With the coronavirus pandemic driving demand for financing by small companies, early payment volume is higher by 208 percent month over month per insights from Taulia. The insights show that small businesses require predictable and reliable cash flow to operate their companies amid challenging times, according to a press release from the company.
Taulia CEO Cedric Bru said in the press release, “As economic conditions have deteriorated, especially credit markets, we have seen a tremendous increase in demand for early payments. It is our hope that during this time we can help small businesses, which are the backbone of our economy, access the cash they need to prepare for a better future.”
Over $4 billion in invoices were financed via the Taulia platform in just March. In addition, new supplier adoption jumped by 178 percent month over month. The company said the statistics show that small companies are seeking ways aside from traditional bank lending to receive financing to get working capital and overcome gaps in cash flow.
A supplier survey garnered the views of almost 20,000 respondents and determined that roughly 56 percent of suppliers that were large and small companies had an interest in asking for early payments. Taulia, for its part, said its unique value proposition lets suppliers of all different sizes become a part of the platform and get early payment.
One supplier, Rocky Schmidt of Karet Trading, said in the press release, “Having the ability to request early payment has given us certainty as we don’t know what the future may hold. Access to extra liquidity enables us to optimize our cash flow to keep the business running smoothly.”
In separate news, LSQ, an independent financing company, had rolled out its LSQ FastTrack supply chain finance platform per news in January. The offering is designed for firms of all sizes. It not only lets buyers optimize their working capital: It also provides on-demand invoice funding options to suppliers.