Finexkap, the French online invoice finance platform, has announced a deal with Sage which will allow the platform to tap into a user-base of around 600,000 small businesses. The pair have launched a new integrated product called “Sage Clic&Cash”, which will allow businesses to seamlessly address their cash flow constraints by raising funding against unpaid invoices.
600,000 of Sage's business users can now create a Clic&Cash account using the account software interface Sage or Ciel. One click will allow them to request a cash flow advance from Finexkap. Lending decisions can be made by Finexkap in less than 48 hours, thanks to the platform’s algorithm driven credit assessment process.
The integration with Sage may well enhance the efficacy of those algorithms, in that it will allow Finexkap to plug directly into the accounts of a funding applicant. Finexkap struck a similar deal with accountancy firm BDO in June of last year, while Sage partnered with MarketInvoice and Funding Circle in the UK only a month later.
Access to the wealth of data that is stored up in Sage is likely one of the reasons that Finexkap believes it will be able to offer attractive rates of funding with an “incomparable” fee structure. The platform says that the cost of the service can be adapted to meet with a business’ specific needs. APRs for the new product will range from 3.7 per cent to 7 per cent, which is indeed at the lower end of the short term funding spectrum.
“Having credit trapped between businesses is a systemic problem which significantly changes the health of French businesses and the economy in general,” said Claude Cordier (pictured above), director of product marketing at Sage. “We think that digital technologies will succeed in that area, where regulation has reached its limits: real-time analysis of data allows for a calculation of risk which is fairer and gives a boon to the availability of short-term financing at a competitive cost.”