Factris, an Amsterdam-based factoring provider, merged with Debifo, a Lithuanian invoice financing company. With the merger, the Dutch company has plans to grow its development team and scale its operation in Lithuania to support its plans of becoming a European leader in working capital solutions for SMEs.

Factris was drawn to Lithuania, according to Brian Reaves, its CEO, due to its fintech-friendly environment and the opportunity to gain a banking license.

“By choosing Lithuania,” Virginijus Sinkevičius, Lithuanian Minister of Economy and Innovation, says that , “companies such as Factris bring maturity to the country’s fintech sector and help our specialists to gain even more experience in developing various tech solutions”.

The Dutch company also plans to invest EUR 8 million in Lithuania to roll out new technologies, improve its services, and grow its factoring services in the country. SpeedInvest and Optima Investments have committed to supporting Factris in their European expansion with additional capital, which will be used to acquire other European SME working capital providers.

As of late, Lithuania has become a hub for fintech activity, due to companies being able to easily apply for banking licences in the country through a streamlined process and take advantage of passporting rules to offer services throughout the EU. Google and Revolut are two companies that have obtained licenses in Lithuania.

The country is also popular amongst companies seeking to hedge their bets against Brexit. Reuters reports that around 100 financial companies from Britain and other countries having applied for licenses in Lithuania to guarantee they can still do business in the EU after the 29 March Brexit deadline.