Why embedded finance is key to the future of B2B companies

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Embedded finance has completely transformed the financial services industry.

The digitisation of these processes has been very well received by users, who find this methodology more convenient, accessible and faster than having to go to a bank or financial company in person for any transaction.

Entities offering embedded finance services have confirmed over time the benefits of this development:

  • Better customer retention is observed.
  • Cash flow management is optimised.
  • Revenue increases.

Embedded finance, boosted by the evolution and potential of mobile devices and the Internet in general, has conquered the B2C arena with relative ease. Indeed, this was predictable.

More surprisingly, the success of embedded finance in B2C has quickly attracted B2B companies, which are gradually confirming equivalent benefits from leveraging it with their customers, employees and suppliers.

Benefits of embedded finance in the B2B environment

Recent studies have confirmed that the same benefits achieved with embedded finance in B2C are transferable to business-to-business services. The B2B sector therefore benefits from increased customer loyalty and improved cash flow management by taking advantage of this type of service.

The only drawback for companies is that it is difficult to develop these capabilities internally, so they usually turn to external providers for these services and, in this sense, Fintechs have found an ideal combination of factors to be able to increase their presence in B2B businesses.

This situation comes with the added advantage that integrated financing is already well established in B2C. Users have gained valuable experience in this area, they are familiar with digital financing services and all the benefits they offer.

More importantly, they trust them and count on this possibility for business transactions of different scales.

This is vital in the B2B arena, where deals are much more ambitious and where short, medium and long-term business is involved.

What are companies using embedded financial services for?

In B2B, embedded financial services are increasingly present and, therefore, we can identify which typologies are most in demand by companies with different profiles.

In general, there are two objectives that are pursued with this type of services: to maintain an optimal level of liquidity and to reinforce the security of their operations at an economic level.

This clearly exposes the benefits of integrated financing and its relevant role in the future of the companies that take advantage of it. The common goal is to ensure the financial stability of the company and to foster its growth.

Yndika and embedded financial services

Atlax 360 has developed the Yndika cloud platform, with key integrated financial services that are of great interest in the B2B environment.

In the field of liquidity, Yndika’s non-recourse factoring stands out, a financing service adapted to the needs of each company and with which it is possible to meet the cash flow peaks that occur.

With this factoring service, it is possible to contract online and in just 4 hours receive an automatic transfer of funds, with a coverage of up to €100,000.

An applicable solution for immediate financing, for invoices with payment terms of 30, 60, 90 and up to 120 days.

It is also a service that provides financial security to the company, given that as it is “non-recourse”, it prevents the company from having to deal with a possible non-payment by the customer.

In addition to this service, flexible credit insurance is a solution that demonstrates the adaptation of embedded finance to the current needs of companies.

This insurance makes it possible to customise the coverage of specific commercial operations with specific customers, which present a risk that the company does not wish to assume.

It is a service whose full potential can be exploited, thanks to the integration of the Yndika platform in real time with your ERP. This makes it possible to evaluate customers with whom you have not yet worked, to analyse the financial situation of your current portfolio, and to identify invoices that present an immediate risk.

The advantages of credit insurance such as that offered by Yndika highlight the differences between traditional financing and what integrated finance can offer:

  • Agility is evident throughout the process, both for the financial analysis, as well as for the application and approval of the insurance.
  • Coverage is customisable and, instead of having to cover all of a client’s transactions or even the entire portfolio, it is possible to insure even a specific invoice.
  • It is a service that also considerably reduces the associated costs, making it much more attractive to any business.

With these advantages, integrated financing has the ground to continue consolidating in the B2B sector, just as it has done in B2C, and with a promising future, as technological evolution allows all these advantages to be extended and improved.

The ATLAX 360 credit insurance service is provided by ESPISAN AGENCIA DE SUSCRIPCIÓN S.L., CIF B93742120 and number of Registro Administrativo de Distribuidores de Seguros y Reaseguros AS-0108, an agency of Great Lakes Insurance SE, a Munich Re company.

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