Payment gridlocks are a common problem for Polish entrepreneurs. The National Debt Register (KRD) has published a new report about the financial situation of Polish businesses, and things are not looking up. Luckily, Finiata is here to save the day with their microfactoring platform.
If the issue of payment gridlocks affects your business, you’re not alone – according to KRD’s data, 85% of Polish SMEs have difficulty in receiving payments from their contractors on time. The delays in payments cause financial troubles in other obligations, such as salaries, taxes, or invoices from suppliers. The report shows that the construction industry as the most troubled with payment gridlocks, while industrial enterprises seem to be the least affected.
It’s clear that this is a serious issue for SMEs nationwide. KRD’s report really shows the scale of the payment gridlock issue in Poland. On average, companies wait 3 months and 3 days for their money. Such long delays affect the companies’ financial condition negatively and backpedal their growth – says Grzegorz Micyk, the CEO of Finiata Poland.
Traditional banks aren’t always best suited towards the SME sector. Noticing this underserved segment, Finiata wants to meet the Polish entrepreneurs’ needs by offering the service of non-notification factoring with recourse.
As a fintech company, Finiata aims to make their systems user-friendly and innovative. Their microfactoring platform employs a brand new financial model which is fully online-based and automated. The scoring technology needs only up to 24 hours to finish the process of financing a business. The limits are set after an automated evaluation executed by an advanced, self-learning algorithm which uses thousands of control points in its credit risk assessment.
Afterwards, the client is given their factoring limit. They can submit invoices into the system and individually choose a financing period for each of them, which can later be extended up to 120 days. Finiata uses a non-notification system, which means that the client’s contractors are not informed that their supplier employs external financing. The invoices are paid directly to the supplier’s account, and after that, the supplier returns the previously received advance to Finiata.
In just 6 months, we were able to support 7000 companies, 70% of whom have become our regular clients. These numbers show that there’s a clear need for financial liquidity improvement. – says Grzegorz Micyk, the CEO of Finiata Polska
You will get a chance to hear from Finiata at Impact fintech’17 during the Fireside Chat on December 7th. Check out the agenda here.