Insights for Procure-to-Pay and Finance Leaders

Where big banks fail, Tradeshift & CapitalAid deliver – $3bn factoring business for EU SMEs set to ease lending needs

If we had to find a silver lining to the rough and tumble lending market faced by SMEs in the UK and EU over the past several years it would be this: The banks’ reluctance to lend has spurred several new, innovative funding solutions. Solutions that are disrupting the very tired and archaic financial institutions that have dominated the lending market for decades.

We’ve known for quite some time that Tradeshift is one of those disruptors – we connect suppliers and buyers and process tens of millions of invoices annually. All we needed was the right financial partner. One that understood our vision and our promise to always deliver value to both buyers & suppliers.

We found this in CapitalAid and together we are launching a $3bn factoring business right on top of the Tradeshift platform. This means instant payments and access to cash for SMEs using Tradeshift. It also means more stable, cash solvent supply chains for our enterprise customers.

This new funding mechanism is unique for many reasons. First – Tradeshift is, of course, free for suppliers and thousands of SMEs are joining the platform every week. Second – unlike some recent offerings by competitors – this fund will be available to businesses in a matter of months. These two facts alone will help to extend the reach of this lending power to the businesses that need it most. Together, Tradeshift and CapitalAid have broken down the barriers that stand between small business and available capital.

Access to cash has always been one of the hardest, yet most critical components to sustaining and growing any small and medium sized business. And when SMEs suffer – so do the big businesses they work with.

In fact, enterprises no longer look at suppliers as mere vendors. The leading companies in the world understand suppliers are business partners. It’s a symbiotic relationship and in the best interest of any buying organization to ensure their supply chain has the financial resources needed to succeed.

The CaptialAid fund will be embedded seamlessly into the Tradeshift platform. By leveraging Tradeshift data – from both buyers and suppliers – CapitalAid is able to conduct real-time credit analysis and make strategic lending decisions – so strategic in fact, they are able to provide much more aggressive pricing than other lenders.

This is a very exciting time at Tradeshift – for our team, our SME users and enterprise customers. The market urgently requires new solutions that focus less on profit maximization by financial institutions and more on delivering a boost to an economy that needs it.