International credit bureau CRIF will work with bill finance provider Penny to enable more UK businesses to get instant bill payments, a press release announced on Thursday (26 May).
This will help small and medium-sized businesses based in this country, the statement said, with benefits such as bills paid instantly, cash flow management and greater creditworthiness.
It will use CRIF’s open banking and credit scoring with Penny’s instant payment solutions.
Penny’s services include invoice financing, allowing businesses to advance money against what is owed by their customers. Customer will pay Penny directly with 30, 60 or 90 day terms.
Penny customers will now be able to recover their business bank accounts, which will instantly facilitate flexible credit assessments through open banking, which will create a good picture of a company’s finances.
The data will be updated daily. This way, businesses that might have been turned down due to credit issues can get invoices paid instantly.
The release notes that this comes during tough times as the economy faces various obstacles and problems.
And it comes as almost a third of businesses said they had seen an increase in late bill payments, with 1 in 10 saying it had threatened the viability of their business.
“The UK’s small businesses are the backbone of the economy, but many have struggled in the difficult economic climate of recent years,” said Sara Costantini, CRIF Regional Director for Ireland and the UK. United. access to financial support when lenders are unable to get a clear and accurate picture of their finances, especially if they are new to negotiation.
See also: Digital solutions for invoices and payments, mobile and digital payments are high on the agenda of FIs
PYMNTS wrote that, in other bill-related news, many financial institutions have been looking for digital solutions to address the challenges.
There have been a number of concerns such as money management, invoices and payments, data management, and vendor portals for organizations of varying sizes, according to “Meeting The Challenge Of Payments Modernization,” a PYMNTS and FIS collaboration.
The report found that smaller businesses were more likely than larger ones to report customer money management issues when paying suppliers.