The cash flow woes of Australia’s small to medium-sized businesses could be a thing of the past with the launch of a new online platform.
FundX is a fintech start-up that allows businesses to fund cash flow gaps by advancing payments based on outstanding invoices.
FundX founder David Jackson said the platform has already been used by Australian businesses to help manage cash flow during the pre-Christmas period.
“In one case a business scaled so quickly that it had more orders for stock than it could afford to produce. We call that a good problem and we like helping businesses to solve good problems,” Mr Jackson said.
“Using the FundX approach, we have offered invoice finance that has allowed the business to invest in stock and maximise its return from the crucial Christmas period.”
Mr Jackson said the launch of FundX comes at a pivotal time in the marketplace.
“Invoice discounting is worth more than $120 billion per year in this market alone, but the steps to obtaining it can be onerous,” he said.
“With our system, having worked on a risk assessment algorithm with KPMG and through using our company’s own cloud-based invoicing history, we can provide an answer within one minute and cash the next day.”
FundX is supported by Sydney-based incubator BlueChilli and recently secured a round of seed investment from ASX-listed firm Collaborate Corporation Limited.
“FundX is able to leverage Collaborate's peer-to-peer and marketplace skills and knowledge, while we simultaneously address significant opportunities in the fintech sector,” Mr Jackson said.