Koverly, the global B2B payments vendor, has launched “Pay in 30”. Providing customers with a means to defer FX Payments for 30 days with no cost to buyer or seller, with the seller receiving their funds immediately. The new offer adds to the existing payment solutions Pay Now. This offers unlimited payments with no fees and the best FX rates and pay weekly, which allows smaller payments in fixed weekly amounts over 4, 8, or 12 weeks.
Koverly was founded in 2021 and raised $7.6 million in seed funding from Accomplice VC, One Way Ventures, and Vinyl Capital (whose innovatively designed website is worth a quick look at). One Way Ventures made their investment in 2021. It is unclear whether some of the funding is more recent. Though this is the first time it was made public.
The “Pay in 30” option means that vendors get paid immediately from your Koverly account. The buyer has 30 extra days to pay at no additional cost. The service is only available for FX transactions.
Igor Ostrovsky, CEO of Koverly, commented, “Inventory is the lifeblood for importing businesses, and it is directly impacted by cash flow. Our KoverlyPay offering for FX transactions is designed to give businesses enough extra working capital to unlock at least one additional inventory turn per year. For a typical importing business, this can boost annual profitability by 50-100%. This is a game changer for global trade.”
While the website indicates that there are no additional costs for transactions, the Koverly terms indicate when fees are due to Koverly, especially for non-payment. Charges, including interest, are due should Koverly members be unable to pay. Though there is no definition on interest, which is a concern.
Who are Koverly
Koverly is a fast-growing company on track to lend $70 million in the next 12 months. It has identified a niche in the B2B payments market with this new FX offering. The B2B payment platform first offered FX payments in 2022. The volume of these payments now makes up 50% of the total flowing through its platform.
To sign up with Koverly, US businesses have access to a fast and customised underwriting process of up to $500,000 within 24 hours. The process does not impact an applicant’s credit score. Once approved, customers can access all the payment deferment options Koverly offers.
When using Koverly, bills are paid within 1 to 3 business days after checkout. Customers have visibility of payments, both to the seller and for their own payments to Koverly.
Roger Scommegna, owner of Flying Blue Imports LLC, commented, “Koverly’s option to extend payments over time has been extremely helpful for managing cash flow. We do a lot of work with holiday gift packages that are sold in large volume to retail outlets, like Costco. As a result, we have to pay for an enormous amount of product 10 months before sales begin. Spreading payments over several months gives us more buying power during this time and frees up capital for other business initiatives, like sales and marketing.”
Koverly highlighted four of the benefits for organisations using their B2B payment solutions:
- Reduced foreign exchange rates – up to 50% less
- No wire transfer fees – up to $40 savings per transaction
- Defer FX payments by 30 days at no cost
- Further extend bill payments for up to 12 weeks
Enterprise Times: What does this mean
This is an interesting solution that will certainly help importers’ cash flow. Koverly is open about the fee structure, which is generally free, except where credit cards are used for payments where they seem to pass on the merchant fees. It isn’t clear where Koverly profits, possibly the FX rates and the volume they process.
This seems an excellent solution for US organisations looking to mitigate cash flow risk, especially when importing goods. Firms should carefully read the teams and conditions and consider currency fluctuations when deciding on the payment method.
