FloFunder – revolutionising Working Capital Finance for SMEs

The Problem

Late payment of invoices remains a continuous problem for SMEs.  It potentially causes business failure as cash-flow cannot keep up with the company’s financial needs.  It is staggering that about half of all UK invoices are currently overdue (estimated in 2015 at £55 billion) and it takes on average 72 days for invoices to be paid.  This is disruptive for business and makes it very difficult to plan.  The FSB have recently published survey findings on how this practice of paying invoices late affects our SMEs, and the results sadly show the situation is not improving.

In recent times, banks aren’t lending to growing businesses like they used to and SMEs are now beginning to use the Alternative Finance Market for commercial loans and invoice trading.  Most attention in the alternative finance sector is on peer-to-peer lenders and equity crowdfunders, but there’s another, much older, area of nonbank small business finance that has also grown in importance in recent years, being the invoice finance and asset based lending industry.

Invoice trading is now the 4th most popular form of Alternative Finance (reference NESTA & Cambridge Centre for Alternative Finance report 2015), and looks set to grow exponentially to £3.5bn by 2021. The Alternative Finance market offers a fast-growth sector where technologically innovative solutions will succeed – and that is where FloFunder comes into its own.

The Solution

FloFunder is an Invoice Trading Platform that is offered as a Software-as-a-Service (SaaS) solution for Accountants, which can be white labelled, to enable business Invoice Trading, where client companies with a short term need to free up cash flow over 30 – 90 days, which is tied up in verified invoices, come together with clients seeking risk-managed, investment returns on their spare cash holdings.

The service offers a disruptive approach to traditional Invoice finance by building trading communities based around Accountancy Practices, where both sellers and funders are known, to reduce risk and increase trust and uses automated technology to provide a simpler and cheaper alternative to existing methods for all parties.

FloFunder platform technology is innovative, ground-breaking and unique.  As important as the technology is the regulatory and legal framework for the solution, and we have verified that our service does not require FCA regulation.  For good order, FloFunder is registered with the FCA for anti-money laundering.

 

The Benefit

FloFunder is one of the few finance solutions that genuinely benefits everyone involved:

  • the company that needs to improve its short-term cash flow, only when needed, for a small fee
  • the individuals or companies who are seeking short term, managed risked investments for a greater return than currently achievable through traditional forms of investment, and
  • Accountancy Practices who are looking to offer their clients value added services that distinguishes them from others, and really seeks to help their clients achieve their business goals

For more details on the service visit http://flofunder.com or call one of our team on 0208 004 6910.

 

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