UK fintech start-up Avrium has launched an online platform designed to help start-ups and small businesses manage cash flow, which it identifies as “their biggest risk factor”.
Edinburgh-based Avrium’s platform aims to help SMEs better understand their financial position and potential risks, by using credit data provided by company credit analyst Creditsafe that offers insights into the financial health of customers and suppliers.
Avrium is the first tool launched by the strategic IT consulting firm Atom Ventures, a team of former business leaders, senior technical engineers and business consultants offering technology and operational advice to start-ups and SMEs.
The web application plugs into cloud-based accounting software, such as Xero and QuickBooks. A white label product by Avrium is also available or accountancy practices.
Guarding against unforeseen risk
“It’s very clear how crucial cash flow awareness is for the health and growth of most SMEs,” says Bhairav Patel, Avrium’s CEO. “As a director, even if you’re not directly responsible for book-keeping, it’s crucial that you understand what is happening with your incomings and outgoings.
“From the start, we wanted to build a cash flow management solution that any business owner could intuitively use to insulate and protect themselves from the big unforeseen risks – a major customer reducing orders, or a supplier increasing costs.”
Avrium notes that there is also a range of tools to help mitigate these risks, such as invoice financing and debt collection services through partnerships with Atradius Collections and Accelerated Payments.
The company cites a study conducted by USB, which found that 82% of small business failures can be attributed to poor cash flow management, or poor understanding of how cash flow contributes to business. This makes cash flow the number one reason for SMEs failing.
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