The primary aim of this collaboration is to provide Universal Partners customers with digital invoice and trade finance services thus improving Universal Partners’ portfolio of products. Through this partnership, Muse Finance will put forward a range of digital factoring and trade finance services, such as invoice financing and supply financing, all of which were designed to offer UK-based SMEs a clear overview of their cash flow and financial standing.
According to ffnews.com, SMEs that are looking to expand internationally face challenges such as cross-border payment uncertainty, exchange rate instability, and extended waiting periods for payments or goods receipt. By offering foreign exchange strategies and same-day cross-border payments, Universal Partners supports the expansion efforts of SMEs and helps them mitigate these risks.
By working with Muse Finance, Universal Partners will also gain the ability to mitigate liquidity concerns by leveraging digital factoring and trade financing solutions. In addition, the invoice-based financing solutions provided by Muse Finance allow Universal Partner’s customers to receive payment before the invoice’s settlement date or make payments to suppliers while keeping the funds for up to 120 days.
The partnership between Muse and Universal Partners also comes in the context of Brexit ambiguity and a volatile governmental fiscal policy, factors that contributed to the closing of 43% of SMEs in the UK according to businessleader.co.uk. Companies that managed to overcome these challenges and keep their doors open started considering alternative finance methods, including financing tools that don’t rely on putting small businesses into more debt. One example is Invoice Finance, a service provided by Muse, which can give small businesses access to tied-up funds in unpaid invoices.
Muse Finance launched its Supply Finance product in June 2022 as a new solution combining supply finance and invoice finance, to help businesses pay overseas suppliers while unlocking cash tied up in their pending invoices.
With Supply Finance, Muse pays suppliers on its customers’ behalf for goods they are bringing into the UK from overseas for their business. By doing so, Muse’s customers benefit from an increase in cash flow flexibility while they wait for goods to arrive in the UK, repaying the loan over a 120-day period. By integrating Invoice Finance, Muse also subsequently eases the repayment of Supply Finance by enabling customers to claim 90% of the value of their invoices within 24 hours.
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