Oxygen Finance Ltd (“Oxygen”), the leading early payment provider, has today (16 February) announced the acquisition of Satago, the all-in-one, on-demand cash flow finance solution for SMEs.
The transaction will see the two businesses working together to offer comprehensive early payment, finance and cash flow solutions for both large buying organisations and suppliers of all sizes, including small and medium-sized enterprises (SMEs).
Oxygen provides the capability for large public and private sector organisations to pay suppliers ahead of contracted terms in return for a discount against their invoices. The company offers functionally-rich technology integrated with the buyer’s existing ERP system, improves Purchase to Pay (P2P) processes andundertakes supplier on-boarding activities.Buyers generate savings and efficiency gains through the operation of an effective payment strategy.
Satago provides cloud-based technology that integrates with an SME’s existing accounting software, giving it the same level of credit control as larger businesses. By automating and managing communication with debtors, it helps clients to generate invoice reminders, visualise credit risk and formulate policies and limits, all with the aim of improving cash flow. Combined with a dynamic, on-demand selective single invoice finance solution launched last year, Satago is the only finance provider on the market to assess and actively improve clients’ financial health as well as offering them finance.
Ben Jackson, CEO of Oxygen, commented: “Satago’s offering is hugely complementary to Oxygen, accelerating our growth and enabling clients to interact with their suppliers through automation that would have been inconceivable just a few years ago.
“Oxygen’s early payment solutions for large buyers, which facilitates payment to suppliers ahead of contracted terms, is the perfect partner for Satago’s proven business model of giving SME suppliers the tools in their native accounting applications to improve receivables management.
“Combining these capabilities, Oxygen and Satago will be well positioned to lead the market in delivering modern, integrated payment and receivable strategies for large buying organisations and their suppliers, SMEs included.”
Steven Renwick, CEO and founder of Satago, added: “Satago is a natural fit for Oxygen. Our accounts receivable technology and supplier-focused single invoice finance facility is neatly complemented by Oxygen’s early payment technology.
“We are really excited to combine the businesses to do more to help UK SMEs get paid even faster and improve their cash flow.”
Late payment is a continued problem for many SMEs and micro businesses in the UK, with many relying on getting paid during their debtor day period to maintain cash flow and avoid facing a shortage of working capital.
According to a recent report by Bacs Payment Schemes Ltd (December 2016), nearly 50 per cent of UK SMEs are paid late, with an average debt of £32,185 and £26.3billion combined.