Palo Alto, CA, – June 30, 2014 – Payplant today launches its digital, on-demand Pay Me NowTM invoice-financing service aimed at helping businesses and App developers obtain fast and dependable funding. Businesses can get cash for their invoices as needed by using Payplant’s proprietary Invoice Scoring and workflow engine. Payplant is also partnering with state governments, starting with Illinois, as well as large companies to help vendors frustrated by persistent slow payments.
Capital for purchasing the invoices is provided by the associated Payplant Alternatives Fund which expects to lend $100 million in the next year. In Beta since last July, Payplant has already financed invoices from such giants as Amazon, HP, Dell, VM Ware and others.
Payplant has been approved by the State of Illinois, which has billions in past-due invoices, to provide accelerated payments to the State‘s vendors at NO cost to the vendor. This is an example of how Payplant can work with large Enterprises to get faster payments to their vendors without the Enterprise changing its payment cycles or processes. In the enterprise instance, the vendors would pay the fees.
For growing businesses which must continue to pay employees, market products and buy inventory, waiting 30-180 days for payment can be a crushing problem with no good alternatives. Banks, which typically offer the best rates, are unlikely to provide loans to smaller businesses, without years of history. Another option, traditional factoring companies, charge extremely high rates and are very restrictive.
Payplant‘s Pay Me NowTM service fills this gap. Using Payplant‘s all-digital workflow, growing businesses can get paid quickly, with minimal hassle. The service provides 80% of the amount owed on invoices while charging much less than traditional options. Rates start at 1.2% of the invoice amount per month – about half of the typical non-bank alternative. Businesses get an instant preliminary quote online. Payplant‘s proprietary Invoice Scoring Engine then combines the client-provided information with data from public and third-party sources to make the funding decision. Funding is within 72 hours.
Financing For Entrepreneurs, by Entrepreneurs
Payplant is founded by two very successful entrepreneurs, Dr. Ronjon Nag and Neerav Berry, who personally understand the challenges of financing a growing business. They co-founded and sold Cellmania, an App Store platform, to Blackberry and created Payplant to address the particular challenges of App developers that face a cash crunch while waiting for payment from the App Stores. Advancing payments to these developers provides fuel to promote and grow their Apps.
’We were pioneers in the App business and know the pain caused by not getting paid on time,‘ said Dr. Nag, co-CEO and founder, Payplant. ’Banks rejected us for loans even though we had top-notch customers. This drove us to develop a new way to solve this problem.‘
Features of Pay-Me-Now service:
Payplant provides growth financing for entrepreneurs, by entrepreneurs. Its Pay Me NowTM digital invoice-financing service provides cash to businesses when their customers pay too slowly. Payplant delivers fast and reliable funding, at very attractive rates and is completely on demand. For more information, visit www.payplant.com.