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'Forget toilet paper, everybody just wants to be paid'
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Sydney, March 2020:
On March 11, 2020, the World Health Organisation declared COVID-19 as a pandemic. In the 24 hours following that, Earlytrade witnessed $51.4 million of early payment requests from Australian small and medium-sized businesses. This was a 650% increase in Earlytrade’s average daily trading volumes.
The week following March 11, 2020, the company saw over a quarter of a billion of early payment requests made on the Earlytrade marketplace.
“Forget toilet paper, everybody just wants to be paid,” Guy Saxelby, CEO of Earlytrade said.
Having seen the excessive demand for ethical working capital solutions in the market, Earlytrade has responded to COVID-19 with the launch of new products in addition to its existing core product, the early payment marketplace. These products are mainly designed to support small businesses as well as stimulate the economy and help boost the entire supply chain.
“We have ambitious plans for 2020. Although it is impossible to predict the ultimate cost of the pandemic, we are viewing COVID-19 as an opportunity to innovate and disrupt traditional payment practices around the world using technology,” says Piers Symons, CTO and Co-Founder of Earlytrade.
Earlytrade’s response aims to:
- Offer early payment to small businesses for freeThere is a huge social need for early payments to small businesses to help them survive as well as sustain them. Making early payments free will be hugely beneficial for this segment of businesses.To scale this up, Earlytrade is in conversation with policymakers and government agencies to help release billions of dollars in cash flow into the Australian economy and help support smaller businesses by paying them first.
- Support Small/Local/Indigenous businessesThe first draft recommendation on the ASBFEO review of Supply Chain Finance last month, was the difficulty in defining and identifying small/local and indigenous businesses. As a technology company, Earlytrade aims to launch “Earlytrade Verify” that will disrupt the payment arrangements for these businesses in Australia in the coming few weeks.Given how rapidly the current environment is evolving, Earlytrade is committed to being flexible, and adaptable to ensure this response supports our social responsibility towards the Australian and NZ economies.
Earlytrade is an Australian fintech company that provides a unique ethical alternative to ‘reverse factoring’ or supply chain finance.
Founded in 2016 by technology entrepreneur, Guy Saxelby and ex-ASX product manager, Piers Symons, Earlytrade owns and operates Australia’s largest early payment marketplace with over 36,000 businesses using the platform today to request early payment from their customers.
A key difference between the Earlytrade Marketplace model and other reverse factoring arrangements is that it is entirely supplier-driven. If suppliers require funding before their contractually agreed payment date, they can access an alternative source of liquidity via the marketplace at rates significantly less than bank financing, which in turn creates real value for suppliers.
Earlytrade’s Marketplace matches a committed supply of working capital from customers and the demand for early payment from all their suppliers. Unlike some platforms, Earlytrade does not mine big data or use AI to collect detailed information on the contents of supplier invoices. This is important as it allows Earlytrade’s marketplace to be neutral, with supply and demand driving rates.
Along with its core marketplace platform, Earlytrade has four other products growing in adoption including Earlytrade View, Earlytrade Verify, Earlytrade Grower and Earlytrade Fund.