Euler Hermes makes strategic investment in APiO Inc.; announces partnership to launch first-of-kind, invoice-based, working capital solution called APiO EarlyPay
BALTIMORE |SALT LAKE CITY—July 10, 2019—Euler Hermes, the world’s largest trade credit insurance company, today announced an investment and strategic partnership with APiO Inc., a Salt Lake City-based FinTech company, to facilitate an innovative working capital solution called APiO EarlyPay™ for small- to medium-sized businesses (SMBs). APiO EarlyPay enables SMBs to address cash flow challenges in an entirely new way. By directly integrating with leading accounting systems, SMBs can register and get immediate funding on eligible invoices in just a few minutes. APiO EarlyPay leverages the power of big data, AI and machine learning to better understand the risk and creditworthiness of a SMB and its customers. This new EarlyPay solution allows APiO to discover, score, insure and fund invoices in less than a minute. Eligible invoices are insured through APiO’s partnership with Euler Hermes.
According to APiO CEO William Borghetti, “Our proprietary technology allows APiO to simultaneously provide same-day funding for SMBs and create a totally new, high-quality asset class for institutional investors. EarlyPay represents a game-changing way for SMBs to get working capital. The SMB market is desperate for a simple and easy working capital solution. Our solution is fast, simple and easy to use, and can fund in the same business day.”
James Daly, president and CEO of Euler Hermes Americas, explained, “Partnering with APiO further demonstrates Euler Hermes’ position at the forefront of innovation and investment. We’re excited to work together with the APiO team to create new ways to leverage our industry leading credit insurance products.”
Despite the enormous amount of excess capital available on the sidelines, access to working capital remains the number one business challenge for SMBs. The impact of this lack of business credit is dramatic. It creates a challenging environment for SMBs which spend, on average, 33 hours just to apply for a loan. In addition, approval rates nationally average 23 percent. Considering 85 percent of the $30T in B2B commerce is conducted on terms (with delayed payments from customers), ApiO.EarlyPay solves a massive cash flow problem with a simple and easy to implement solution for SMBs.
Daly continued, “This innovative application of credit insurance creates a win for APiO Marketplace investors who will now be better able to manage risk and improve overall portfolio returns.”
Euler Hermes provides credit insurance to APiO Marketplace investors to protect against potential default by the SMB’s customer. This credit insurance component can be leveraged across an entire investment or across individual portfolios, depending on specific needs. APiO leverages the Euler Hermes’ Single Invoice Cover API to automatically quote insurance, bind coverage and administer policies for APiO Marketplace investors.
|Euler Hermes Group||APiO|
|Lee Rech, LBR Communications
+33 (0)1 84 11 51 14
APiO Inc. is a Salt Lake City-based FinTech company focused on helping SMBs achieve faster access to the financial services they need and simultaneously giving financial services firms the tools and technology to improve how they serve their SMB customers. APiO’s offerings include: APiO.FINANCETM – valuable finance tools for SMBs that include cash flow analytics, credit scoring and APiO.EarlyPayTM, a revolutionary invoice-based working capital solution; APiO.CREDITTM – a breakthrough new product suite built on direct integration with leading accounting systems that provides financial services firms with a rapid, secure and cost-effective way to acquire and normalize financial data, evaluate risk and monitor an SMB’s creditworthiness in real-time; and APiO.CAPITALTM – cash management solutions for corporations and institutional investors that offer higher yields on cash than money markets, term deposits or treasuries https://apio.capital/.
About Euler Hermes
Euler Hermes is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk. Our proprietary intelligence network analyses daily changes in corporate solvency representing 92 percent of global GDP. We give companies the confidence to trade, and be paid. We compensate your company in the event of a bad debt, but more importantly, we help you avoid bad debt in the first place. Whenever we provide trade credit insurance or other finance solutions, our priority is predictive protection. But, when the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business. Headquartered in Paris, Euler Hermes is present in 52 countries with 6,050 employees. In 2018, our consolidated turnover was €2.7 billion and insured global business transactions represented €962 billion in exposure. Euler Hermes’ Americas’ regional headquarters for the United States, Canada and Brazil is located in Owings Mills, Md. Founded in 1893, Euler Hermes North America is the world’s largest and longest-established provider of trade credit insurance and accounts receivable management solutions. The company protects and insures around $250 billion of regional trade transactions annually, serving small, medium and multinational clients across a range of sectors. The company employs 430 people regionally and serves clients from more than 50 locations in North America and Brazil.