Fintech companies can address cash flow COVID-19 problems

By Ian Duffy, CEO, Accelerated Payments

The Covid-19 pandemic continues to create global uncertainty and has placed businesses under economic duress, and fintech is no exception.

Many Fintech companies like the rest of the financial system, have gone into overdrive to respond to the crisis. Put simply, without Fintech, ordering online would not be possible.

Consumers and businesses alike can gain instant access to money management tools, funders can view cash and investment positions in real-time and all this without the need to go to an office.

Fintechs have risen to the challenge, adjusting their products and services to meet the needs of customers who are struggling through the pandemic themselves.

This accelerating adoption of technology can only be positive for businesses as focus shifts to preserving cash flow and creating a sustainable future.

This article briefly looks at how Fintech, particularly invoice finance, can play an important role in addressing the cash-flow problems that a lot of businesses are facing because of the virus.

Flexibility, simplicity, and speed of funds have always been key factors for many SMEs when choosing a finance provider.

Flexibility

Technology allows businesses to have complete control over your cash flow. The availability of tech integration extends beyond accounts software and OpenBanking.

It now enables automatic reconciliation of payment, credit control, and predictive analysis for future working capital requirements. These all play a role in supporting invoice finance and ultimately benefit business.

One of the major benefits of invoice finance is that you only pay for funding as you use it. Once you have a facility in place you can dip in as and when you need it, customer by customer, or even invoice by invoice.

Simplicity

Digital onboarding is well established within the Fintech market, so when the world moved to a remote working environment, funding providers were ready.

Facilities can be set up within hours without a face to face visit with all the sign-up and due diligence happening digitally. Fintech has removed the necessity for lengthy contracts, debentures, or personal guarantees.

Speed of funds

For those businesses where operations are more capital-intensive the delay that Covid created was particularly noticeable.

It is therefore even more important to have a funder who can provide liquidity to even out peaks and troughs in cash flow. Through technology, credit insurance, and funding limits and costs can be given in a matter of minutes.

As the banks and larger funders focused on delivering government schemes and their existing books, we saw digital ecosystems move up the priority list.

New partnerships were announced to ensure all fraud, money laundering, and due diligence controls still happened.

Technology enables funders, such as ours, to connect with different insurance and credit guarantee providers, meaning businesses can estimate project costs and price into contracts from the beginning.

As an example, we’ve worked with recruitment process outsourcing companies that supply the IT and healthcare sectors throughout Covid-19.

Services like individual invoice finance ensure that these companies can continue to pay critical (healthcare) staff they outsource despite having a lack of cash flow, which is proven a real game-changer.

About Accelerated Payments

Set up in 2017, Accelerated Payments (AP) is a global SME invoice discounting platform. It provides finance to businesses with an immediate need for working capital to fund new opportunities for growth or keep the show on the road while they wait to get paid.

AP makes it simple, affordable, and quick to access funds. They don’t ask for personal guarantees, liens, long-term contracts, or onerous paperwork. Its fintech invoice finance solution means clients can access cash in as little as 24 hours.

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