Payments platform Hopscotch, which works with freelancers and smaller businesses, has announced an expansion including a tool letting users finance invoices in two clicks, a press release said.
The company will also offer a tool for businesses to unlock revenue from unpaid invoices and get paid on demand.
Hopscotch Flow, the report said, will offer a way to let businesses avoid gaps in cash flow and make better decisions. This is in response to the number of small businesses created after the pandemic with many of them now needing financial tools and resources.
Small businesses, the company noted, have not been served in an adequate way from banks and legacy payment platforms.
“The odds are stacked against small businesses, but we’re still betting on them,” said Hopscotch CEO Reed Switzer. “Hopscotch Flow has been our most requested feature; with it, our payment ecosystem gives our users a high level of flexibility and control in managing their cash flow. Flow is our first step into credit products and we’re confident it’s going to be a valuable resource to traditionally underserved freelancers and small businesses.”
The release noted that predatory transaction fees have been up in recent months, cutting down on revenue and time for companies. And unpredictable payment cycles have hurt businesses’ abilities to manage cash flow.
Switzer spoke with PYMNTS earlier in the year, saying that the presence of instant payment platforms like Venmo has added to newer business owners’ expectations.
“This new generation of workforce talent has grown accustomed to instant payment transfers in their personal lives, and now they want those same fee-free, fast services for their businesses,” he said.
In March, Hopscotch announced a private beta along with a $6.1 million seed extension to bring its total funding to $9.95 million.
Switzer said his company’s purpose would come with the fact that businesses have to operate without having to wait or pay to access money they earned. And he said many business owners just want to get paid in the simplest way possible, with the least amount of friction.