Fundbox Takes a Look Back at 2019 in Closing the Mobile Payments Gap
Mobile payments represent a great way to get cash from customers to businesses, but sometimes, cash doesn’t always move as quickly as businesses would like. This is where some intermediary operations can step in and fill in the gap. One of the latest such entrants in the field is Fundbox, a group that helps speed up the course of business-to-business (B2B) payments and get cash in hand faster. Fundbox recently tipped us off about how its 2019 went, and the numbers are eye-opening.
One of Fundbox’s biggest achievements was getting more cash where it needed to be, and contributing to some impressive gains as well. About one in five—20 percent—of Fundbox customers managed to land a credit limit hike as a result of working with Fundbox, and the average credit limit increase was up 15 percent over previous totals. Not bad by itself, but given that 50 percent of Fundbox customers had their best year ever in 2019, it’s clear that Fundbox’s contributions are helping businesses do more.
In fact, Fundbox delivered its impact to a wide range of market sectors. It offered support for media companies, financial services, and even utilities and power companies. For these companies, it delivered incredible reductions in time to get paid. While the average is 28 days, it reduced that down to 22 for food and beverage operations, 17 for both consumer staples and consumer discretionary companies, and a meager eight days for the semiconductor industry.
It’s hard to argue with results like these. Shrinking down the time it takes for businesses to actually receive money—which can be different when you’re dealing with businesses over consumers—is a great way to improve cash flow. For those not already familiar, cash flow is the lifeblood of business; with enough of it moving in and going out, the business is healthy. If there’s a blockage anywhere, the business is only a matter of time away from outright death.
Fundbox prevents business death. That’s a little overgeneralized, of course—very few businesses have a cash flow so unhealthy that it will kill them within a month—but by improving cash flow, Fundbox has made business function better in an era of speedier spending with mobile payments.