
Lloyds Banking Group terminates Satago contract
The agreement was initially announced in March 2022 with Lloyds utilising Satago’s cash management tech to allow the group’s business customers in the UK to access cash against invoices due. The agreement was set into motion the following July.
Lloyds also invested £5 million into the fintech in exchange for a 20% equity stake and installed Ben Stephenson, then its managing director and head of invoice finance and asset-based lending (ABL), on the Satago board.
However, according to a statement issued this week by TruFin, the fintech’s parent company, Lloyds has now terminated the agreement just two years after it commenced. TruFin writes: “Following an internal review, the bank has decided to no longer prioritise the Satago platform and exercise its right to terminate the contract.”
“Satago will continue to service, support and meet the needs of those businesses which are currently using the platform as required,” it adds.
The statement also confirms that Stephenson will resign from his position on the Satago board “with immediate effect”.
TruFin says that the termination “is not a reflection of the quality or robustness of the Satago platform”, with the company maintaining faith in the fintech’s ability to “generate significant value through its Lending-as-a-Service Embedded Finance strategy, underscored by its ongoing successful partnerships with Sage and the Bank of Ireland, and its continued progression of a significant pipeline of other Tier-1 banks and specialist lenders”.
Lloyds has not disclosed the specific reasons for the termination.
