FlexCash could solve liquidity issues

Liquidity shortfalls are the primary cause of SME bankruptcy, according to a statement from AXA Winterthur. Financial bottlenecks due to long payment terms or poor payment behaviour by customers are common even among successful SMEs.

To solve these issues, the insurance company headquartered in the Greater Zurich Area has joined forces with the fintech startup Advanon, which is also based in the area, to develop the digital platform FlexCash. The platform allows SMEs to pre-finance their open invoices with the help of investors.  

“Traditional financing options are usually less flexible, while credit checks take a long time and attract high outlay,” explained Ivo Streiff, head of Innovation Management at AXA Winterthur, in the statement.

SMEs can register on the platform and upload the invoices that they would like pre-financing. The companies decide what they can offer the investors in return. FlexCash levies a platform fee. If an investor can be found, the amount will be paid to the SME within 24 hours.

Following a pilot in summer 2016, the two partner companies have now officially launched the platform.

“We are pleased to have found a very successful and competent partner for SMEs in AXA Winterthur and are convinced that our partnership will generate real added value for small- and medium-sized companies,” commented Advanon co-founder and CEO Phil Lojacono in the statement.