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Sourcery also accommodates businesses that aren't ready to digitize all of their accounting, letting customers export data as a traditional invoice.
Traditional invoice management between vendors and internal departments in a company can be a tangled mess of email exchanges, lost messages and ultimately delayed payments.
He also says that DueCourse differs from the traditional invoice finance model that requires an SME to handover all invoices, sign a lengthy contract, "and involves the finance company informing all customers that the SME is in a finance arrangement".
At the same time, rather than simply moving the traditional invoice financing model online, the startup has built a "live, automated and algorithm-based trading exchange" that lets an SMB set the discount at which they want to sell an outstanding invoice and have investors bid in realtime to offer the best rate.
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The traditional invoicing isn't working for most people - it takes more than five day and there are high transaction fees.
Until recently this data has largely been cemented in spreadsheets, invoices and other traditional back-office means of doing business.
Because of this close relationship, the two parties may settle up weeks later, frequently with traditional wire transfers or complex invoicing and trade schemes in electronics, farm equipment, commodities and gems (see box, p. 100).
Wonga said its short-term loans were different from those provided by banks, and were expected to sit alongside traditional bank overdrafts, bank loans and invoice discounting products, providing alternative or additional funding.
This means that there are now several viable alternatives to the traditional overdraft, including merchant cash advances, invoice finance and revolving credit facilities.
Cash advances and invoice financing may not have a traditional APR, but borrowers still need to fully understand the pricing and terms so they can effectively compare the financing options they're offered.
A big advantage of BlueVine over a traditional factor is that you can choose which invoices you want paid early, and once you have enough cash you can ignore the site.
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