The company has been operating in Asia and Europe.
The release said Finstro will be working to put out a card and ERP solution to help with risk, cash flow and the hurdles with client onboarding that come up in buyer and supplier relations.
“Over half of all suppliers in the US have to provide goods and services to their business customers with trade credit to effectively compete,” said Brad Prout, founder and CEO, who also recently relocated to the U.S. “Finstro has more efficient tools to extend and manage this credit. Suppliers remove risk and get paid instantly and buyers gain access to more flexible payment options and terms. Ultimately, this removes friction from the B2B commerce relationship and allows suppliers to focus on their core business.”
Finstro’s platform is an application programming interface (API). The platform is able to integrate directly with other ERP systems, intending to provide suppliers (and their buyers) a wholly digital process.
Per the release, the technology platform boasts at its core an “automated credit decisioning engine,” which works with data on credit, identity, payments, fraud, financial accounts and bank statements. This data is then used to assess risk decisions.
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“Suppliers can adopt the Finstro solution to generate a sales advantage over their competitors while at the same time focusing on their core business,” Prout said, according to the release. “The value proposition to both the supplier and the business customer is very compelling. As we emerge from COVID-19, both buyers and suppliers need accessible, flexible and relevant trade credit solutions that can strengthen and grow their businesses.”
According to Finstro, the company has been looking into trade credit, finding that the trade credit model could create pain points for users when the process isn’t handled strategically.
