PSPs and FinTechs can add value to the service they provide to marketplace sellers and other merchants, by offering an instant cash advance against receivables due in the near future.
Going to the heart of one of the perennial business challenges – that of managing cash flow – Banking Circle Receivables Factoring enables PSPs to offer their merchants instant access to cash, while they wait for payment from customers or marketplaces. And there’s no credit exposure to the PSP’s business.
FASTER ACCESS TO CASH
The wait for payment of invoices, or marketplace settlement cycles, can cause real difficulties for merchants, especially smaller firms and start-ups. A delay in cash flow can hold back business growth.
Whether a company needs to pay suppliers, refurbish premises, invest in marketing or increase head count, a quick and simple advance could make the difference. But existing business lending models are slow, expensive and inefficient.
Banking Circle Receivables Factoring provides instant decisions and instant settlement. With the advance paid back in full once the invoice is settled or the payment is processed by the marketplace, there is no long-term payment commitment. The seller simply receives their funds instantly and payment is settled by the customer or marketplace at a later date.
INSTANT DECISION, INSTANT FUNDS
Banking Circle Receivables Factoring takes the pressure off any merchant with an invoice cycle of 30 days or more, allowing them to sell through marketplaces with even the longest settlement cycles and offer flexible payment terms when selling directly. This adds value to the PSPs service, and helps their merchants remain competitive in a fast-paced market.
Rather than waiting for up to 90 days to receive payments for goods or services sold, Banking Circle Receivables Factoring provides instant settlement for receivables due.
- Quick and cost-efficient access to money to support business growth
- Enhances business client relationships by offering cash advances without credit exposure to the FinTech
- Fast online application process
- Instant decision, instant settlement
- No hidden costs
- No application or closing fees
- Payments made to account in the name of the seller, providing a seamless, streamlined and confidential payment solution
HOW BANKING CIRCLE RECEIVABLES FACTORING WORKS
1. The merchant applies for Receivables Factoring via their PSP and provides details of the receivable due.
2. A decision is made instantly and, if the advance is approved, Banking Circle pays the merchant an agreed percentage of the full amount due, up to 95%. Payment is received instantly.
3. When the invoice or marketplace settlement is due, the buyer or marketplace pays the full amount directly into a dedicated Banking Circle settlement account. The account is held in the name of the seller, not Banking Circle or the PSP, providing the merchant with valuable confidentiality.
4. The settlement is made in just one payment, to one account, making it a streamlined payment process.