To date, small business finance provider and 2018 Alternative Lender of the Year, Liberis, has advanced over £240 million in funding to more than 8,000 UK small and mid-sized businesses. Its done this via its innovative Business Cash Advance.
Instead of a cumbersome loan repayment at the end of the month, Modulr's automated rules engine and flexible payments service means businesses only need to pay back Liberis when their customers pay them, via an agreed split from their card takings.
Liberis advances small businesses that have been trading for more than four months and that accept credit and debit card payments from customers, between 100% to 125% of their monthly card takings.
The finance provider aims to make repayments for its Business Cash Advance as simple as possible for customers. It also wanted to speed up customer onboarding so that funding could be advanced to small businesses without unnecessary delay.
Automated payment splitting
Using Modulr's payment platform, Liberis can now set up a settlement account at the back end of a businesses' card terminal so that repayments can be automatically repaid via their card takings. Modulr's payment platform also allows Liberis to configure automated payment rules for each customer account so that an agreed percentage is taken to repay Liberis, with the remainder sent to the business owner.
“If we didn’t have that automated splitting capability, then our funding would look very similar to a standard high-street loan and give very little benefit to the end business,” says David Spickett, UK Managing Director at Liberis. “It’s just made that customer journey a lot slicker, smoother and faster, which has allowed us to invest more in customer experience, customer service, and hopefully, continue to grow the business.”
Before working with Modulr, Liberis had a highly manual, overnight process for setting up customer accounts, which meant the funding process took a lot longer. Via its integration with Modulr, a two-day funding process was reduced to just five minutes and Liberis achieved a 35% reduction in costs for processing payments.
“That first step is now so much faster,” says Spickett, “we can do same-day funding for our customers if all the documents are in order.”
Modulr's industry-leading service-level agreement guarantees that the majority of payments reach customers' accounts in 90 seconds. Based on the previous day's card transactions, money is typically in the businesses' account before they wake up the next morning.
Having a technology partner like Modulr means Liberis can continue to innovate and lend more to UK small businesses. “Modulr are still moving forward, offering us different improvements in their process and capabilities,” says Spickett. “We’re talking about innovating other products and solutions to benefit UK small businesses.”
What Liberis thinks
Small businesses are the lifeblood of the UK economy, yet many still struggle to get much needed financial support from traditional providers, says Liberis CEO Rob Straathof. “At Liberis, we’re on a mission to fund small businesses to help them achieve their ambitions — and Modulr’s payment technology has been integral to this goal. With their API we can seamlessly split payments for our customers, making the Business Cash Advance process even smoother. We’ve had brilliant feedback both from the Liberis team and our customers too.”
Rosie Baker, Finance & Treasury Manager at Liberis says Modulr has revolutionised the way her department works.“They’ve provided us with a quick and easy scalable solution for automatic payment processing. The platform is user-friendly, allowing us to give our customers a better, seamless experience and saving the team time manually processing payments.”