Accounts Receivables Automation Software and Payments Technology
Last updated
Last updated
Kasu’s launch Delegate and technology partner is an award-winning ‘SaaS+Fintech’ business, Apxium Technologies Ltd (“Apxium”). Through this partnership, Kasu and Apxium deliver innovative Accounts Receivable Automation Software and Smart Payments technology, ensuring the most intelligent Receivables and Payables financing solutions for real-world businesses. The deep value-add of this technology is exemplified by three core Lending Strategies currently available on Kasu:
Apxium’s ‘Professional Fee Funding’ (PFF) and ‘Whole Ledger Funding’ (WLF) Lending Strategies specialise in financing the invoices of high creditworthy Accounting Firms (for PFF) and Work-in-Profess + Receivables ledgers of Accounting and Law Firms (for WLF) in Australia, North America, and the U.K. The Accounts Receivable Automation and Smart Payments technology maximises these Firms’ cash flows before lending a single dollar against their invoices and receivables by delivering deep value-add as follows:
50% Debtor Days Reduction: The technology automates the entire invoice presentment process. The resulting reduction in debtor days de-risks Firms’ debtor collections by up to 50% while unlocking cash tied up in debtors before advancing funds against invoices.
50% Reduced Administrative Overhead: The depth of automation reduces waste and administrative overhead by 50%, thereby unlocking more cash flow for the Firm.
30% - 40% Reduced Payment Processing Fees: The Payment Rails completely replaces the Firm's transactional bank, reducing payment processing fees by up to 40%, thereby delivering even deeper value-add.
This technology driven risk and security structure has been proven and validated over 8 years of its existence, with an impressive 0% historical loss rate.
The Accounts Receivable Automation Software and Payments Technology is deeply data integrated with Firms’ Practice Management Software. The depth of integration and real-time synchronicity provide real-time visibility over a Firm’s accounts receivable ledger and the payment status of every single invoice. Combined with the technology’s automated payment write-back (accounting journal entries) and payment reconciliation process, this ensures real-time debtor risk performance. The real time synchronisation also captures manual ledger adjustments, such as credit notes, reversals, cash payments etc., ensuring error free loan advance rate monitoring to mitigate the risk of loan-to-value (LTV) ratio covenant breaches.
Moreover, the Payments technology provides visibility over the identification and payments performance of every single client of the Firm. This level of transparency ensures real-time risk management, with risk metrics with Lenders to gain comfort over the performance of their loans.
The technology is underpinned by the following Intellectual Property:
Remote read and write access to global cloud and on-premise Practice Management Software which is used by the largest Firms. These systems are not built for external cloud connectivity.
SQL access enables data interrogation to create invoices and remotely write payments data (journaled) back into the Practice Management system ledger with no manual (human) intervention.
External/manual transactions outside of Apxium’s payment gateway (refunds, credit notes, reversals etc.) are updated in Apxium invoices in real time, and reflected in cloud hosted merchant and client portals.
This real-time synchronicity makes payment errors, duplicate payments, etc., impossible.
Apxium replaces the Firm’s transactional bank and provides bank-agnostic payment facilities for credit card and direct debit (ACH) at 30-40% savings.
As an accredited Payments Acquirer, Apxium has visibility over every debtor/payer, enabling its write data integration IP to perform the most accurate and automated write-backs (journal entries) to the PM system.
This IP ensures the most sophisticated risk reporting with real-time visibility over every invoice payment status and debtor payment, along with every external transaction recorded in the underlying receivables ledger.
Comprehensive details around this technology are provided in the Professional Fee Funding - Accounting Firms and Whole Ledger Funding - Professional Services Firms Sections.
Apxium’s ‘Tax Funding’ Lending Strategy - known as Tax Pay - is a FinTech lending innovation that solves the timing mismatch problem between cash revenues and tax expenses for profitable creditworthy businesses. The solution leverages Apxium’s Smart Payments technology to deliver automated payments on behalf of businesses, settled directly to their creditors in a wide range of currencies, with customizable approval mechanisms built-in to reduce payment fraud risk. In the case of Tax Pay, funds are settled directly to the Revenue Authority (i.e. Australian Taxation Office (ATO) in Australia and Internal Revenue Services (IRS) in the U.S.).
Apxium’s technology can account for each individual tax obligation for each individual tax period. In the backend, this calculates a separate loan repayment schedule for each tax obligation. But, from the client’s perspective, a single monthly repayment is made. Apxium’s technology simply apportions the appropriate amount from this single monthly repayment and allocates it to the relevant outstanding tax obligation (in a first-in-first-out method).
This method enables the client to continually ‘roll in’ new tax obligations into the single consolidated facility (subject to a total approved credit limit and debt serviceability metrics), whilst earlier tax debts ‘roll off.’ Tax Pay allows business borrowers to take advantage of up to 3 monthly payment holidays in a 12 month period (so long as they have the approved facility limit capacity).
This flexibility is an important selling feature when compared to the inflexible and hardened approach of government revenue authorities and competing lenders whose non-existent relationships with target clients (and their accountants) sees them offering inflexible loans with predatory pricing and terms (akin to a ‘last resort lender’). Additionally, interest charges on a Tax Pay loan are completely tax deductible (i.e. the tax/revenue authorities in Australia no longer allow interest associated with their payment plans to be a tax deduction).
Eligibility and credit due diligence is undertaken with the assistance of borrowers’ Accounting Firms, with which Apxium holds deep relationships. Apxium already has some degree of credit history over these businesses, given Apxium’s visibility over their real time payment performance of accounting fees (i.e. Apxium’s AR Software and Payments Technology is fully data integrated with the receivables ledger of their Tax Agents' Practice Management Software).
Comprehensive details around this technology are provided in Taxation Funding (Tax Pay) - Diversified Businesses Section.
