Composite and Advance: EvenFi's two tools for companies to speed up collections

Many of the cash flow problems of companies that base their business on selling products and services depend on the lengthy and sometimes even inconclusive negotiations that can be triggered in the relationship with their customers.

The fact is that, as crucial as they are, sometimes a good marketing strategy and good products are not enough to bring a sale to a successful conclusion. In fact, there may be factors at play that are independent of the work of the manufacturing company and dependent, on the contrary, on the economic situation in which the customer himself finds himself.

Despite being convinced of the quality of the product, for example, the latter may not have sufficient liquidity to purchase it and, as a result, be reluctantly forced to abandon the purchase.

From the perspective of company-customers, this is also a significant problem.  In fact, it not infrequently happens that several businesses find themselves forced to put their development plans on hold due to cash flow problems or the lack of sufficient liquidity to purchase new materials and/or new machinery essential to make them.

A slightly different issue, on the other hand, relates to the long time frames involved in contracts. Indeed, it is true that sometimes contracts between companies can be quite lucrative for those offering certain types of services. Yet, the monthly deferral of payments under their often quite long terms leads companies to defer, and thus slow down, even planned investments for their growth.

Within the real economy, such circuits are all too often found, and for this reason, EvenFi has come up with two solutions that are particularly suitable for companies that do not wish to delay investments and purchases for their projects: Composite and Advance.

Advance and the advancement of annual and multi-year contracts

Advance - from to advance, meaning to advance - is financing that allows companies to collect precisely in advance receipts from work contracts with other companies.

Any corporation can apply for Advance financing, albeit in B2B and through annual/multi-year contracts. By obtaining it, companies can immediately monetize annual or multi-year contracts with other companies, without necessarily having to wait for the scheduled monthly payments. In this way, while working under contract, they have the opportunity to meet short-term expenses and to invest, in the medium to long term, in the activities necessary for their own growth.

Applying for Advance financing, moreover, is extremely simple: the procedure is completely digital, is free of charge, and simply requires filling out the appropriate form on the EvenFi platform's business page.

The benefits of Composite for buyers and suppliers

Unlike Advance, Composite is a "buy now, pay later" payment system designed by EvenFi to facilitate rapid buying and selling between companies.

This system allows companies that sell products and services to other companies, online or traditionally, to quickly finalize their sales by offering them the option to installment the amount of their purchases for up to 12 months and at 0% interest.

This is a system that can help the real economy in two ways. First, because it allows businesses to pursue their projects without being forced to apply for financing to purchase the products or services needed to carry them out. Second, because it allows sellers to immediately cash in and finalize their sales, and moreover offer their customers a very attractive service.

Buying companies, in other words, will be able to make their purchases with peace of mind, without having to have the necessary cash immediately. Suppliers, for their part, will be able to collect the invoiced amount immediately, without having to take the credit risk on themselves or accumulate credits on their balance sheet.

How to activate Composite if you are a provider?

Activating Composite, if you are a provider, involves the following steps:

1. Fill out the form to register on EvenFi and request Composite activation.

2. Offer your customers to pay your bills in installments and at no cost, using a 100% digital and online payment system.

3. Receive on your EvenFi account the amount corresponding to the invoice disbursed, minus the service fee on the total invoiced amount.

Once the amount is obtained, your customer will receive a monthly debit request to their account and through SDD (also known as RID)

How does the Composite service work for buyers?

For companies interested in taking advantage of Composite to installment their purchases without any interest, up to a maximum of 12 months, it is first advisable to ask your supplier of choice to contact EvenFi to activate the service.

If you are a buyer, once the service is active:

1. You will receive a link to register your company on EvenFi in 4 minutes.

2. A MangoPay payment account, in your company's name, will be opened through which financing will be handled.

3. Upon approval of the project, you will receive a notice notifying you of the start of the transaction with the date of the request for payment of the first installment.

4. You will receive a monthly request to debit your bank account through SDD (also known as RID) to make the scheduled installment payments.

How do Composite and Advance projects work for investors?

Composite and Advance projects are privately financed, fully digitally, on EvenFi's platform.

For users interested in investing in the available Composite and Advance opportunities, it should be kept in mind that these are projects with an Amortising type of repayment, a maximum duration of 12 months, and a minimum return that is, roughly, between 8 and 9 percent per year.

The major difference between the two types of loans is that in Composite projects it is the clients who repay the capital obtained through the financing on a monthly basis, while in Advance projects the onus is on the suppliers to make the repayment.