Fast release of working capital
Stenn’s invoice financing platform provides fast payment of invoices and frees up working capital that could be tied up for between 30 - 120 days in international trades. It means that suppliers can get their invoices paid as soon as the goods are shipped, yet their buyers will not have to pay for them until later, giving buyers time to receive the goods and make use of them. In competitive international export markets, allowing buyers to pay later gives sellers a competitive advantage. Invoice financing means that sellers can offer such terms without tying up their capital and can deal with new foreign buyers without risking non-payment of invoices.
The cost of such financing is usually 0.65% - 3.8% of the invoice value (which equates to an Annualized Percentage Rate (APR) of 7.9% - 11.4%) and Stenn takes the risk of the buyer defaulting.
No risk of buyer default
Stenn’s platform provides what is known as ‘non-recourse financing’, which means that suppliers have no risk of non-payment. This is particularly comforting when trading internationally with new buyers. Read more about invoice financing here.
Find out more in this video from Stenn’s founder.
Faster than a bank, better than a loan
Stenn’s online invoice financing is much faster than a bank (assessment is quick and funds are paid within 48 hours of only two documents being signed) and is better than a loan (it has no influence on credit history, needs no collateral, and requires no lengthy applications and interviews).
Higher funding limits
It also offers a much higher limit than bank credit typically would - up to $10 million (USD) per buyer - and covers you against the risk of your buyer failing to pay your invoice.
Provides huge leverage
It can also give smaller companies tremendous leverage. For example, a company with assets of only $50 000 (USD) could finance a shipment of goods worth $500 000 (USD) if the buyer fits the criteria.
It will provide funding where banks often won’t
Finally, Stenn specializes in financing cross-border trade. Very often banks do not finance international deals because they don’t work in jurisdictions other than their home countries. Read more about invoice financing here.