Delayed payments and cash flow issues are widespread problems that the majority of small and medium-sized enterprises (SMEs), suffer from. For businesses striving to sustain their operations and grow, delayed payments from customers can impact cash flow, making it harder to manage.
There are solutions that can be adopted by finance managers, such as stricter credit policies, conducting extensive KYCs on new clients, as well as factoring invoices, to maintain liquidity. However, an often overlooked solution to tackle these problems, is the integration of technological solutions.
We sat with Karl Abouzeid (KA), CEO of Fundbot, to discover how they are supporting SMEs overcome their most pressing cash flow and payment challenges. We also spoke about what their latest partnership with Mastercard entails and how businesses across the MENA region can benefit.
BDD: Can you tell us a bit about Fundbot’s achievements since launching?
KA: Since our launch, we’ve been empowering businesses of all sizes and helping them get paid faster, through solutions like embedded accounts receivables financing, allowing them to overcome traditional problems in payment cycles and improving their cash flow.
We’ve achieved significant milestones, including raising $1.5 million in a seed round, establishing new entities in Lebanon and the UAE, and growing our team with top talent. We also secured ISO 27001 and 9001 certifications, as we are committed to deliver secure and high-quality solutions.
Most recently, our partnership with Mastercard aims to accelerate B2B transactions and tackle payment delays, which aligns with our mission to drive efficiency and success for businesses.
BDD: What does the partnership with Mastercard entail?
KA: This partnership merges Fundbot’s discount management platform with Mastercard’s ICCP product to streamline B2B payments. The solution offers dynamic discounting, incentivizing early payments, and leverages AI for discount optimization. Additionally, it integrates virtual card issuance and ERP compatibility, focusing on improving cash flow for SMEs and fostering efficient buyer-supplier relationships, in multiple sectors, initially in insurance & healthcare.
BDD: How will it support your clients, based on their common challenges?
KA: Our partnership with Mastercard addresses business challenges like delayed payments and cash flow constraints, a problem that SMEs especially suffer from across the entire MENA region. In fact, over 65% of SMEs confirm that cash flow issues are a major hurdle, and payment delays average 90+ days. Our solution aims to reduce such bottlenecks, offering financial flexibility and operational efficiency.
For suppliers, the solution accelerates payment timelines, reducing the risk of late payments and improving liquidity. Buyers will be able to optimize cash flow management and to benefit from discounts on their payables, enhancing their profit margins.
BDD: How can your solutions support smaller businesses as well as multinationals, scale?
KA: Discount management allows the big corporates to maximize their savings through early settlement discounts, before invoice due date. In other words, paying their suppliers earlier means saving money. This low-risk return boosts the liquidity within the supply chain and fosters stronger relationships between the buyers (usually big corporates and multinationals) and their suppliers (usually MSMEs). In turn, the suppliers now have quick access to much needed funds that cover their operational expenses and growth.
This reduction in DSO frees up credit limits with buyers, potentially increasing business volume.
Are you an SME facing cash flow issues and delayed payments? Discover what Fundbot can offer you, here on their website.
