UK-based small businesses supplying the public sector will be able to get paid immediately, following the launch of a new instant invoice payment service by SME working capital provider Triver and procurement platform Elcom.
Triver uses a combination of Open Banking data and sophisticated AI to fund the short-term working capital needs of small businesses, providing advances on a business’ client invoices.
From initial application to account opening, it takes 20 minutes for funds to appear in a business’ bank account, compared to the up to four weeks it can take for a bank to open a facility and 24 hours to advance an invoice.
Triver is working in partnership with software company Elcom, based in the UK, which specialises in procurement services for the public sector and annually processes £15 billion of supplier invoices for government departments, agencies, and public bodies, including the NHS.
Together, the companies’ new facility will enable SME suppliers to the public sector to get paid straight away, thereby improving cash flow.
It comes ahead of the implementation of the Procurement Act this October, the aim of which is to help SMEs win some of the approximately £300 billion of public sector expenditure per year.
Jerome Le Luel, Founder and chief executive officer of Triver, said: “There is much hype around AI and financial technologies, but we are applying new tech to solve today’s real-world problems and help any small business right now.
“Solving the cashflow conundrum for SMEs supplying the public sector is a great example.”
Le Luel, formerly of Funding Circle, launched Triver in April 2023, after a £7 million equity fundraise, which included backing from Stride, and other seed investors Axeleo Capital and Motive Partners, with scout investment from Andreessen Horowitz and Sequoia Capital.
In November last year, Triver secured a £20 million debt facility with Luxembourg-based Avellinia Capital.
Since launch, it has funded more than £20 million of invoices, supporting in excess of 250 UK SMEs.
William Lock, chair of Elcom, said: “Public sector contracts can be transformative for many small businesses, but delivering at scale can squeeze working capital.”
He called the partnership with Triver a “win-win” and said it solves the funding gap.
“Public sector service providers can choose small, specialised and often local businesses, benefiting the local economy. Meanwhile, these SMEs can now grow their businesses through significant and reliable contracts, without waiting for large invoice payments,” Lock added.
Main image Triver’s founding team L-R: VP of product Gui Valerio, chief commercial officer Gokce Yucealpan, VP of engineering Ben Emery, chief risk officer Jenny Holt, and founder and chief executive officer Jerome Le Luel.
