Hopscotch rolls out invoice financing feature
Payments platform Hopscotch, which works with freelancers and small businesses, has announced an extension that includes a tool for users to fund bills with two clicks, a Press release said.
The company will also offer a tool for businesses to unlock revenue from unpaid invoices and get paid on demand.
According to the report, Hopscotch Flow will provide a way for businesses to avoid cash gaps and make better decisions. This is in response to the number of small businesses created after the pandemic, many of which now need tools and financial resources.
Small businesses, the company noted, have not been adequately served by banks and legacy payment platforms.
“The odds are against the smaller companies, but we’re still betting on them,” said Reed Switzer, CEO of Hopscotch. “Hopscotch Flow has been our most requested feature; with it, our payment ecosystem offers our users a high level of flexibility and control in managing their cash. Flow is our first step into credit products and we believe it will be a valuable resource for the traditionally underserved freelancers and small businesses.
The statement notes that predatory transaction fees have increased in recent months, reducing revenue and time for businesses. And unpredictable payment cycles have hurt companies’ ability to manage cash flow.
Switzer spoke to PYMNTS earlier in the year, saying the presence of instant payment platforms like Venmo has added to the expectations of new business owners.
Read more: Gig Economy Companies Turn to FinTechs to Enable Instant Payments
“This new generation of talent has gotten used to instant payment transfers in their personal lives, and now they want those same fast, free services for their businesses,” he said.
In March, Hopscotch announced a private beta along with a $6.1 million starter expansion to bring its total funding to $9.95 million.
Switzer said his company’s focus will come from the fact that businesses need to operate without having to wait or pay to access the money they’ve earned. And he added that many business owners just want to get paid in the easiest way possible, with as little friction as possible.
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