The fifth largest accountancy firm in the world, BDO, has partnered with French invoice financing platform Finexkap.
The agreement will help BDO’s customers access financing solutions quickly through an innovative factoring solution. BDO reported that nearly two thirds of its small business customers have said that they have a need for funding and many of them are unable to easily access short term financing. Whereas businesses applying using the Finexkap website can get financing within 48 hours.
The offer, that is already available via the Finexkap platform, will be incorporated into the BDO client experience and it is aiming to bring more simplicity and save time for the businesses. The set of management tools available to BDO clients is intended to better anticipate funding problems.
Rolland Nino, CEO of BDO, commented:
“We welcome this innovative partnership that provides a simple answer to the needs of our customers, both in terms of funding and new digital applications.”
“We are very proud of the partnership with BDO that allows us to reach a wider range of French SMEs with cash needs. Through this partnership, the business leaders that appeal to BDO will, in 48 hours, assign their bills and get cash on the account of their society.”
In November the company completed a $22.5 million funding round, $4.1m of which came from GLI Finance. The platform has a unique structure. The invoices are not financed through capital supplied by retail and institutional investors. Instead, the receivables of small businesses are purchased through refinancing vehicles that are in turn managed by Finexkap Asset Management.
We have seen a surprisingly small amount of participation from the accountancy firms in alternative finance space. PwC is the only accountancy firm to have partnered with alternative finance platforms in the UK. In October last year the company partnered with Funding Circle to forge a system of reciprocal referrals. In the same month the accountancy firm also partnered with MarketInvoice. Accountancy firms seem like an obvious partner for platforms. Accountants are one of the main points of contact for small businesses and so firms are perfectly placed to refer businesses onto funding platforms when they encounter a need for access to capital.