Australian FinTech 3Pay has launched operations, connecting businesses to an invoice financing solution designed to support cash flow and prevent small businesses from being placed on hold by their B2B suppliers.
Reports in Dynamic Business on Monday (Sept. 16) said 3Pay has officially launched this week as a FinTech that pays businesses’ suppliers on their behalf on the invoice due date. Businesses can repay 3Pay over three months, reports explained, pointing to the FinTech’s focus on cash flow management as well as avoiding supply chain disruptions. Late payments often lead to a supplier placing that business customer on hold, forcing a business to source from a different and potentially more expensive vendor, sometimes causing delays in production or delivery.
Not only do late payments harm cash flow for suppliers, but placing customers on hold can also mean a loss of potential sales, the company said.
According to one of the company’s founders, who was unnamed by Dynamic Business, he saw firsthand in a former bank position the disruption caused by placing business customers on hold as a result of late invoice payments.
“Our customers had a business to run and couldn’t stop trading, so if they were put on hold by us, their A Supplier, then they had to go to their B Supplier to buy goods … even if it meant paying more for the goods at B Supplier,” the founder said, adding that B Supplier was charging more, while A Supplier was losing sales.
“Existing financing didn’t seem to provide the [required] piecemeal financing aspects … the ability for a customer to simply email an invoice and have it paid,” the founder continued. “They can now email their invoice to 3Pay and have it funded on [its] due date, then repay 3Pay over three months, either monthly or weekly.”
3Pay also enables vendors to include this invoice financing option at the bottom of their invoices, the company noted.
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