PeerPay has developed a cloud-based platform that links the larger, cash-rich firms within an Accountant’s client portfolio with smaller, client companies within the same community looking for money to grow. The brainchild of founders, accountant David Ireson-Hughes, Michael King, an experienced financial services executive, and Alan Burns an experienced technologist, the platform – called FloFunder – is a new twist on the traditional peer-to-peer invoice finance model.
It enables small businesses to ‘sell’ verified invoices to larger businesses who use the same Accountant, and receive between 95% – 100% of that invoice value in advance to support their cashflow. The seller retains control of their invoice ledger. Unlike online invoice auctions where funders must bid and monitor each invoice, the process is entirely automated.
PeerPay CEO Michael King believes that too many viable businesses continue to fail because of lack of cash: “Statistics at Companies House indicate that more than 275,000 businesses were liquidated in the past year and I am sure that a good percentage of these is because they didn’t have access to alternative funds. FloFunder liberates cashflow for business clients and offers high returns on their money to those with cash to invest, and is probably the most ethical platform available as it is aimed to ensure that all parties involved get a fair deal,” he concluded.