If there is one thing that’s sure to anger business owners and even keep them up at night, it’s late payments. This issue widely affects SMEs that are particularly vulnerable to cashflow problems, and the statistics show this trend is not getting better over the years (according to the study conducted by BACs in December 2018).
By creating a single platform that connects these frustrated corporations directly to suppliers and financial institutions, Paygevity has for sure granted their wish to receive payments on time!
Optimising working capital management
This New York-based startup launched by Neil Rothenberg, a former banker in Wall Street, functions like a marketplace: it connects corporations to their supplier base and to third party financial institutions. Paygevity’s system enables corporations to optimise their working capital management by extending the time they need to pay suppliers, cost free.
Funding partners bid on supplier payables and pay the suppliers who opt-in instantly, rather than the usual 30-60 days period. They also receive a return on their loan when the invoice is paid. The startup takes a fee from the invoice for arranging funding.
Watch Paygevity’s founder and CEO, Neil Rothenberg, talk about the project and his rating experience.
Paygevity reaches the top of Early Metrics’ rated startups
As the fintech sector is reaching maturity worldwide, it is also getting harder for newcomers to stand out among other startups and compete with incumbents. Paygevity took on this challenge and has succeeded in setting up a win-win-win marketplace.
The startup was rated by Early Metric’s in December 2018, as part of its partnership with the Barclays Techstars Accelerator, and ranked in the top 30% of over 2500 startups. This high score was motivated by the innovative use of artificial intelligence (AI) that makes Paygevity a pioneer in its home market. The startup uses AI to categorise prospects, identify corporates with working capital issues and then target them more intensely.
Talking about his rating experience, Neil explained : “A thing that I have learned from Early Metrics is that you have to be ready to adapt and pivot to change when you are selling something innovative.”
Even though Paygevity mainly operates in the US, they are also expanding in Europe and Asia. We wish them a lot of success in this new adventure!