Online payment convenience is one of the biggest challenges for businesses today, especially in managing to gain adequate cash flow. The latter is a vital part of keeping businesses alive, especially when relating to managing receivables.
In the Philippines, it's a bigger problem. The business environment there isn't very friendly to small and medium-sized startups. Little access to affordable credit in the region places many of the startups in a position where they can't grow.
A Manila-based company called Acudeen is already trying to solve this problem thanks to its founder, Magellan Fetalino III. His company just sealed a new $6 million dollar deal to give them more power in helping struggling businesses grow in the Philippines.
Acudeen's Fintech Financing Deal
The above financing deal for Acudeen comes from Rizal Microbank, a Philippine banking corporation. These funds create a symbiotic process since both the banks and Acudeen want more financial inclusion for small and medium Filipino businesses.
Fetalino says that the financing is going to help his company finance all the invoices and receivables in their business network.
Acudeen's overall business goal for businesses is to finance their receivables ahead of time to create faster transactions.
Winning investment money gives an added push to Acudeen, but how exactly does their platform work? Their business model comes from Magellen's compelling background.
Backstory on the Company's Founder
We're proud to say Magellan's company is a graduate of our Manila-based Founder Institute. His background was already ready-made to take on the challenges that Acudeen provides. As Forbes noted in a profile earlier this year, Magellan (full name: Mario Jordan Fetalino III) initially ran a small health publication business in the Philippines.
Running this business showed Magellan just how shaky the business climate was in his home country. They and other businesses could barely keep their lights on, despite many incoming projects. Unpaid collectibles had become a business issue no one could seem to solve.
This is what led to Magellen starting Acudeen in early 2016. He found out 99% of businesses in the Philippines suffered from delayed receivables, giving him a strong incentive to progress his idea.
How Acudeen's Process Works
Those who use Acudeen's service are going to find it an easy process to use. You simply create an account, upload your invoices, and then receive cash. The transparency is also worth noting, especially with a portal allowing you to check the status of your receivables, plus instant transfers of cash to your account.
You can choose whether to sell your invoices or buy another business's invoices. When you sell your invoices, Acudeen promises to get cash to you within days. It's possible to connect to direct invoice sellers as well so you can buy in as a profitable path for your investments.
Both procedures are easy to do in just five steps, making it instantly attractive to any small business in the world.
Awards and the Future of Acudeen
Recognition for the company has become noteworthy over the last year. Back in April, they became a Seedstars World Global Winner, gaining them a $500,000 investment prize. They beat out companies from 65 other countries, giving them considerable momentum going into 2018.
They also won our Best Fintech 2017 award here at Founder Institute.
Most importantly, they're making a mark in the Philippines and Asia with their investment money propelling new ideas.
As Magellen said in the Forbes interview above:
We hope to become a massive agent to provide access to financing for micro-businesses in the future.
They also plan to team up with private business organizations, the government, and the International Finance Corporation in the Philippines to educate small businesses on financial inclusion. This education would target various cities there, including throughout Manila.
Keep reading us at Founder Institute as we profile how many of our startup graduates continue to evolve with new success stories.