Fintech iwoca Reveals How Addressing Inefficiencies with B2B Payments May “Unlock Cash” for SMBs

European Fintech iwoca reveals that a new B2B payments solution is bringing together instant payments, free transactions and flexible financing “to address cash flow problems for both buyers and suppliers.”

As mentioned in an update shared with Crowdfund Insider, online Fintech firm iwoca has noted that embedded finance products can “solve a number of problems SMBs and their customers typically face.”

As noted in the update, 80% of B2B businesses still “rely on slow and cumbersome bank transfers, while most of the remaining 20% is settled with inflexible and costly card payments.”

iwoca also pointed out that “due to the lack of immediacy in these payment methods, as well as the unavailability of finance offerings embedded into them, SMBs are owed £10,000 on average at any given time.”

The Fintech firm also mentioned that a new B2B payment solution that brings together the best of open banking and embedded finance would be able to “spare suppliers from the cashflow burden that outstanding payments impose on them.”

iwoca added that suppliers have “traditionally had to choose between either easy payments or flexible terms; they haven’t been able to get both.” Using this payment method – buyers “get a frictionless and streamlined payment process and flexible payment terms, whilst suppliers can unlock money tied up in their invoices”

iwoca further noted that funds from the supplier’s sales appear immediately in their account, and buyers can “spread the cost over 90 days, which they can schedule in a way that fits their cashflow the best.”

The company explained that the key to this innovative solution “is that digital finance provider iwoca provides the majority of its finance and payments products through its embedded partners, for example accounting software platforms, neo-banks or online marketplaces.”

This means they’re “readily available for businesses to access in the services they use day-to-day.” With this approach, applications can “get approved within minutes, and the likelihood of declines diminishes considerably.”

iwoca believes that this smooth payment experience and accessibility to finance “will be key in supporting SMBs post-Covid.”

To learn more about how to address issues in the  B2B payment industry, you can check out iwocaPay.

As covered, iwocaPay is a B2B payments solution that “blends the best of Open Banking payments and embedded finance to close deals and get suppliers paid.”

iwocaPay is described as “a shift from the status quo and traditional payment methods; suppliers get instant access to their funds rather than having to wait, they can offer built-in flexible payment terms without taking on the risk, and they can even control who pays the fees for the extra time.”

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