For the emerging SMBs, managing working capital and maintaining credibility is an uphill task. There are companies that are coming up with innovative invoice solution for problems such as poor working capital, zero-cash visibility and friction in buyer-supplier relations. Some of the innovative invoice solutions offered by the B2B payment companies include pre-financing of invoices, invoice discounting and SME financing.
In this article, we discuss such companies that are coming up with these innovative invoice solutions:
1. Taulia: Here are the features and benefits offered by the company:
- The company offers early payment discounts to your entire supply chain, using your cash or third party cash. - Extend payment terms while still providing suppliers with access to cash - Strengthen supplier relationships
The company offers dynamic discounting by turning the invoices into revenue opportunities and increasing the supplier liquidity by automating early payments on 100% of the invoices.
2. Fundbox: The company aims to fix the small business economy by offering business owners a common-sense approach to cash flow management, powered by science. Based in San Francisco, California, the company offers business owners a simple way to fix their cash flow by advancing payments for their outstanding invoices. Advances are repaid with a clearing fee over 12 weekly installments. The fee is set automatically for each advance. Each repayment consists of advance repayment, transaction fees and advance fees.
3. Kickpay: Small businesses can sell their invoices to investors for a small discount. The company combines the ability to receive cash immediately with a next-generation payments platform to solve all receivable and cash flow issues. The user can import their invoices by uploading them manually or by connecting the accounting software. The user will then receive the offers in case their invoices are eligible for selling. The user can receive the money the same day; he/she can get the cash flow through checks. The user can choose to pay his/her bills or can invest more.
4. C2FO: The company provides an early cash flow opportunity. C2FO creates transparency and eliminates risk. The company aims to bring buyers and their suppliers together in a live marketplace without intermediaries to find a real-time rate for cash flow. Buyers and suppliers can collaborate on early cash flow at a rate that’s profitable for both parties. Buyers simply upload their approved invoices and establish their target return and cash available. Suppliers request early payment at a rate that works for them.
5. Invoice Interchange: Through this platform, businesses can trade their invoices and the funds will be transferred into your account within one or two days. The company has a pay-as-you-go service with complete price transparency. There are four simple steps to obtain the working capital:
- Submit your application - Auction your outstanding invoice(s) - Investors competitively bid for your invoices - Cash is transferred to your account within 24 hours.
6. BTCjam: BTCjam is a marketplace where people from around the world connect to borrow and lend using bitcoin. Through the platform, borrowers can also raise funds through the pre-financing of invoices.
7. Magellan: Magellan is a leader on the market of financial services in the health protection sector. The company offers suretyship combined with financing—a service enabling to acquire current financing based on sales to medical entities before the date on which the invoices become payable. The service gives the benefit of simple and prompt access to external financing, security on hospital debts and an opportunity for the supplier to be provided with an additional trade credit and financing.
8. BlueVine: The company is based in Palo Alto, California and backed by leading venture capital firms and private investors. The user can open a free account in two minutes. The application is completely online and paperless. There are no long-term contracts or termination fees.
The user can decide which invoices from what customers to submit, and only pay for what is used, so the user has complete control over his/her funding needs. The company works with the most popular accounting software like QuickBooks, Xero and FreshBooks.