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In a new PYMNTS interview, Jessica Cheney, vice president, product management and strategic solutions at Bottomline Technologies , talked about the importance of improving that cashflow situation, and the role intelligent technologies can play. CashFlow Complications.
The problem with this strategy, however, is that when every company is looking get paid more quickly but pay their own invoices later, B2B buyers and vendors quickly find themselves in a position in which their own cashflow goals contradict each other. Optimizing Payments.
Cashflowforecasting technology was once only for the massive enterprise, with resources aplenty to invest in such tools and the internal expertise to understand the complexity of it all. But cashforecasting is democratizing to smaller companies thanks to incoming technology, said TreasuryXpress CEO Anis Rahal.
PYMNTS December 2020 Global B2B Payments Playbook done in collaboration with Worldpay makes a simple, somewhat baffling observation: “Many B2B payments are [still] being made over the same rails that firms have leveraged for decades, utilizing familiar payment tools and being supported by the same pre- and post-payment systems.”.
Digitizing documents is key to optimizing workflows, but when it comes to the procure-to-pay space, not all digital invoices and purchase orders are created equal. XML invoices, which digitize the data on the invoice, are only a fraction of total invoice volume. What It Means to Be Digital.
. “It is interesting that in a healthy, growing economy, bad debt continues to plague the B2B markets,” said David Huey, president and regional director of U.S., Canada and Mexico at Atradius , which has just released new analysis on B2B payment practices across North America. Huey called this statistic “eye opening.”
A year ago, he said, he would have advised just one year of cash reserves. Adianta focuses on linking small businesses to working capital to finance inventory, and accelerate accounts receivable and payable turnovers, while the company also offers invoicing technology to help accelerate the financing process.
Some of the biggest industry trends, including faster payments, open banking and bank-FinTech collaboration, have found their ways into the Canadian market, the B2B payments space is not immune to disruption from these shifts. Faster Payments. Open Banking. Plus, those back office platforms aren’t always integrated with each other, either.
Late payments have caught the attention of regulators around the world, and of FinTechs exploring ways to accelerate cashflow for B2B companies struggling to make a profit when invoices are left unpaid. That could mean paying invoices too early, or allowing payment terms with customers to extend too long.
With Tradeshift securing a nine-figured fundraise, the supply chain payments company was the undoubted leader of this week’s B2B venture capital fundraise. But the company wasn’t the only B2B FinTech to secure fresh funding. million landed at B2B startups this week. Below, PYMNTS looks at how more than $292.5 TechnifyBiz.
The boom in B2B FinTech has introduced a flurry of new solutions and platforms from which corporates and small businesses can choose. Similar challenges have emerged in the traditional ERP’s ability to meet modern financial planning, cashflowforecasting, and risk analytics needs, he added.
The improvements will be in the fields of cashflowforecasting, payments, late payments, administration and payroll compliance. QuickBooks ’ new cashflowforecasting feature, the company said, will lend business owners 30- and 90-day forecasts for cashflow, using data held within their accounts.
Today in B2B payments, HSBC launches cashflow management tool, and TD Bank acquires equipment finance operations from Wells Fargo. AspireHR Teams With SAP Concur For T&E, Invoice Management. As small businesses and other companies struggle with cashflow management amid the coronavirus pandemic, HSBC wants to help.
Accounts receivable automation firm Invoiced is adding new features to its solution, including support for recurring payments and enhanced cashflowforecasting for CFOs. ” Last year, Invoiced announced a collaboration with GoCardless, which allows business users to accept direct debit payments in the U.K.
Cash is king, and today, cashflow management is an imperative function for large corporations and small businesses — many of which continue to struggle with the market volatility and business disruption caused by the COVID-19 pandemic. AscendantFX Eases Payment Instruction Hurdles. ”
Mastercard is launching a new service designed to make it easier for B2B vendors to accept virtual cards. Mastercard is collaborating with invoice-to-cash and accounts receivable technology firm VersaPay to deliver the solution, the companies noted. “As
TSU was launched by SWIFT in 2007 to promote the digitization of trade and supply chain processes, including liquidity management, cashflowforecasting and trade finance programs.
In its latest FinTech partnership, Lloyds Bank is set to launch a pilot of Satago Financial Solutions ' platform, which facilitates invoice financing. business customers of Lloyds, a six-month trial will see access to invoice financing via the Satago platform. The companies said they plan to complete the transaction this month.
There will also be automated responses to vendor and supplier inquiries about invoice payment status, approval status and short pay issues, the release stated. Intelligent Planning helps boost accurate cashflow predictions, which in turn can bolster sustainable growth through well-placed strategy, the release noted.
With FinTech innovators finally starting to give B2B solutions the attention they have longed for, there are now troves of platforms companies can access, from expense management to cashflowforecasting to supplier management. AvidXchange and Vroozi are only the latest B2B FinTech companies to collaborate.
