There has arguably never been as much focus on sustainability and ethical business practices, which are increasingly scrutinised when it comes to a company’s partners and suppliers. The topic of ESG (Environmental and Social Governance) is especially hot and set to rapidly spread its influence into all aspects of a business’ operations. Even the sole practitioner accountant will soon need to have a view on the ESG focus of their suppliers and business partners.
In the face of current business challenges, adaptable options are required which give a business and its finances flexibility. Rather than financing products which lock companies in for lengthy terms and charge eye-watering interest rates, practitioners and accountant advisors need to be aware of fresher alternatives. Through the emergence of more alternative finance options specifically designed for SME use, alternative finance is offering greater choice for businesses to take more control of their balance sheets.
AltFi options, like AREX, are where SME business needs can match the need for sustainable and ethical business practices. We built our business model from scratch as a more ethical way for businesses to access cash through a marketplace approach to financing invoices. This means that the business gets better rates of return, from a longstanding process traditionally held in the hands of few providers. This lack of competition led to invoice financing often considered as a last resort decision, due to archaic and unsustainable terms.
With the introduction of newer entities like us, companies seeking more latitude with their cashflow can use financing on demand, essentially by reducing their debtor days to 0, tapping into financing as and when needed. As a result the returns to the business are much more substantial and sustainable.
Rooting operations in more sustainable business models is a hallmark of emerging AltFi options. For us, the belief in equality of access to capital for SMEs who need it is a foundational one, and a more ethical stance to the people we do business with grows out from that point.
Businesses of all types will soon need to consider the credentials of those they work with. Between the recent IPCC report on climate change and asset manager BlackRock’s proactive stance when it comes to sustainable and ethical investments for its clients, there is a dramatic shift toward ethical, green and socially conscientious business.
The coming months and years are about restabilising post-Covid impact but also about looking to a more sustainable future. Checking these aspects of suppliers and partners now will set you in good stead for your future business development - not to mention potentially opening up new and agile ways of managing the company books.
About AREX Markets
AREX is a competitive data-driven Fintech company aiming to bridge capital market liquidity and SME cash flow needs.
Our mission is to help empower SMEs by providing a truly innovative mechanism for them to access their own cash without paying a premium.
We unlock cash trapped in invoices by providing your Clients an embedded finance solution. Clients can sell invoices directly from their Xero account and have the money in their account the next day. We charge the SMEs a one-time fixed fee and they are free to use us on an individual or recurring basis.
We drive the cost of financing for SMEs down and work exclusively with Accountants. With AREX, your clients can focus on growing their business and not their daily cash flow