DENVER--(BUSINESS WIRE)--Finstro, a technology-powered provider of trade credit and payment solutions for B2B commerce, is planning to capitalize on growing digital adoption momentum in the business-to-business (B2B) space as it rolls out its card solution and an integrated ERP solution designed to support the supplier/buyer trade relationship.
According to a 2018 Goldman Sachs Global Technology Equity Research report, paper-based payment processes in U.S.-based B2B commerce accounted for ~70% of transaction volume, and cost businesses - many of them small businesses - more than $2.7 trillion in administrative costs. However, Finstro CEO, Brad Prout, notes that the past 15 months have seen a growing shift towards B2B digital payments in the U.S., and this has created a window of opportunity for Finstro’s well-tested business model to expand.
“Since early 2020 businesses of all sizes had to give AR and AP management more attention as they navigated through the impact of the COVID pandemic. The adoption of digital processes in the order-to-cash cycles can create workflow efficiencies and reduce working capital to the benefit of both suppliers and their business customers. We expect to see these disruptive trends continue in U.S. B2B markets, and suppliers who adopt technology-driven solutions will have a competitive advantage when providing business customers with more flexible trade credit terms,” said Prout.
According to the Goldman Sachs report, global B2B payment flows are expected to climb to $200 trillion by 2028. North America makes up 20% of the B2B market globally, representing $26 trillion of payment volume.
Furthermore, according to a 2020 survey by the Association for Financial Professionals (AFP), suppliers and businesses large and small are already realizing the benefits of electronic payments. Sixty percent (60%) of respondents said they are either very likely or somewhat likely to convert the majority of their B2B payments to suppliers from check to electronic payments.
“Without doubt we are at the early stages of a revolution in B2B trade when it comes to capital flows between suppliers and buyers, and this will mean huge opportunities for businesses of all sizes and in all industries,” said Prout. “We are confident that our proven technology, global infrastructure, and experienced leadership team will be at the forefront of this shift in the U.S. market, and we look forward to leveraging our deep experience to enable businesses to improve the way they trade and grow.”
Finstro recently announced its intention to expand globally and launch in the U.S. market.
Finstro brings together innovative thinking, experience, and technology to deliver trade credit and payment solutions to suppliers and their business trading partners large and small.
Built on a proprietary, data-driven, and automated credit decisioning engine that utilizes internal and external data around credit, identity, payments, fraud, financial accounts and bank statements to uniquely solve risk, cashflow and client onboarding challenges that exist in supplier/buyer relationships, Finstro’s solution is industry agnostic. It is well-suited to situations where buyers have seasonal or longer inventory and revenue cycles than the payment terms required by their suppliers. Strong industry use case examples include agriculture, printing, packaging, industrial supplies, professional services, wholesale grocery, chemical and electrical equipment.
The Finstro platform is API enabled and able to integrate directly into existing supplier ERP systems to provide a configurable, 100% digital process for suppliers and their buyers.
Since its inception in Australia in 2014, Finstro has supported more than 7,000 small and medium-sized business (SMBs) and provided over AUD $1 billion in capital. Led by an experienced leadership team, and with more than 80 fulltime staff of which around 50% are IT professionals, the company has received many awards in Australia for innovation, technology, firm culture, and business acumen including the Australian Business Awards (ABA) 100 for Business Innovation in 2020, the ABA 100 award in Business Technology in 2020, the Sydney City Business Awards for Outstanding Employer of Choice in 2019, and the New South Wales (NSW) Business Chamber Awards for Outstanding Employer of Choice in 2019. Finstro was also a finalist in two categories for FinTech Australia’s Finnie Awards 2018 – Emerging FinTech Leader of the Year (under 35) and Excellence in Business Lending – as well as a finalist in the 2019 MyBusiness Awards for FinTech Business of the Year.
Finstro’s headquarters are in Sydney and the company has a presence in Australia, Manila, Vietnam, New York, Atlanta, Turkey and Brazil.
For ongoing updates on the company and its plans for the US market, follow Finstro USA on LinkedIn at https://www.linkedin.com/company/finstrous/