” It may be no surprise, then, that a lack of adequate cashflowforecasting and management solutions may be contributing to small businesses’ negative perception of their banks. So, even when they receive an instant payment, as soon as it’s received, it’s already historical data.” In the U.S.,
Instead, VCs leaned conservatively toward a mix of B2B FinTechs operating in the financial management space for small businesses (SMBs) and in the treasury management market for mid-level and larger enterprises. It seems VC has cooled off a bit in the B2B FinTech front. All in all, investments totaled more than $178.6
Yet even when a supplier is waiting on an invoice to be paid, that business still has to pay its own bills. If a ‘buyer’ says, ‘Sorry, terms are 45 days, no 30 days,’ especially if they are your major customer, then all the cashflow planning is out the window.”. King noted that about half of invoices in the U.K.
based B2B startups took control of the funding reins this week, with five of the seven newly-funded technology firms based stateside. PYMNTS breaks down the latest B2B startup investment rounds below. Reports noted that so far, Tesorio has processed $56 billion in payments and 10 million invoices, using that data to forecastcashflow.
The middle-market AP automation solution, Invoice-to-Pay, is integrating the Mastercard tool in an effort to promote the use of virtual commercial cards in accounts payable, MineralTree said.
Reports Friday (May 12) said YayPay is integrating cashflowforecasting capabilities for companies that are unsure about their future cash positions considering all of their outstanding invoices. The company will provide its customers with an indication of how likely a business will pay its invoice and when.
Cloud accounting platforms may not be focused on future cashflowforecasting, but as Hewitt explained, these solutions offer a valuable starting point for cashflow management. “Cloud accounting providers’ focus is on making sure you pay your taxes, and you have your reporting. The Data Integration Starting Point.
With more bookkeeping software solutions available on the market, B2B FinTech firms have come to tackle this point of friction for small business owners. ” One of the biggest barriers to accessing that data is businesses’ continued reliance on paper, from physical invoices to checks. ” Mixing Humans With Data.
From AP teams managing vendors and chasing payment approvals, to AR professionals tracking down customers that haven't yet paid their invoices, professionals are using valuable time on non-strategic initiatives. Finance teams have mountains of manual tasks to complete every day. AI Steps in to Help.
“Small businesses in particular need cashflowforecasting, financial resiliency planning, advice on payment scheduling as well as consulting on applying for available government help. All of these things require reliable data in real time.” ” Supporting an Accounting Shift.
The first, direct way is through unlocking bank account data to integrate into back-office platforms for real-time views into cash positions and the opportunity to wield that data for cashflowforecasting and other analysis. But opportunities to stretch open banking even further are quickly emerging.
Formed more than two years ago, Skippr offers an invoice financing solution to small businesses, as well as a cashflowforecasting solution for borrowers. For the next 12 months we are going to deploy around $40 million of invoice financing and get most of the debt facility out the door,” said cofounder Alistair Lamond.
Digital and automated tools that provide accurate and real-time cashforecasting and visibility into financial standings will be valuable, but as Barker said, cashflow management isn’t simply about understanding where money is in one moment.
Corporate treasury technology company HighRadius is rolling out a new cashflowforecasting solution developed using artificial intelligence (AI) technology. HighRadius said that legacy strategy is “crippling corporate treasurers from making confident short-term and long-term debt and investment decisions.”
The Association for Financial Professionals (AFP) released its 2016 Electronic Payments Survey earlier this year and found that use of paper checks in B2B payments actually rose 1 percent compared to 2013 levels. About 44 percent of payments received are in the form of a paper check too, the report noted.
It was a week of (mostly) Series A funding rounds for B2B FinTech firms, as startups secured new funding to tackle various parts of the broader business-to-business (B2B) payment process. In all, nearly $142 million was placed with B2B startups, and PYMNTS breaks down all of the latest rounds below. based Mable has secured $3.1
The company said it focuses on customer satisfaction and relationship management, as well as employee productivity, while enabling more sophisticated cashflowforecasting. To date, the company said it has processed more than 150,000 invoices for its customers since launching in January.
Meanwhile, the trade credit insurance market has progressed along its own separate trajectory of innovation and FinTech disruption, with service providers targeting smaller vendors as potential customers that need to insure their invoices against nonpayment. ”
For corporate buyers, that meant stretching out invoice settlement times as long as possible. The director added that the majority of businesses are now prioritizing cashflow and timely payments , leading many companies to actually boycott the clients that do not pay their invoices on time.
Small business owners were likely hoping to see a boost in sales from tourism and the extra weekend day for shopping, but according to analysis from Hitachi Capital Invoice Finance, summer can be a difficult time for small businesses. ”To help bridge the funding gap, our data shows that SMEs are mow likely to seek cashflow finance.”
Wave’s approach to enhancing SMBs’ handle on cash management is a bit different. ” That means having information related to working capital options, invoicing, payments, and other cash management and accounting functions part of a single platform. We want these two things living in the same environment.”
SWIFT added that enhanced tracking capabilities support faster, automated and accurate reconciliation of payments and invoices, reduce FX risk exposure, and boost cashflowforecasting abilities.
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