Credit Stretch
June 16, 2021

The credit stretch: 5 ways it's changing the way SMEs get paid

The credit stretch: 5 ways it's changing the way SMEs get paid

At this point, we’ve heard just about every problem customers face from finance providers.

We’re working hard to change your bad experiences forever. Rather than keeping those problems to ourselves, we’re getting it all out in the open.

So here are five ways we are changing the way SMEs get paid.

Change 1: No more financial interrogation

We hear this one a LOT so it’s as good a place as any to start. Most financial sales people would have you believe that their process is simple. But that’s just how they get you in the door. Most of you will have experienced this. They want your financial accounts. They (might) want your customer’s accounts. They want to know who you’re doing business with. 

With a credit stretch, there’s no financial interrogation. In fact, Fellow Pay doesn’t need to know your financial information. We automatically credit check the invoice receiver (only). If they’re creditworthy, we’ll pay you upfront. And your customer gets 60 (or 90) extra days to pay their invoice.

If having a bank or finance companies sniffing around your business is putting you off using finance to grow, we’re confident that Fellow Pay can help you.

Change 2: No more complicated contracts

Losing financial control is never fun. Signing long contracts buries you in uncertainty. Plus,  they mostly exist to benefit the finance company. Once you commit to one you’re locked into their rules. It’s unfair. And it’s got to change.

Fellow Pay doesn’t lock you into any long term contracts. You can credit stretch a single invoice. And it’s always on-demand. 

So you can use a credit stretch whenever you want. As much (or little) as you like. 

When you retain the control, you get the flexibility to make finance fit your needs - whether that’s to grow, or to use when money is a little tight.


Change 3: Clear pricing & no unexpected fees

Most finance pricing is discriminatory. 

Small companies are often ignored. Many SMEs are priced out by high interest rates and an endless list of additional fees.

And then there are the hidden fees. 1 percent here, another there, that eats into your profit margins.

Fellow Pay’s pricing is clear and upfront:

✅ 3,75% for 60 days

✅ 4,75% for 90 days

✅ And you get to choose who (between you and your customer) pays what


When you switch to Fellow Pay you can say goodbye to...

❌ Variable pricing

❌ Hidden fees

...forever

We hope to see this change right across the financial industry. We firmly believe that everybody only wins when nobody loses. 

Change 4: Fast answer, faster payment

Maybe you don’t need a fast answer. But most SMEs do. Because they need to get back to running their business. And the uncertainty of NOT knowing the outcome can affect the business AND your mental health - especially if you’re in a sticky growth period where every penny is contributing to your growth.

We’ve become too accustomed to multi-month decision making processes for finance. Money in 14 days is considered fast nowadays. That’s poor.

Applying for a credit stretch takes just 5 minutes - and it’s all online. Once you apply, we’ll check your application and give you an answer quickly.

If you’re approved, you’ll get paid the same day and give your customer 60 (or 90) extra days to pay their invoice.

Change 5: Available to any SME with a creditworthy customer

Last but not least is the travesty that we’ve become used to finance not being available to many SMEs. 

You’ve got to have been in business for X years. You need X number of employees. You need to have perfect accounts with almost no issues whatsoever.

Which is ridiculous. For the finance companies, this type of tentativeness makes sense. They don’t want to lend money to a company who literally cannot pay back. But it’s no good for the majority of companies who don’t fit the criteria but definitely can pay back.

Financial inclusion is a real problem in the world today. Even in the wealthy first world countries of Europe. We’re aiming to solve that for the SMEs who’ve been excluded from accessing the finance they need to grow.

So with that, I put it to you. Have you been excluded from accessing the finance you need because of one, or more, of the changes we’ve made?

If so, you can apply for a credit stretch without cost. As you now know, it takes just 5 minutes.

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