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Defacto offers instant, short-term, 100% flexible financing for SMBs.


We believe Fintech should get regulated, and we’re the first B2B lending fintech to do so

Charlotte Guounot
March 18, 2024
2 min
Defacto updates
Future of finance
Inside Defacto

Since day one, Morgan, Jordane, and Marc-Henri have put risk and compliance at the core of Defacto’s business. That is one of the reasons I joined the Defacto journey so early on as a debt and risk management expert with 8+ years of experience.

Today, we’re happy to announce that Defacto is the first B2B fintech lending service to be licensed as a “Société de financement” by the French Prudential Supervisory Authority (ACPR). This pivotal milestone allows us to join the small group of licensed fintechs such as Klarna, Younited, and Alma who have also undergone rigorous evaluation.

Being licensed is a long-term commitment

Being licensed by the ACPR (Autorité de Contrôle Prudentiel et de Résolution) truthfully is a big upfront and ongoing investment we’re making to continue to uphold high compliance standards. Licensure not only means we’ve met the initial regulatory requirements but also that we must continue to adhere to legal and regulatory standards as set forth by the French authorities. In short, our risk expertise and management never stops, allowing us to be more resilient as we grow.

Balancing a SaaS mindset with a traditional banking risk appetite

At Defacto, we wear two hats: the one of a tech startup and the one of a risk-minded financial institution. As a startup, we’re constantly seeking ways to improve operational efficiency and end-user experience while also being mindful of our responsibilities as a financial institution.

Ultimately, we believe all financial institutions are in the business of risk and therefore need to make the commitment to prioritising their customers’ relationship and understanding the management of all types of risk (credit, operational, IT, etc) .

Our co-founder and CEO, Jordane Giuly, says, “If you look around, you’ll see how quickly fintechs pop up and shut down by getting distracted by the shiny, easy parts of the business. Those that stick around invest in compliance, fraud, and work collaboratively with traditional banks.”

Owning compliance is a plus for partners and the overall user experience

Compliance isn't just a box to check but an opportunity for growth and improved service. By integrating compliance into our platform with measures such as Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations, our fintech and marketplace partners like Pennylane and Malt reap the benefits alongside us. We’re able to internalise regulation constraints to own the user experience and explain the constraints to our partners avoiding a “black box effect” such as “it’s not possible for compliance reasons”. They, too, are able to extend an even more compliant service to their end-customers when offering lending.

Our more than 10,000 borrowers benefit, too, from a smoother user experience with no third-party plugins or opaque processes. Overall, this move is a win-win-win for all parties involved.

Regulation is integral to our ethos

The entire team celebrates this achievement which reflects the hard work from the lean but mighty team of 22 we are today. Stay tuned for more updates as we continue to redefine the future of B2B lending in France and beyond.

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