Working capital solutions that are based on accelerating the payment cycle can provide businesses with a way to access the cash they need to fund their operations and invest in growth opportunities. These solutions typically involve selling a company's accounts receivable to a third party, such as a factoring company, in order to raise cash in advance of when the customer would normally pay.
Key advantages of working capital solutions
One of the key advantages of working capital solutions that accelerate the payment cycle is that they can provide businesses with access to cash on a more timely and flexible basis than traditional forms of financing, such as loans or lines of credit. For example, if a company has a customer who typically pays their invoices within 30 days, a factoring company might be able to advance the company the majority of the invoice amount within a few days, allowing the company to access the cash they need much sooner.
In addition, these solutions can be particularly beneficial for businesses that may not have the credit history or collateral to qualify for traditional forms of financing. Because the financing is based on the creditworthiness of the company's customers, rather than the company itself, it can provide an alternative source of financing for businesses that may not be able to access other forms of financing.
Overall, working capital solutions that accelerate the payment cycle can provide businesses with a convenient and flexible way to access the cash they need to support their operations and invest in growth opportunities.
Qube Added Value
- Qube Financing (and its affiliates) have developed the Qube platform, supported by its proprietary PRI® inside infrastructure, front-end to back-end fully automated receivables financing platform (“Qube Platform”), as one of the earlier Fintech 3.0 initiatives in the market and is fully equipped to be the winning platform of the third wave.
- This Qube Platform is fully operational and has been fully adopted by institutional investors, including the standardized procedures, ‘modus operandi’ and underwriting process steps & criteria.
- Qube targets European SME and Mid Market Corporates with a fully standardized approach as well as tailored solutions for multinationals, predefined underwriting criteria that are agreed with institutional investors and supported by PRI® inside and the add-on credit & collection management application PRI® CrediSoft and PRI® Supply Chain.
- Offering consolidated multi jurisdictions multi operating companies fully automated working capital financing solutions based on invoiced turnover, whereby PRI® inside directly interfaces with the Corporate's ERP systems, the Connection.
- The Qube Platform benefits from a modular design and standardized processes and legal infrastructure.
- US version of PRI® infrastructure can be calibrated for US time zone and jurisdiction.