Pretend for a moment you are the owner of a new, small business. You probably don’t have a continuous cash flow to put back into the business and can only buy stock once money has come in from a previous sale.
For ambitious entrepreneurs such as yourself, this can be frustrating.
But for one ING country, that’s all about to change. ING in Poland is partnering the fintech inviPay, a service which pays bills on your client’s behalf.
So how does it work? Say, you have just finished an order for a client. Their payment terms are 30 days. Rather than having to wait that time for your money, there’s the option of sending your bill via inviPay.
InviPay pays you directly, minus a service fee, on behalf of the buyer. This creates a continuous availability of funds for your business. The buyer is notified of the transaction and transfers the total bill to inviPay at a later stage.
Hoe it works
InviPay has been online since 2015, after two years of development. This new way of so-called microfactoring has been a gap in the market, showing how payments can be made easy.
ING in Poland is partnering with the fintech to offer the service to their customers too. Their website now features a link to inviPay. The partnership is part of a test phase. If it turns out to be popular, ING in Poland might improve the processes and expand the service to other banking environments.
Bank Vice-President Marcin Giżycki said ING is open to cooperation with fintechs.
“This gives us an opportunity to use their technological solutions,” he says. “Evolving expectations and behaviours of clients force us to keep looking for new cooperation models in the market. Our strategy centres around automation of processes and digitalisation of our offers”.
Contributed | what does this mean?