Australian small to medium-sized enterprises (SMEs) are currently owed $26 billion, greatly impacting cash flow and operations, according to the latest Late Payment Report 2016.
Fintech start-up ezyCollect, an automated debt collection company, recently raised $1.25 million in an investment round led by Tank Stream Ventures.
The start-up is gearing up to revolutionise the traditionally nuanced and inefficient process of debt collection through their service which automates follow-up messages and manages disputes.
“We will use the funds to raise awareness of the product and to make available our technology to thousands of SMEs struggling with cashflow because of slow-paying customers,” said Arjan Singh, CEO and co-founder.
Helping SMEs with debt collection
The software will help SMEs get paid faster, providing immediate return on investment (ROI), by accelerating accounts receivable recovery. ezyCollect proactively chases payments to guarantee availability of capital and reduce admin cost and wasted time.
ezyCollect has proven capabilities of reducing a company’s overdue debt by 50 percent in less than 90 days, allowing business owners to dedicate themselves to managing new clients and customers rather than debt collection.
“The solution had to be easy for SMEs to use and implement,” said Singh. “We did this by simplifying the traditionally complex and inefficient process of debt collection.
“We automated manual actions such as follow-up emails and SMS and scheduled follow-up tasks for staff such as managing disputes and making calls. The seamless integration with accounting platforms MYOB and Xero means businesses get started with ezyCollect in less than 30 minutes.”
Singh and his co-founder Raj kuckreja started the fintech company in Sydney after dealing with the frustration of slow-paying customers and limited time to deal with the problem.
Singh explained that ezyCollect was developed ATP Innovations, a tech incubator, “ATP Innovations provided the advice and support services critical to our growth from humble beginnings to significant disruptor in the SME accounts receivable management space.”
So far, ezyCollect has already signed up more than 1,000 SME users in eight countries.
Image (sourced): Raj Kuckreja, Jimmy Cooper, Arjun Singh