Auto lenders are entering a period in which collections performance will depend on more than identifying borrowers who are falling behind. They also must account for what happens between the monthly statement and the receipt of payment. The Federal Reserve Bank of New York’s “Quarterly...
The biggest threat to a company’s working capital strategy is now commonly hiding in a perfectly drawn up sales contract, not an overdue invoice. Finance departments can automate collections, optimize cash forecasts and accelerate reconciliation. But when commercial teams negotiate longer payment terms to win customers, the cost of financing growth gets decided before...
Mpower Financing, an American lender focused on loans to international students, is reportedly shutting down. That’s according to a report Wednesday (Oct. 7) by Bloomberg News, which calls this one of the biggest corporate implosions related to President Donald Trump’s immigration crackdown. According to the report, Mpower had...
Experian has launched a new consumer reporting agency that helps financial institutions leverage consumer-permissioned cash flow insights to support underwriting decisions, the company said in a Tuesday (Oct. 6) press release. The Experian Cashflow Data Bureau operates under the Fair Credit Reporting Act (FCRA) and...
A credit file doesn’t capture every signal lenders can use to judge whether a borrower will repay. Roughly 25 million U.S. adults lack enough recent credit activity to generate a usable score, the Consumer Financial Protection Bureau (CFPB) noted last year, as PYMNTS reported. PYMNTS...
Stripe plans to strengthen its support for platforms by acquiring Parafin, an embedded financial products platform, the company said in a Wednesday (Sept. 30) press release. Parafin provides platforms with credit offerings for their small business customers. The company has helped more than 60,000 businesses...
Picture the CFO at a $300 million industrial distributor. For three years she paid her key suppliers on day 10 of a net 30 invoice and pocketed a 2% discount for the trouble. It was policy. Nobody had to approve it. Then, sometime last spring,...
The early bird used to get a supplier discount. These days, it may still be waiting for the customer to pay. Across North America, more businesses are receiving payments on the due date and rethinking when they can afford to pay their own bills. PYMNTS...
Merchant lending has traditionally been built around the sales a platform can see. Multichannel commerce is widening that view. A small- to medium-sized business (SMB) might collect orders through its own website, Amazon, Walmart, TikTok and other marketplaces while using the same inventory and staff...