Fundflow and Wirecard launch invoice discounting platform for SMEs
Wirecard and fintech start-up Fundflow have launched an invoice discounting platform for SMEs in Germany.
The firms say that SMEs and freelancers can sell their outstanding invoices on the Fundflow website, which then enables refinancing with institutional investors. Wirecard Bank has provided its German banking licence and will handle the payment process.
Joachim Kaune, MD at Fundflow, says: “For a small company, long payment terms and high accounts receivables can bring them in difficulty. In addition, chasing payments is a pain for many entrepreneurs. Instead, payments should be prompt, at the click of a button.”
Alexander von Knoop, executive board member of Wirecard Bank, adds: “Transaction costs are often too high for established businesses to offer invoice discounting for very small businesses. Only recently, some US players have proven that both transaction and risk cost can be reduced dramatically employing technology. This creates an interesting market and we are positive it may be equally deep in Europe.”
The companies say that businesses can bridge liquidity gaps with Fundflow, as unpaid customer invoices with payment terms under sixty days can be sold on the platform. The seller gets the cash on the next day releasing otherwise locked up capital.
Optionally, Fundflow also offers full service invoice management for the customer. The service costs a small discount on the payout without minimum turnover or long term contracts.
Wirecard has been working hard this year.
In Europe, it is partnering with O2 Czech Republic to offer a unified payments solution to retailers in the country; and will also offer its customers Apple Pay in Switzerland.
Elsewhere, Wirecard reached a definitive agreement to acquire Citi Prepaid Card Services – giving it an expansion into North America. In Asia, Wirecard and Verifone joined forces to grow their payments business.