MYOB Moves Into Invoice Financing
Accounting software company MYOB is preparing to move into invoice financing, but says it is undeterred by the recent collapse of Anglo-Australian fintech Greensill Capital.
MYOB CEO Greg Ellis says the platform’s invoice financing business model is different, with the company acting as a third-party financier that lets suppliers borrow money against their unpaid invoices.
Under that model, platforms such as MYOB pay customers the value of their invoices, often within 48 hours, against a fee which can be up to 5 percent of the invoice value.
Greensill provided a controversial service known as supply chain financing, buying invoices from big companies and paying their suppliers, often small businesses, early for a fee.
“Invoice financing to us is just one execution of managing cash,” said Ellis. “It’s something that MYOB definitely will be in, and we’ll be in before the end of the calendar year.”