Factoring & Invoice
Building an innovative platform to provide customers with instant access to financing and wide investment opportunities.
More and more companies understand that, in today’s global and increasingly competitive economy, it is essential to approach all facets of a business in a holistic rather than siloed fashion. This 360-degree view of a company is changing the way operations are managed and tasks are completed, especially within the procurement and finance functions.
At the same time, small companies still face an uphill battle in securing the payments and funding support they need. Customers demand extended invoice payment terms, sometimes up to six months, and raising bank finance to cover outstanding invoices is an onerous and often unsuccessful process.
Technological innovation offers new ways of addressing these funding challenges and promises to forever change the financial services industry services offering. Trade finance is transitioning from an old-fashioned, paper-based industry dominated by traditional banks to a digital offering from which transactions can be largely conducted, and funded, online.
Access to digitally-based alternative lending provides SMEs with the cashflow lifeline they need to compete with their bigger rivals. Banks, and particularly large banks, are geared for customers that require significant loans. Meantime, the small business owner doesn’t get the same quality service, waits longer for their loan application to be approved, and, after completing all the administrative requirements, their request for funding is often turned down.
Banks have also reduced their exposure to trade finance over the last few years, only servicing their largest multinational clients. Strict capital and regulatory compliance rules have increased the costs of doing business and eaten into profitability. Geopolitical uncertainty is also prompting banks to become more conservative in extending loans for import/export trade, particularly in developing countries.
Fortunately, technology is changing the trade finance playing field. From startup fintech platforms and specialist boutique firms through to tech giants, it has enabled new non-bank (alternative) finance providers, to disrupt the industry and gain an increasing share of the trade finance market.