Are your banking providers serving all your working capital needs? We’re betting that they’re not.

January 26, 2022
By Taulia
By Taulia

Legacy financial institutions can act as bottlenecks to growth, failing to offer their clients solutions for effective working capital management and instead can offer uncompetitive credit terms and pricing thanks to the perceived lack of other options. But, here at Taulia, we are building a better way.

Taulia Accounts Receivable Financing (or AR Financing) offers you an efficient, flexible way to secure early payment on your outstanding receivables and drive your working capital velocity. We want to help you free up cash trapped in unpaid invoices, saving you time and giving you the flexibility you need to grow your business – and to help you navigate the new post-stimulus economic environment we face in early 2022.

Why wait?

Get in touch today to find out more.

What is AR financing?

To understand how AR financing works, we need to go back to Finance 101. When your company issues an invoice, and you recognize the revenue from the sale, an asset and a liability are created.

The liability is on the part of the debtor firm or individual – simply put, they owe you money. The asset is on your side of the equation – it’s the money you are owed but haven’t received yet. However, this is an asset you can’t do anything with – it’s illiquid, to use the jargon. Nobody accepts payment for one thing with a contract saying you’re owed money for another.

Accounts receivable financing is where a third-party provider buys the receivable from assets off you in return for liquid capital, creating another transaction that is settled when your initial counterparty pays up. In a nutshell, it means you get access to cash trapped in your invoices today so you can keep investing in growing your business: this is what we call working capital velocity.

One platform, one provider

The sad truth is that it’s not your balance sheet banks care about – it’s their own. And this problem is compounded when you must manage multiple relationships with multiple banks. Conflicts of interest can result, individual banks can impose arbitrary limits on how much capital they can offer, and basic human error can result in time and money being needlessly spent on bureaucracy when it could be put to work growing your business.

Taulia’s AR financing solution cuts through all this red tape and offers a single legal agreement that can open up multiple funders to you. That gives you the freedom to streamline your AR financing process, leaving you with more time and resources to focus on what’s important.

More liquidity when you need it

Taulia works tirelessly with an extensive network of domestic and international funders on your behalf with an appetite for an ever-expanding range of assets. We are constantly opening new liquidity streams from relationship banks and other financial institutions to make sure we can offer the most capital and most competitive rates in your jurisdiction.

This diversified approach captures the best options for you – freeing you from relying on what outmoded and rigid bilateral banking relationships can offer so you can enhance your current capital base.

Insights to drive positive action

Taulia’s insightful working capital management platform contains our broader suite of accounts payable and inventory financing tools, creating a consolidated dashboard that offers real-time visibility on your cash flow position at any given moment.

From adjusting your cash position to exploit opportunities as they arise, to building sophisticated arbitrage strategies, our solutions work together to empower the structure of your company’s core capital in a way that’s most aligned with your strategic goals as a business.

Contact a Taulia sales representative to learn how our AR financing can benefit your business

How Taulia accounts receivable financing works

Let’s break down the process in as simple terms as possible:

  1. You issue an invoice, recognize revenue, and at the same time create an AR asset.
  2. You offer the AR to Taulia for purchase on our simple to use platform.
  3. Taulia purchases the AR and pays you the purchase price, minus a discount that compensates us for the admin and risk. These funds are provided to Taulia by third-party liquidity providers from our extensive global network.
  4. This capital is now liquid in your collection account and can be leveraged in whatever way you choose.
  5. At invoice maturity, your customer can either settle their invoice with you, or pay us directly, depending on what we have agreed.


How does Taulias Accounts Receivable Financing works

Benefits of accounts receivable financing

We know we don’t have to sell you on the idea of getting access to money today that you are owed tomorrow – but just in case, here are just some of the benefits of AR financing:

  • Improve your working capital velocity so you can keep growing your business
  • Save time and effort by not having to work with outdated bank systems
  • Avoid the high charges and inflexibility of alternative funding methods
  • Pay your suppliers early with cash you are in turn owed – and strengthen your supply chain to fuel future growth
  • Choose the receivables you want to sell – and do it when you want, how you want
  • Improve leverage/gearing, DSO (Day Sales Outstanding) and CCC (Cash Conversion Cycle) – all key metrics for financial performance.

Why choose Taulia?

We know we’re not the only provider of AR financing on the market. And we know we’re not the only one to promise an integrated platform.

We also know, however, that by only requiring you to engage with us on one RPA, we beat both banks (who’ll require multiple RPAs because they’re – of course – different companies) and other fintech businesses, who generally don’t have access to the kind of capital we do. And we can offer this capital thanks to our broad funding base that extends beyond banks, and therefore beyond banks’ risk appetites.

Add to that the opportunities for sophisticated, flexible, and efficient capital allocation created by our best-in-class platform, and we are confident we offer a formidable solution to your financing needs.

Contact us today to find out how we can build the AR financing solution that will power your next generation of growth.