07 Mar Acudeen Fixes Cashflow Problem of SMEs using Receivables
MANILA, PHILIPPINES- It’s fairly common for small business owners to wait for 30 days or more just to get their payment from partners and clients that are normally big businesses. These invoices hinder SME’s to have access to sustainable capital or cashflow for their day to day business. Acudeen, winner of Seedstars Manila 2016 and just recently 2016 Tech in Asia’s Tokyo Arena, has a solution to this problem. With their new platform, businesses can now sell their invoices to financial institutions at a discounted rate, and receive as much as the full amount of their invoice back instantly.
With over one million SME’s in the Philippines and over 70 million in South East Asia alone, Acudeen’s solution is a welcome one.
“The ultimate goal for the product- the vision for SMEs, all came down to the same pain points I had when I was working for “The Medical Observer,” says Magellan Fetalino. “80% of our ledger was essentially composed of receivables from big businesses and these businesses would take up to 120 days to pay. It was excruciating”.
Despite the Philippines being a $2 billion market for Acudeen, they still plan to expand regionally, as regular people in the region still do not have access to credit data. What makes Acudeen truly unique is that despite the broken ecosystem in developing countries, with their lack of data and solid infrastructure, Acudeen is able to push their model to any emerging market or economy through the way they streamline their process. While most of their competitors have to do a credit assessment on the SMEs – which is usually not available, Acudeen’s system completely forgoes this, as they partner with bigger companies, or financial institutions with the available financial data that they need. They are able to facilitate this process through the help of their partners, which includes the premiere business information firm, Dun and Bradstreet.
One of the largest banks in the Philippines, is set to be one of the main financing partners of Acudeen, thereby potentially purchasing all the invoices that Acudeen vets. The bank is said to provide a financing capacity of up to 1 Billion Pesos if the supply of receivables can match it. Acudeen’s CEO says they will make announcements in the near future.
Acudeen, is officially launching this January and will be accepting invoices coming from more companies by then.