Solving the working capital issue for SMEs

Solving the working capital issue for SMEs

RationalizationUnlock sales potentialPlug and Play

The problem

The costumer had to wait too long for their receivables and had to hire someone full time to manage the debtor and invoice collection process.

A company was faced with the challenge of optimizing its debtor and invoice collection process in order to receive the money faster and improve its cash flow. However, smaller companies have limited resources and the customer was faced with the decision to hire an employee to manage debtor and invoice collection or to find another more cost-effective solution.

The solution

The customer decided for an easy online-service, helping companies on-demand to get their cashflow managed, by a smart outsourced debtor and invoice collection process

The solution was an online service, where the customer could register and upload his invoices. By adopting the online identification process, a user does not have to go to the post office and waste time in a queue. After that the customer can upload all invoices. The fees are displayed directly to the customer. In the next step, the invoice is checked and as the solution provider carries out the invoice verification process, the risks that are taken on are limited and controlled and kept to a low level, which allows to operate smoothly for the long haul. When the customer submits the invoice, the money is transferred on the same day, at the latest on the following day. For the customer it was the cheapest and fastest solution for his current situation. Additionally the customer could use the invoice generation tool provided by the service provider to all customers to create proper invoices.

Insights

Stumbling blocks

  • Online identification providers can sometimes be slow. 
  • At times, it is difficult to get hold of the debtor to verify the invoice. 

What had the customer tried before?

Sought financing from banks or other SME financing providers.

Additional challenges at the customer

  • No time to create an invoice properly 
  • No time/expertise to do debtor management 
  • Limited coverage from insurance 

What criteria were important to him?

  • The ease of use for technology 
  •  The whole service package 
  •  Fast and professional customer service

Business

Benefits

  • Faster cash flow cycle
  • Reduced needs to personnel hence reduced costs
  • Additional inhouse invoice generation tool which could be used by all customers

The project schedule

  • A customer has to register on the website, going through an online identification process, uploads an invoice (or several invoices).
  •  The invoice will be verified and gone through the risk management process and if approved, the money will be paid out within 24 to 48 hours. 

Project maturity level

Used company-wide

Project duration

Keine Implementierung erforderlich

Project cost
(digits)

3

Running costs
(per month, digits)

3

Involved employees
(Project phase, FTE)

0.5
FTE

Technical

The project schedule

There is no implementation needed, as it´s an online service.

Integrations or APIs

The standard process does not require any integration or API, unless a customer chooses to be integrated with our accounting tool or becomes an affiliate

Where is the data stored?

AWS Frankfurt am Main

Providers

Madeline Li

"If a customer seeks short term loan, then we are not the perfect match, but if it comes to look for way to have the receivable paid back earlier and speedy up the cash flow cycle, we're number one."

Madeline Li

The information may of course vary in individual cases. Please contact the provider for an assessment of your project.