Finstro, a technology-powered provider of trade credit and payment solutions for B2B commerce, is expanding to the U.S. market. The Australian firm, which has operational centers in Asia and Europe, is leveraging its proprietary, data-driven credit engine to create a card solution and an integrated ERP solution to uniquely solve risk, cashflow and client onboarding challenges that exist in supplier/buyer relationships.
Founder and CEO, Brad Prout, has relocated to the US to oversee the expansion and the company has recently increased its global team by 25% and is still actively hiring across all areas of the business to support the planned rollout in the US before the end of the summer.
“Over half of all suppliers in the US have to provide goods and services to their business customers with trade credit to effectively compete. Finstro has more efficient tools to extend and manage this credit. Suppliers remove risk and get paid instantly and buyers gain access to more flexible payment options and terms. Ultimately, this removes friction from the B2B commerce relationship and allows suppliers to focus on their core business,” said Prout.
Finstro’s solution is industry agnostic and well-suited to situations where buyers have seasonal or longer inventory and revenue cycles than the payment terms required by their suppliers. Strong industry use case examples include agriculture, printing, packaging, industrial supplies, professional services, wholesale grocery, chemical and electrical equipment.
Data-driven dynamic credit decisioning engine
At the heart of Finstro’s technology platform is a proprietary, data-driven and automated credit decisioning engine that utilizes internal and external data around credit, identity, payments, fraud, financial accounts and bank statements to dynamically inform risk decisions.
The platform itself is API enabled and able to integrate directly into existing supplier ERP systems, to provide a configurable, 100% digital process for suppliers and their buyers.
“Suppliers can adopt the Finstro solution to generate a sales advantage over their competitors while at the same time focusing on their core business,” continued Prout. “The value proposition to both the supplier and the business customer is very compelling. As we emerge from COVID-19, both buyers and suppliers need accessible, flexible and relevant trade credit solutions that can strengthen and grow their businesses.”
The Finstro platform has received numerous industry awards in Australia, including being named 2018 Fintech Australia and 2019 Optus Fintech Award finalists.
Bringing digital best practices from the Australian B2B market
Finstro started in Sydney in 2014 and since then has supported more than 7,000 small and medium-sized business (SMBs) and provided over AUD $1 billion in capital.
The firm continues to grow rapidly as the Australian economy emerges from COVID-19. Notably, during the pandemic, Finstro was approved by the Australian government to distribute government guaranteed loans. The company is on track to grow its Australian customer base by 200% in 2021 as it continues to support businesses operating in all industries across Australia.
Finstro brings together innovative thinking, experience, and technology to deliver trade credit and payment solutions to suppliers and their business trading partners large and small.
Led by an experienced leadership team, and with more than 80 fulltime staff of which around 50% are IT professionals, the company has received many awards in Australia for innovation, technology, firm culture, and business acumen including the Australian Business Awards (ABA) 100 for Business Innovation in 2020, the ABA 100 award in Business Technology in 2020, the Sydney City Business Awards for Outstanding Employer of Choice in 2019, and the New South Wales (NSW) Business Chamber Awards for Outstanding Employer of Choice in 2019. Finstro was also a finalist in two categories for FinTech Australia’s Finnie Awards 2018 – Emerging FinTech Leader of the Year (under 35) and Excellence in Business Lending – as well as a finalist in the 2019 MyBusiness Awards for FinTech Business of the Year.
Finstro’s headquarters are in Sydney and the company has a presence in Australia, Manila, Vietnam, New York, Atlanta, Turkey and Brazil.
For ongoing updates on the company and its plans for the US market, follow Finstro USA on LinkedIn at https://www.linkedin.com/company/finstrous/
1Goldman Sachs Global Technology Equity Research report, September 16, 2018