OnlineCheckWriter and Plexe Team as Businesses Struggle to Find Capital

B2B payment platform OnlineCheckWriter.com has teamed with Plexe to help businesses access working capital.

The recently announced partnership lets businesses access Plexe’s line of credit after verifying business information and a valid bank, the two firms said.

“Users can choose their desired tenure for payment, making it easier than ever to secure the necessary funds,” the companies said in a news release.

“Once approved, businesses can withdraw funds directly to their linked bank accounts immediately. This efficient process enables businesses to quickly access capital, seize opportunities, and overcome financial challenges effortlessly.”

The partnership is happening at a time when access to business financing remains a substantial hurdle for small and medium-sized businesses (SMBs), with many finding it increasingly harder to secure traditional funding from banks.

According to a recent study by PYMNTS Intelligence and Cross River, the number of SMBs that said they had access to business financing sources fell from 42% to 39% between April and July. Even larger, more financially stable firms faced challenges in getting financed, with only 46% reporting access to business financing in July, compared to 59% in April.

The study shows that smaller SMBs — those that generate under $1 million in yearly revenue — are especially vulnerable during tough economic times, with almost 10% of these smaller firms saying they consider themselves at risk of closure.

On the other hand, larger SMBs — firms generating revenues between $1 million and $10 million per year — are more stable, with just 4.8% identifying themselves as at risk of closure. This indicates that smaller firms face tighter short-term working capital and limited financing options versus their larger counterparts.

“Drilling down into the study further reveals that the finance and insurance industries are the most vulnerable, with 22% of SMBs in these sectors reporting a risk of closure,” PYMNTS wrote last week. “Manufacturing and arts and entertainment sectors also face higher-than-average closure risks, at 16% and 13% respectively. These industries have less working capital and access to financing than others, making them more susceptible to economic downturns.”

On the flip side, findings from the PYMNTS Intelligence and Visa report “The 2023 Growth Corporates Working Capital Index” show that working capital has been key to middle market firms’ business growth, with 70% of corporates that used working capital solutions enjoying improved business metrics as a result.

“In fact, top-performing growth corporates made an average $3.3 million annually in accounts payables (AP) savings, reduced days payable outstanding (DPO) by five days and improved cash conversion cycles,” PYMNTS wrote last week.

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