Irish fintech partners with Virgin Money for invoice financing solution
Irish bill finance company Accelerated Payments has been selected by Virgin Money in Britain to help its millions of business customers solve their cash flow problems.
The Dublin-based start-up, which is also on the verge of completing a € 2million funding round led by institutional investors, partners with the lender to enable clients to receive upfront bill payments .
The Expedited Payments partnership is part of Virgin Money’s new working capital health proposal. Last week, the bank, which has 6.5 million customers, launched its new M Account for Business, designed for entrepreneurs, start-ups and small businesses with annual turnover of less than $ 1 million. pounds sterling and who prefer to do their banking digitally. .
Expedited Payments was founded by Ian Duffy, Colm Devine and Dylan Martin four years ago. He has developed a portal that allows users to upload and select invoices for funding. Once approved, payment is typically advanced within 24 hours, which means businesses don’t have to wait months to get paid from vendors.
Bill financing is nothing new, but speaking to the Irish Times Mr Devine, Accelerated’s business development manager, said Accelerated has sought to make it more accessible, flexible and affordable.
“Traditionally, credit committees have tended to look at the bad things when they assess whether a business should receive an early payment, for example by focusing on balance sheets. But what we do is see if they’re selling to a good debtor because that’s really where the risk is, ”he said.
“We also operate on a pay-as-you-go basis rather than tying companies to long-term contracts,” added Mr. Devine.
Approximately 60% of customers using the Accelerated platform are new to invoice financing and vary in size from small to medium-sized businesses to large enterprises, who do not wish to be tied to a facility. The company provides payments ranging from € 10,000 to € 3 million and last month took a significant step forward by having funded € 500 million in invoices since its inception.
FinTech currently employs 36 people, but intends to hire an additional 10 when the round is completed. About 70 percent of business originates from the UK, with the company also having customers in Ireland and Canada. He is considering a move to the United States shortly.
Mr Devine said the partnership with Virgin would give Accelerated a bigger platform in Britain and help more companies grow and go global.
“To be honest, this is a bit of a blow to us as we only started the business in 2017 and this is our first major partnership. Virgin is one of the fastest growing UK banks and that obviously gives us access to their 6.5 million customers, so we’re very excited about it, ”he said.
Accelerated, which is focused on growing its loan portfolio to € 50 million, secured a € 20 million senior debt line last year from asset manager Channel Capital Advisors.
Speaking on the tie-up with the Irish company, Graeme Sands, acting head of corporate banking services at Virgin Money, said Accelerated Payments’ bill financing solutions would offer its customers help in resolving customer issues. cash flow that occurs regularly for many businesses.
“Having this kind of innovation will be a powerful tool for customers,” he said.