FinTecrity digitizes invoice and receivables management for SMEs.
The EOS Group is a byword for debt collection services and receivables purchasing worldwide. Through its wholly-owned fintech subsidiary FinTecrity, EOS is also developing collection-independent solutions and services. Its products help small and medium sized companies to digitize their invoice and receivables management and stay solvent, especially in times of crisis.
- EOS subsidiary FinTecrity offers collection-independent solutions for the B2B and B2C segments.
- A billing solution and a factoring product were the result of the collaboration between TeamFaktor NW GmbH, DV Deutsche Verrechnungsstelle and FinTecrity.
- These digital solutions increase the liquidity of small and medium-sized businesses (SMEs).
- The combination of cutting-edge technology and specialist expertise allows the company to provide the best possible service and support to its customers.
When FinTecrity launched its new online portal in April 2020, no-one could have imagined at that point that the timing would unintentionally turn out to be so favourable. The coronavirus pandemic was still in its infancy but many companies were already wrestling with serious concerns about their liquidity. But even in non-crisis periods, the company‘s products are designed to help their customers maintain their solvency and to reduce the default risk to the greatest possible extent.
Digital factoring solution frees up liquidity.
“There are around three and a half million SMEs in Germany. For many of them, invoice management represents a necessary evil, something that is done in an incidental way but without much enthusiasm,” says Marco Gaspar, who is responsible for business develop-ment at FinTecrity. Its products DV AbrechnungPlus and DV FactoringPlus are designed to change this by leveraging digital solutions. These products are currently being sold exclu-sively via DV Deutsche Verrechnungsstelle (DV), a subsidiary of Deutsche Vermögensbera-tung, and are intended for companies that have previously struggled to implement profes-sional invoice and receivables management, for example because of their small size.
“Especially in times of crisis, companies are asking themselves a fundamental question: How do I get my money, and how do I get it as quickly as possible? Our factoring solution means that they no longer need to worry about issues like payment terms and default,” says Gaspar. Instead, companies can upload their invoices to the DV portal. Thanks to a real-time creditworthiness check, the company will know after just a few moments whether the factor – in this case TeamFaktor NW GmbH – will purchase their invoice or not. If the invoice is purchased, the company then receives the full invoice amount in their bank account after two days at the latest. The factoring fees are billed to the customer on a monthly basis.
FinTecrity products target SMEs.
As well as smaller retailers, service providers, consultancies or agencies, the products are mainly targeted at traditional skilled trade businesses. One such firm is Schoeb Elektrotech-nik GmbH, whose owner Bernd Schoeb now uploads almost all of his invoices to the Deutsche Verrechnungsstelle portal. “Factoring allows me to manage my cash flows in a way that suits me, including for tax purposes. When I have earned my money for the month I do not upload certain invoices until the turn of the month, in the certain knowledge that I will have my money within two days.” For receivables not purchased by the factor he uses the integrated billing solution. His reasoning is quite simple: “I just don’t want to be messing around any longer with sending out reminders or following up payments.”
When I have earned my money for the month I do not upload certain invoices until the turn of the month, in the certain knowledge that I will have my money within two days. Bernd Schoeb, Managing Director Schoeb Elektrotechnik GmbH
Starting off as a one-man operation, Bernd Schoeb now employs around 20 people. However, trying to find a suitable product for his business was anything but simple. “Factoring for trades-based businesses has always been a difficult market,” says Schoeb. “We were simply too small for most providers.” DV FactoringPlus is specifically intended for companies with an annual turnover of less than €2.5 million. The average value of each invoice is €1,500, a figure that is typical not just for Bernd Schoeb, but for many other trades-based businesses.
Other solutions in progress.
Until now, affiliated company EOS KSI was not able to serve smaller companies as debt collection clients. The expenditure was simply too great relative to the expected order volumes. The fact that the company can now also handle the overdue invoices of FinTecrity customers is due primarily to the ongoing digitization of the processes involved. As Johannes Brummer, who is responsible for marketing at EOS KSI and FinTecrity, says: “The SMEs can now upload and administer their overdue invoices in the system by themselves, which keeps the processing costs down for both parties.”
Meanwhile, FinTecrity is working on new features to resolve existing media interface issues and streamline the processes even more. Marco Gaspar cites one example: “At present, customers are still manually uploading their invoices to the portal. We are currently working on a solution that would potentially allow the invoice to be sent from the software used by the customer with just one click once it has been generated. Our solutions are designed to make the customer‘s work easier. With this in mind we listen closely to our customers and observe how they use our services.” Other services are already a work in progress, e.g. a factoring solution for lawyers and a billing platform for driving schools.
Please don’t hesitate to contact us if you are interested in FinTecrity’s solutions.
Photo credits: EOS (3), Schoeb Elektrotechnik, shutterstock