Cash flow is critical to the success and sustainability of small to medium businesses (SMBs), especially in challenging times such as the prevalent global COVID-19 pandemic.
Cash flow problems are the leading cause of insolvency for SMBs. For those that survive, 3 out of 4 experience cash flow problems, impacting their ability to recover and grow.
Extended payment terms are the main kink in the flow of capital. On average, SMBs would have an additional 42.8% working capital if they never had to wait for payment.
BizPay and Sypht join forces to solve SMB cash flaws
Now BizPay and Sypht have joined forces to make sure waiting for payment is a thing of the past. BizPay is an Australian-owned Buy Now Pay Later (BNPL) payment provider operating exclusively in the Business-to-business (B2B) payments space.
Sypht, founded by BCG Digital Ventures and BPAY, helps businesses extract valuable data from their documents through machine learning and artificial intelligence (AI), liberating teams from manual processes and giving them control of their back-office functions.
David Price, BizPay’s Global Chief Executive Officer, said once an invoice is approved, BizPay was under mandate to pay the full amount within 24 hours.
“That means businesses can use the extra capital to hire new people, pay for training, purchase inventory, or invest in other ideas that help their business grow and make the most of their income without worrying about credit control or slow-paying clients.”
“For their clients, having extended terms of four repayments over four months, the strategy also helps smooth out their cash flow,” Mr Price said.
Sypht and BizPay tech improve 24-hour turnaround
Sypht’s AI-driven data extraction and monitoring solution will enable BizPay to offer almost 85% straight-through invoice processing, further improving its current 24-hour turnaround.
It also improves data accuracy, reducing the need for manual intervention by 75%.
Sypht’s technology allows businesses to manage operational risk by providing cash flow visibility, scanning for duplicates and detecting potentially fraudulent activity within invoicing.
Sypht CEO Warren Billington said the agility of the two FinTechs is disrupting the traditional model by delivering a seamless and automated customer experience that eases invoicing.
“This could help small businesses with their cash flow as instead of waiting for days or weeks, they can get paid in minutes,” Mr Billington said.