Fundflow Brings US Invoice Funding Success to Europe – Fundflow and Wirecard Launch Invoice Discount Tool
Two European FinTech companies join forces to launch an invoice discount solution.
Electronic payment company Wirecard and startup Fundflow announced on Friday, September 9 that an invoice discount platform will be deployed in Germany, allowing institutional investors to refinance their receivables so that companies can get a fund more quickly. turnover while awaiting payment of their invoices.
“For a small business, long payment terms and high accounts receivable can be a problem for them,” Fundflow chief executive Joachim Kaune said in a statement. âIn addition, chasing payments is a pain for many entrepreneurs. Instead, payments need to be quick, with the click of a button.â
He added that the new invoice discount tool was intended to “make life easier for small businesses.”
There are reports that Wirecard will provide the banking license and payment processing infrastructure for the platform on which businesses will be able to sell their unpaid invoices. They sell these unpaid invoices at a discount, but receive funds faster than they expected their corporate customers to be paid in full.
Invoices with payment terms of up to 60 days can be sold on the invoice discount platform, the companies said. In addition to this service, Fundflow and Wirecard will also offer invoice management solutions.
In another statement, Alexander von Knoop, a board member of Wirecard Bank, said the solution provides a service for small businesses that is normally only available to larger ones.
âThe transaction costs are often too high for established companies to offer invoice discounts to very small businesses,â said von Knoop. âIt is only recently that some US players have proven that transaction costs and risk can be drastically reduced by using technology. This creates an interesting market, and we are convinced that it could be just as deep in Europe.