The companies announced news on Wednesday (Sept. 20) that PeerPay, which operates FloFunder, is working with CaFE in an effort to bring greater transparency and predictability into small- and medium-sized business cash management. The cash flow management solution offered by CaFE can now be linked to the peer-to-peer (P2P) invoice financing solution offered by FloFunder, streamlining the process by which SMBs manage cash and access financing when they need it.
“Cash flow monitoring is a useful application but is even more useful if it has a solution attached,” said FloFunder Founder David Ireson-Hughes in a statement, referring to the company’s eInvoice financing solution. “By joining forces, [SMBs] and their advisors can [not] only predict a problem in advance, but also find the funding required to prevent a crisis from becoming more serious.”
“Keeping on top of cash flow is one of the biggest challenges for small businesses and yet one of the hardest for an accountant or bookkeeper to support without easy access to up-to-date information,” added CaFE CEO and Founder Makoto Fukuhara. “CaFE solves that problem technologically and, when applied with FloFunder, allows the advisor to proactively suggest a solution. Thousands of small businesses could now be saved from the withering effects of an unforeseen cash crisis.”
In the U.S., cash flow management is a problem for most smaller businesses, according to a June report from Dun & Bradstreet and the Pepperdine Graziadio School of Business and Management. In that report, analysts found that 66 percent of U.S. SMBs reported having working capital challenges in the last three months — the highest rate seen by the report in five years.
Delayed payments, a problem that often leads businesses to turn to eInvoice financing, is the top culprit of cash flow problems, the Dun & Bradstreet report found: More than a fifth of SMBs said accounts receivable payments had slowed over the last three months.