Banking Circle, the global scale financial utility, has launched Banking Circle Receivables Factoring giving Payment Services Providers (PSPs) and FinTechs another add value for their client offering. Through this new lending solution, PSPs can now offer their merchant customers the facility of instant settlement of receivables due, without waiting for settlement cycles or invoice due dates.
As a next-generation provider of mission-critical banking infrastructure – from payments to lending – Banking Circle is providing PSPs with the tools to offer their customers a unique solution to the age-old business problem, that of managing cashflow. With Banking Circle Receivables Factoring, a lending decision is made instantly, online, enabling the merchant to receive payment immediately. And once the merchant’s debt has been settled, repayment is made directly to Banking Circle, into a dedicated account in the name of the merchant. This means the PSP can offer its merchants a seamless and streamlined service, without having to take any of the risk. The merchant also benefits from a confidential solution.
Anders la Cour, co-founder and Chief Executive Officer of Banking Circle commented, “With settlement cycles of up to 90 days on some invoices, merchants can be out of pocket for up to three months after dispatching goods to a customer. This can cause potentially serious problems with paying suppliers, employees and landlords.
“For SMEs trading online, long payment cycles can therefore be a stumbling block and severely limit a merchant’s potential for growth as it cannot remain competitive in the digital market. Through Banking Circle Receivables Factoring, PSPs can offer merchants instant settlement of payments due, without them having to wait for the buyer or marketplace to pay.
“Through Banking Circle, PSPs can ensure the merchant receives their payment instantly, keeping cash flowing and the business competitive.”