Kresus automates trade discounting

Less than six months after its launch, the fintech Kresus is raising funds with the ambition of positioning itself on the market for early payment of invoices. A few players have positioned themselves in this niche, with offers that combine automation and digital technology.

FACTS

• Launched at the beginning of the year, Kresus has just completed a first round of financing of one million euros from business angels and bpifrance.

• Kresus offers an automated solution that takes care of the entire process of early payment of company invoices, from the setting of the rules that define the discount rate to the accounting recording of the operation. Kresus automatically collects invoices and automatically sends offers according to the rules set.

• Target: its solution is particularly aimed at large SMEs and key accounts that are able to generate cash quickly.

• Kresus charges a subscription fee and a commission on earnings.

• The fintech sells its solution directly but also works through brokers specialising in cash investments.

CHALLENGES

• Enhancing cash flow: in the absence of secure short-term investment solutions that pay a return, discounting is a simple solution that is becoming increasingly popular, as it only ties up cash for the duration of the payment period, over very short periods. Hence the growing interest in the Kresus solution.

• Taking care of suppliers: Kresus also defines itself as a committed player in favour of customers and suppliers. Companies can create their competitive advantage with Kresus by positioning themselves as a player that takes care of its supply chain and treats its suppliers in an exemplary way by offering advance payments. In France, where more than half of all invoices are paid late, 25% of SME failures are due to late payment; in this context, the use of this solution can be a differentiating factor for companies.

MARKET PERSPECTIVE

• More and more fintechs are tackling the issue of late payment, which remains a major concern for business leaders, especially the smallest ones. Libeo, which has acquired TrackPay, a software that helps reduce payment times for VSEs and SMEs, has just acquired a stake in Rubypayeur, a community-based collection solution.

•  Defacto, which has just raised 15 million euros, has opted for instant credit for SMEs and plans to launch a payment in instalments service, targeting the self-employed in particular.

• Other start-ups, such as the accounting software Pennylane and the neo-bank Qonto, are also integrating services to reduce payment times.