Fundflow and Wirecard Bank launch online factoring platform for SMEs
Long payment terms and a high level of accounts receivables can quickly create problems for small businesses. With Fundflow, a FinTech company headquartered in Berlin, Wirecard has launched an online factoring platform on the German market, giving self-employed people and freelancers the ability to sell outstanding invoices on www.fundflow.de. Fundflow then facilitates the refinancing with institutional investors. Wirecard Bank provides the German banking licence and handles the payment process.
Businesses can bridge liquidity gaps with Fundflow by selling unpaid customer invoices with payment terms of up to 60 days. They receive the money the next day and thus remain solvent. If they choose, Fundflow can also take over the dunning process. Fundflow takes a small percentage of the invoice amount as a fee for the service and liquidity.