AR financing is where a business uses their outstanding invoices as collateral for a loan. You pay interest on that loan and you retain the risk of default by your Customers.

Lenders will require you to prepare records about your AR systems and collections processes. Qualifying for AR financing is often challenging and it is typically available only to larger businesses with more sophisticate systems and processes.

Factoring is where you sell your receivables at a discount to a buyer. Some arrangement involves you removing the risk of customer default and the buyer of the receivable typically takes responsibility for the collections.

Often referred to as items owned by a business which help it create value – such as cash, investments, property, equipment, licences, patents and trademarks. It is frequently considered to the cash or equity contributed to the business by founders, owners and investors.

Refers to any loan product used by a business for business purposes. Involves interest and fees and a fixed or revolving term. For SMBs, typically involves collateral security and/or personal guarantees from business owners. Business loan terminology see them often referred to as overdraft or instalment loans.

Working capital is the difference between current assets (cash, AR, inventory) and current liabilities (AP, debts due <12 months). Businesses need positive working capital to invest and grow

Finstro is a B2B Trade Payments platform that gives Finstro account holders the ability to pay and get paid for B2B transactions on terms that suit their business.

Finstro started in Australia in 2014 and launched in the US in Q2 2022. Since its origination, Finstro has already served over 7,000 SMBs.

You must have a Finstro account to access Finstro - it’s free and involves no obligation. Once you have a Finstro account, you can apply for the solution that best suits your business, whether paying by Finstro or getting paid by Finstro. Either way, we are happy to support your B2B Trade Payment requirements.

Suppliers can partner with Finstro and start accepting Finstro payments for their B2B Trade with SMB Customers.

Payments can be accepted via card networks or closed loop ERP system or file share integrations.

We work with you to understand your existing credit sales, and those new and existing SMB Customers that would benefit from paying you by Finstro.

We then co-brand marketing materials to invite your targeted SMB Customers to start paying you by Finstro.

Getting under way is straightforward. Reach out to our Partner Sales team to get started at sales@finstro.com or complete a form here.

SMBs invited by their Suppliers or directly by us can apply for a dedicated credit limit to pay a specific B2B Trade supplier, or a general limit to pay any vendor anywhere for business purchases.

When opening a Finstro Account, you can get access to the convenience of a card to make business purchases with those Suppliers and vendors who accept and prefer card networked transactions.

You can obtain a virtual card which will be accessed via the Finstro Mobile App. A physical card will be sent to your business’s physical address via mail in 5-7 business days.

Once a credit application is complete, Finstro will perform a soft inquiry on the business and signer’s credit file. Unlike a hard credit inquiry, this will not affect your credit score.

You can invite other beneficial owners and authorised signers when you start the application process. They will receive an email that allows them to complete the application.

Depending on the product and account opening process you are invited to follow, your Finstro Account may be created immediately. However, you can only start paying by Finstro when the credit application process is completed and approved.

Finstro gathers personal information as required under applicable Regulations which are intended to improve financial transparency and prevent criminals and terrorists from misusing companies for illegal activities. It helps us prevent ID theft and fraud. The following information is required for any individuals that beneficially own 25% or more of the business:

• First and Last name

• Residential address

• Phone number and work email

• DOB

• Personal ID including: Tax File Number (Aust); Social Security Number (USA); Medicare Card Number (Aust) or Passport number (Both)

Finstro has system API-based and file sharing integrations with some of the most commonly used accounting and ERP systems, including: QuickBooks Online, NetSuite, SAP, Oracle, MYOB, and Xero. Through these integrations, Finstro can sync transactions and customise field selections between your Finstro Account and the objects in those business systems.

Finstro has been tested on a number of devices and browsers.

For mobile devices we support:

• iOS 10 and newer

• Android 5.0.1 and newer

For web browsers, we recommend using the latest version of Google Chrome.

AP financing is where a business enters into an arrangement to finance the payments to Suppliers or trade creditors. It is a trade purposed form of credit that supports B2B Trade. Finstro solutions involve AP financing.

This article describes the information you will require to complete the Finstro Credit Application and start paying by Finstro.

This article describes what Finstro considers in the assessment of your credit application to pay by Finstro. The main assessment factors are tabled below. However, each application is evaluated individually and therefore other factors may be considered. If you are approved, your credit limit will be set based on the information provided and may change over time based on your account’s performance.