Speaking to Payment Expert, Bella Renney – Product Director at Liberis – discussed some of the embedded finance’s platform greener finance products geared towards SMEs and highlighted why “cash flow is the key pain point for many business owners”. 

Payment Expert: Firstly Bella, what are some of the innovative embedded finance products Liberis offers that have proved fruitful for SMEs?

Bella Renney: At Liberis, we offer revenue-based finance to SMEs, a funding solution that makes it easier for business owners to quickly and easily access the capital they need. 

We are committed to putting business owners back in control and helping them with managing their cash flow – whether that’s paying for additional employees, acquiring more stock or investing further in products to scale their businesses. 

It’s a difficult time to be a business owner and one of the pain points we identified in designing our services is that SME owners find it difficult to access the funds they need, when they need them. 

Our service is designed to allow our customers to apply for funding in just four-clicks. We streamline the time it takes to access essential funds and we ensure personalised, and transparent funding is available in less than 48 hours. 

The SMEs we work with see real value in revenue-based financing as it gives them the control and capacity to thrive and the majority of our customers seek repeat financing with us when they’re ready to scale further. 

To date, we have proudly delivered over 45,000 flexible transactions, helping tens of thousands of businesses access funding, driving growth in the SME community.

PE: Can you talk about Liberis’ funding initiative Cashback for Green and why it’s so important for SMEs in particular, to embrace greener finance?

BR: Absolutely and it’s something we were really keen to help our community of SMEs navigate. We responded to our customer’s desires for greener funding, and along with our partners, we offer cashback when SMEs invest their funding in green purchases. 

It’s come at exactly the right time for business owners who want to be more environmentally conscious, yet struggle with changing sustainability regulations and the pressures of running a profitable business. 

A study found that 91% of SMEs agree it is important to be sustainable, but 42% of this group struggling to do so from a lack of guidance. Cashback for Green simplifies this process, encouraging SME owners to make green investments that they may otherwise postpone, and be rewarded for their commitment to the environment – all whilst pursuing their business goals.

PE: Do you believe that green finance is not explored enough and what are some of Liberis’ solutions to help this?

BR: It’s an area that’s seeing growth each year, and we’re delighted to see the conversation around green finance growing in prominence, but we still have a way to go in ensuring its adoption is widespread. 

Encouraging sustainable and green investments is something that is crucial for all of our futures, but there needs to be genuine commitment to delivering green finance and making it accessible for all. 

Cashback for Green is just the beginning for Liberis in delivering green finance solutions that also benefit the financial growth of business owners. We’re eager to see how other areas of the fintech sector and wider will continue to develop in this space.

PE: What are some of the challenges businesses often find when managing their cash flow and how can revenue-financed solutions improve this?

BR: Cash flow is THE key pain point for many business owners, especially in our current financial climate. These unexpected costs can present themselves in many ways, from having to make upfront payments for inventory, delayed payments from clients, or the swiftly felt impact of inflation. These all hit business owners hard, and for those who seek out traditional loans, the interest can hit even harder. 

Revenue-based finance works on a sliding scale, so that your loan is paid back in line with your revenue. It takes into account that for a business owner, no month is the same, and there will be peaks and valleys. 

This flexibility is something we are dedicated to, as it gives SMEs the room to survive and grow their businesses based on what they can afford.

PE: Lastly Bella, what are some of the areas that are unexplored that you believe can be truly innovative in the embedded finance space?

BR: I have compiled a list of some of the key areas that can help innovate the embedded finance space: 

  • Smart Cash Flow Analytics Platform: Develop a platform that integrates with the accounting and financial systems of small businesses. It analyses cash flow trends and provides real-time insights, helping businesses make informed decisions about when to apply for a cash advance to manage their cash flow effectively.
  • Cash Advance Marketplace: Create a digital marketplace where multiple lenders can compete to offer cash advances to small businesses. The platform can use algorithms to match businesses with the most suitable lenders, considering factors like business size, industry, and creditworthiness.
  • Predictive Funding Algorithm: Develop an advanced algorithm that uses machine learning to predict when a small business will need a cash advance based on historical data, seasonal trends, and industry benchmarks. This proactive approach ensures that businesses receive funds just when they need them the most.
  • Instant Cash Advance API: Offer an API that can be seamlessly integrated into various accounting software and financial platforms commonly used by small businesses. This allows businesses to request and receive cash advances with just a few clicks, without leaving their preferred tools.
  • Financial Education Hub: Develop an educational platform that provides small businesses with resources, webinars, and tools to better manage their finances. Empowering businesses with financial literacy can help them make more informed decisions about when and how to use cash advances.