Euler Hermes Collaborates On Same-Day Factoring

Euler Hermes has made a strategic investment in FinTech APiO, reports this week said, as well as a collaboration that will see the companies develop the ApiO.EarlyPay solution to connect small businesses with faster financing.

In a press release, the trade credit insurance company said its investment in and partnership with APiO will create the solution that integrates directly into small businesses’ accounting platforms, allowing firms to register and receive financing on unpaid invoices more quickly.

ApiO.EarlyPay uses big data analytics, artificial intelligence and machine learning to automate risk analysis and creditworthiness assessments of small businesses and their own customers.

“Our proprietary technology allows APiO to simultaneously provide same-day funding for SMBs and create a totally new, high-quality asset class for institutional investors,“ said APiO CEO and Co-Founder William Borghetti in a statement. “EarlyPay represents a game-changing way for SMBs to get working capital. The SMB market is desperate for a simple and easy working capital solution. Our solution is fast, simple and easy to use, and can fund in the same business day.”

“Partnering with APiO further demonstrates Euler Hermes’ position at the forefront of innovation and investment,” added Euler Hermes Americas President and CEO James Daly. “We’re excited to work together with the APiO team to create new ways to leverage our industry leading credit insurance products.

“This innovative application of credit insurance creates a win for APiO Marketplace investors who will now be better able to manage risk and improve overall portfolio returns,” he added.

The companies noted that Euler Hermes also provides credit insurance products to investors in the APiO marketplace allowing them to mitigate the risk against a small business’s default.

In an interview with PYMNTS earlier this year, Euler Hermes’ Daly explained why risk remains high in global trade, affecting small businesses’ risk of non-payment, and investors’ risk of borrower default.

“Today’s market conditions can change in the blink of an eye,” he said. “The only way to prepare for today’s volatility is to plan for all possible scenarios. Having the right partners and tools in place to create proactive risk mitigation strategies makes that possible.”