Ario Platform, a Canada-based business financing company, has rolled out its Working Capital solution, a way to provide companies with a cash advance solution to provide their own corporate customers.
In a press release Thursday (June 13), Ario said its Working Capital tool connects businesses' corporate clients with up to $300,000 via its virtual financing solution. Companies upload information about the business to Ario's platform, which uses proprietary algorithms to provide financing approval in real time.
The solution considers companies' cash flow, Ario explained, as well as seasonality and other factors not always considered by traditional bank lenders.
Cash advances can be another way to manage working capital besides offering net terms to business customers, Ario said in its announcement, noting that can introduce "an immense risk in your customers by essentially extending credit for your own invoices." The company added that while the offering is white labeled under a company's brand, the financing process is managed by Ario, meaning the B2B company is not liable for the financial transaction.
The company also provides an accounts receivable solution to support businesses that need to chase down unpaid invoices, further promoting a healthier cash flow, as well as short-term and long-term invoice financing solutions for company clients.
The Working Capital solution joins Ario's existing product suit, which also includes Invoice Financing to finance unpaid invoices from lender partners of the platform.
"Business owners are using services like Shopify, QuickBooks Online, G-Suite and others to build out and modernize their businesses with technologies they could not create themselves," said Ario Co-Founder Brian McBride in a statement. "This evolution to digital platforms is the fundamental basis of the digital economy.
"Ario is joining that landscape of essential business tools by enabling any small business owner to become their own financial service provider under the brand they have worked so hard to build," he added.
Ario raised $10 million from venture capitalists last year, when it said it would use the cash to develop and deploy its white label solution.