The increase in POS credit facilities is being pushed along by various startups who offer latest gen tech to evaluate small business credit risk in near real-time. If a buyer can quickly gain a revolving loan by connecting their accounting software to a fintech, or a seller can offer better terms to a buyer, increasing the sale and get paid faster, then the liquidity flows for e-commerce are a bit more greased, let’s say.
Fundbox is a 2013 startup based in San Francisco that provides such capabilities. This article appears in Forbes and discusses the gap between consumer tech and world of B2B, which remains mired in paper, even though the available capabilities for transforming these B2B cash cycle processes are more available than ever.
“This has led to a widening gap between what B2B customers experience as everyday consumers and what they contend with in the workplace and in their businesses. Yet, faster, more reliable transactions benefit B2B e-commerce companies on both sides of the payment equation: buyers and sellers.”
We discussed many of the same points in our recent membership Viewpoint titled B2B Payments: More Options Than Ever Before. As we enter the era of open banking, both market (U.S.) and regulatory (EU, etc) forces are clearly driving innovative, technology-based solutions to be available for all business sizes. That applies not just to payments but the underlying credit layer that facilitates open account trade, which is fundamental to e-commerce growth.
“Technology and automation are providing more options for B2B e-commerce payments. Until recently, credit underwriting and payment tools had not been developed to get sellers paid at the moment of sale and buyers the credit they want in order to purchase. But artificial intelligence and machine-learning-based platforms are changing this, via data-driven insights.”
The piece is written by a Fundbox executive and goes on the make a real-time payments connection, although the overall point of the posting is facilitating the ability to buy when the business needs to buy, and not about new payment rails. It is worth a read to remind businesses what is already available and gain some perspective on alternative methods of liquidity in this new age. The basic point is that one must adopt some level of tech in order to open the lanes to broader advantages.
“Now is the time for B2B e-commerce to take advantage of new payments technologies. Business customers can now expect to do deals quickly in an evolving global landscape, getting fast access to the credit they need to thrive.”
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group