Kickpay, a startup fresh from Y Combinator’s latest batch, is offering an open marketplace for financial assets, primarily focusing on outstanding invoices. Kickpay is offering a solution that will assist businesses in automatically selling their uncollected revenue. This basically means that if a company is performing a service or shipping a product, the company can receive the income for the service within the same day. Kickpay is using a combination of data, design and technology to simplify payments processes and reduce credit and fraud risk.
Kickpay is poised to change the way businesses manage their cash flows, financing options, and B2B oriented payments. By taking the marketplace approach, Kickpay brings a market oriented fair pricing scheme. This helps avoid the highest amounts being charged on each transaction. The company’s marketplace for suppliers and businesses helps avoid some major issues that have been noticed in the past.
As usual, what is being witnessed is that big businesses place orders to suppliers and impose a strict deadline date as well. When suppliers perform their service and generate the invoice, these big businesses pay after 30, 60, or even 180 days. Hence, suppliers face the heat in terms of supply deadlines, costs of buying the supplies, payment to employees, rent, and other expenses. Now considering the perspective of small businesses, they are not able to get credit from suppliers easily and are not able to pay even after 180 days, all because of the high charges being set in the marketplace by the big businesses.
Kickpay wants to completely change this scenario by offering a secondary marketplace for invoices. Companies can post details of confirmed invoices over this marketplace. These invoices are then sold to investors who help the stakeholders get the necessary capital required upfront. To collect invoice details more effectively, Kickpay can also access a company’s banking software. This financing scheme, generated indirectly from investors, greatly helps the SMEs and other small businesses.
Kickpay has secured angel funding from executives of companies such as PayPal, Mint and Palantir.