EarlyPay is an Australian company offering invoice, asset and equipment finance to small and medium sized businesses in Australia. EarlyPay recently launched its own fintech that offers a ‘low-doc’ solution to accelerating the factoring process.
One of the biggest problems for new businesses and particularly for small businesses is that they often struggle to secure financing on their unpaid invoices because they cannot provide the documentation suitable to satisfy a factoring company or bank that their business has long term viability, that there customers are reliable payers and that they are compliant with all laws and tax regulations.
A low-doc solution seeks to find other checks to verify authenticity, legality etc. that will form the legal basis of an agreement. In this case it is the legal agreement between EarlyPay and its client.
Lee Trego neatly sums up the fintech offering:
“Our new product will enable businesses to access the financial assistance they need without being forced to jump through undignified and time-intensive hoops simply to unlock funds from their own invoices.”Lee Trego, head of early growth at EarlyPay
The fintech is driven by AI and allows Australian companies to unlock their invoices for financing. They can access prepayments up to $500,000 that will be available to withdraw in 24 hours. Moreover, companies will be able to access equipment financing through the low-doc finance app to further free up funds for cash flow.
This fintech product demonstrates the potential for AI combined with low-doc verification to automate factoring of invoices and asset-based lending. The app was launched in October 2022, partly in response to a business environment in Australia reeling from the double shock of Covid-19 and the raising of interest rates caused by supply shortages and the disruption caused by the war in Ukraine. It was estimated that in Australia over 50% of invoices were paid late by an average of 23 days in 2022. The low-doc app provides a life line for Australian businesses wanting to stay afloat in these trying times. It also offers alternative entry points to business financing for small companies and start-ups who are without the necessary financial credentials to secure early funding for their invoices.