Our customer needed liquidity to continue growing their business during the COVID pandemic. But their customer couldn’t pay until their own customer paid them; which takes up to 56 days. Frustratingly, there’s nothing they can do to speed up the payment.
They needed the money to buy more materials to deliver the product to their customer. Materials they buy from their own subcontractors who also want to be paid quickly.
Other finance companies could only offer them a low credit limit. Nowhere near enough for the liquidity they require.
The finance companies that often serve this industry only credit check the invoice issuer. Which is often the smaller (less creditworthy) company in a transaction.
We minimised the risk in the transaction giving them four times more liquidity than other financing solutions had offered.
Our customer is a growth company. And Fellow Pay helps them to grow faster by accessing the money that was locked up in invoices for up to 56 days.
They needed the money now. Without it, they couldn’t buy more materials to ship to their customer. Getting that money normally requires they apply for equity, project or risk capital which is almost impossible to get during COVID times.
Fellow Pay enables them to pay their subcontractors faster. To pay themselves faster. And to use that liquidity, freed up from the invoices, to buy more materials to fuel their growing their business.
Fellow Pay is giving them the ability to grow in the middle of this COVID pandemic. A difficult task for any business during these uncertain times.
Fellow Pay is solving everyone’s problem.
The contractor who isn’t getting paid by their customer now has free credit. Our customer get liquidity from their invoices instantly, rather than waiting 56 days - meaning they can continue their high growth trajectory. And the smallest subcontractors can get paid now, too.