Muse launches procurement/invoice financing product
Business finance start-up Muse Finance has launched a solution that combines supply finance and invoice finance, the British company announced on Thursday (June 23rd).
According to a press release, the tool allows companies to pay foreign suppliers while having access to cash related to their pending invoices.
“The new business finance product was developed by Muse after recognizing growing demand for working capital expansion in the UK,” the company said. “By easing the financial burden on small businesses when paying their suppliers, as well as increasing flexibility when reimbursing funds, customers can better manage their cash flow and nurture supplier relationships.”
With supply finance, Muse pays suppliers on behalf of its customers for products shipped to the UK. This gives customers greater cash flow flexibility while they wait for their goods to arrive, with the option to repay the loan over 120 days.
And with Invoice Financing, Muse can also make it easier to reimburse supplies financing by allowing customers to claim 90% of the value of their invoices within 24 hours.
“This level of flexibility is increasingly important given new regulations surrounding Brexit and the fallout from the coronavirus pandemic, both of which have led to delays in shipping goods to the UK and increased demand. working capital,” Muse said.
Read more: FinTechs offer solutions for small exporters struggling to access finance
In an interview with PYMNTS earlier this year, Nelson Holzner, co-founder and CEO of MODIFI, spoke about the challenges small exporters face when trying to access finance.
Large global banks have no interest in bearing the cost of integrating small and medium-sized operations, while small banks have no experience in international trade.
Holzner said this has created opportunities for companies like his to help buyers and sellers finance and manage their transactions.
“That leaves us in a very nice space where the big guys don’t have the incentive and the little guys don’t have the knowledge to do the international part of the business,” he said. “That’s where FinTechs like us are really helping the customer close that gap.”