Satago Financial Solutions Limited (“Satago”), a subsidiary of TruFin (TRU), has signed a Letter of Intent (“LOI”) to enter into a three-way partnership with Sage and Lloyds Bank.
The partnership will formalise plans to create an embedded finance solution within Sage and aims to help its clients - small and medium-sized businesses - better manage their cash flow.
Powered by Satago, Sage customers will be able to access instant financing from Lloyds, based on invoices due, regardless of payment terms, the finance provider told investors.
Satago, Sage and Lloyds have signed a LOI with the final terms of the partnership subject to commercial negotiation. Following an initial roll-out in the UK, Sage and Satago intend to subsequently deliver the solution globally, working with local Banks in respective countries.
Sinead McHale, Chief Executive Officer of Satago, told investors this morning: “More than ever before, it is important that we endeavour to support those SMBs which continue to struggle with late payments and supply chain disruption. Having previously launched the UK’s first digital end-to-end Single Invoice Finance with Lloyds Bank in December 2020, we are proud to extend this partnership to power the first full-cash, management-embedded finance solution for Sage customers working with two of the most trusted brands in the UK.”
Neal Watkins, EVP Product, Sage, added: “Small businesses are an integral part of the UK business landscape. We are excited to partner with Lloyds Bank and Satago to provide our customers with end-to-end cash flow management - from understanding their current financial position, to forecasting future scenarios with Futrli by Sage, and then onto solving financial needs as they arise through our new partnership with Lloyds and Satago. In the current climate, providing these new and innovative ways to understand and then unlock cash flow is more important than ever for the nation’s SMBs - supporting our customers to thrive.”
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Earlier this year, TruFin confirmed that it had raised £8 million to fund the growth of its subsidiaries, Satago and
Playstack, and to help fund the group through to profitability.
Both Satago and Lloyds are now working towards finalising a commercial agreement in the coming months. Earlier in March 2022, the Lloyds Banking Group completed an investment of £5 million of new equity capital into Satago at a pre-money valuation of £20 million.
The Board of TruFin considers the latter agreement as “a landmark transaction,” with Satago securing one of the largest banks in the UK as a strategic, commercial and financial partner.
The landmark deal is expected to have a material positive impact on Satago’s revenues to the point where it will be transformational for TruFin as a whole. Alongside this, there are still three other businesses under TruFin’s umbrella that are also improving in 2022 and beyond.
Within games publishing, TruFin’s Playstack subsidiary, which is expanding the impact of the Mortal Shell IP, has secured publishing rights for three new games to be released within the next 12 months, each with the expectation of high user appeal and strong marketability.
It is also working to expand its internal games development capability via recruitment or acquisition so it can increase its core games portfolio and increase reach in all key markets.
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