Early payment volume is up 208% as small business demand for financing increases during the COVID-19 crisis
More than USD 4 billion in early payments accelerated in March
Early payment volume is up 208% month-over-month as COVID-19 increases demand for financing by small businesses, according to the latest insights by Taulia, the leader in working capital technology solutions. These insights confirm that small businesses are in need of reliable and predictable cash flow to run their businesses during these turbulent times.
In March alone, more than USD 4 billion of invoices were financed using Taulia’s platform. Furthermore, new supplier adoption soared by 178% month-over-month. These statistics reflect that small businesses are looking for ways beyond traditional bank lending to access financing to overcome cash flow gaps and obtain working capital. Taulia’s 2020 Supplier Survey found these to be two of the main reasons why suppliers request early payments, revealing how critical these programs are during the COVID-19 crisis.
“As economic conditions have deteriorated, especially credit markets, we have seen a tremendous increase in demand for early payments. It is our hope that during this time we can help small businesses, which are the backbone of our economy, access the cash they need to prepare for a better future,” says Taulia CEO, Cedric Bru.
“Having the ability to request early payment has given us certainty as we don’t know what the future may hold. Access to extra liquidity enables us to optimize our cash flow to keep the business running smoothly,” says one supplier, Rocky Schmidt of Karet Trading.
The Supplier Survey collected the views of nearly 20,000 respondents and found that approximately 56% of all suppliers, both small and large businesses, were interested in requesting early payments. The benefits of taking early payment are clear: there is a strong desire to manage cash flow (34%), have payment predictability (20%) and gain access to working capital (15%). Taulia’s unique proposition allows all suppliers – regardless of size – to join the platform and access early payment.
For more information and for full access to the report, please click here.