New web service challenges big factoring companies

The company ‘Billhop’ has developed a service to help small and medium-sized businesses hold on to their liquidity. Today, many small businesses operate under a lot of pressure, and it can often be difficult to pay suppliers on time. Therefore, many companies are forced to mortgage or sell their own invoices to various factoring companies. However, by using a company card, and its credit period as a buffer, the threat of bad liquidity can be avoided. Almi Invest was part of an issuance that generated more than SEK12 million for Billhop.

Strained liquidity is a familiar phenomenon for most small businesses. This leads to constant stress over paying supplier invoices on time. In order for the equation to add up, companies must have the vital revenue from their customers before paying their suppliers. Therefore, many small businesses sell their invoices to various factoring companies in order to be able to pay suppliers when their invoices start coming in. However, this is a problem when the cost of the factoring fee, a certain percentage of the invoice amount, reduces the company’s own revenue:

– This service means that it is now easier and more cost-effective for businesses to solve their liquidity problems. Through using Billhop, companies escape the cumbersome administrative processes that applications for factoring often require. In addition, companies' avoid transferring customer invoices, which is seen as a negative by many customers. We are aware that our business concept is a new phenomenon in the market and will subsequently require time. Therefore, we are delighted to have signed a long-term owner such as Almi Invest, explains Sebastian Andreescu, CEO at Billhop.

The credit on your card has you covered

Companies that use Billhop can pay supplier their supplier invoices with their existing cards. They thereby take advantage of the available interest free credit period which would otherwise often remain unused. This means that the date companies have to have funds readily available to pay their suppliers by is shifted, as credit cards generally have 30-60 days of credit. In addition, the company can reduce the need to sell their customer invoices by instead deferring the payment date on their supplier invoices until they have received payment from their customers.

Solving a problem

The service Billhop provides also has clear advantages for suppliers, as they are paid directly and on time.

Billhop has identified and created a solution to an important and urgent problem within the world of small businesses. There are hardly any business, especially in the category of start-ups, that do not have a constant struggle with their liquidity. I am convinced that their expertise in the area and its service, means they will be successful, explains Johan Crona Investment Manager at Almi Invest.

The very foundation of Billhop’s system is primarily based on its own software platform which was developed in 2011. The company is authorized by Finansinspektionen to operate in accordance with the rules that apply to payment service providers.

For more information, please contact:

Johan Crona, Investment Manager Almi Invest tel +46 73-984 31 35 johan.crona@almi.se

Sebastian Andreescu, CEO at Billhop tel: +46 73-251 51 71 sebastian.andreescu@billhop.se

Maria Kessling, Chief of Communications at Almi Invest, tel +46 76-880 88 10 maria.kessling@almi.se

About Almi Invest

Almi Invest is Sweden's most active investor in young growth companies. We create, with expertise, capital and networking opportunities for companies to grow. Investments happen from the seed phase to the expansion phase. We can be found across the whole country, with both regional knowledge and an international perspective. Our portfolio contains around 400 young growth companies in many different industries. Almi Invest is a subsidiary of Almi Företagspartner AB.

About Billhop

Billhop allows you to pay your bills or invoices with your credit card. By doing this, you can extend the time you have to pay, as well as having the opportunity to enjoy the many advantages your card may offer, for example bonus points etc.

Billhop was founded in 2011 by four entrepreneurs, Erik Malm, Carl Dohrmann, Johan Larsson and Lars Martin Norviit. The company is a registered payment service provider and is under the supervision of Finansinspektionen.