Hydr, the U.K.-based FinTech, has rolled out its new proprietary invoice program, allowing small businesses to optimize their cash flow, a press release said on Monday (May 24).
Hydr works with smaller businesses to manage their cash flow with fully digital onboarding, real-time funding decisions, transparent terms and fixed fees. To get its work done, Hydr has partnered with Xero, the small business platform, which will allow for more seamless integration.
The company pays 100 percent of an invoice within the next day. However, a “competitively priced fixed fee” is taken out as well.
Nicola Weedall, co-founder at Hydr, said it shouldn’t matter about a business’s ability to wait for payment — its success shouldn’t depend on that.
Weedall said she’d “seen first-hand” the way managing cash flow could transform a business, so she wanted to “remove the barrier of waiting for payment by paying invoices in full within 24 hours.”
“Our technology securely simplifies the whole process, end to end, with transparency and simplicity at the heart of our proposition,” she said, according to the release.
Hydr co-founder Hector Macandrew said they created the company “to change how we think about two things; the almost cultural acceptance that late payments just happen in this economy, and that invoice financing is only considered as a last resort.”
“With Hydr as your partner, you never have to worry about long or late payments again,” Macandrew said. “Invoice financing done properly is a powerful tool to optimise cash flow, enabling business leaders to plan their future with confidence.”
FinTechs and alternative lending means have opened up new ways for B2B financing to get to various businesses. There were some ways like factoring which involves a supplier waiting for payments to arrive so they can sell the invoice to a financier at a discount. Then there was supply chain financing, which worked with corporate buyers initiating the invoice funding process for the vendor.