Fintech, which stands for financial technology, is a rapidly growing industry that uses technology to improve and automate financial services. It encompasses a wide range of businesses, from payment processing to digital financing, blockchain, and machine learning.
At iPay88, we believe that fintech is a powerful tool to help your business grow. Therefore, we have created solutions that help automate and simplify business payment collection. Simplification leads to more free time to run your business and make money.
One reason why fintech is such a powerful tool in the future of business is that it offers significant benefits over traditional financial services. Technology is rapidly changing and improving business operations. Finance is one of the fields that has advanced tremendously as a result of modern technological advancements. Let’s explore the benefits of fintech to business.
3 growth strategies to grow your business
Three things that can dramatically grow your business:
- Automation can streamline your financial processes, reduce the risks of errors, and save time and money.
- Cloud-based solutions offer a range of benefits, including increased flexibility, scalability, and accessibility.
- By exploring digital financing options, businesses can access capital more efficiently and at lower costs.
In this blog post, we want to share how two solutions – Digital Invoicing and Invoice Financing – can help you accelerate your business growth.
Introducing Digital Invoicing and Invoice Financing
iPay88 has been introducing various beyond-payment solutions that are now available to our merchants. Today, we’d like to share more about digital invoicing and invoice financing – something that we believe our merchants will benefit from.
It goes without saying that digital invoicing and invoice financing are two essential tools in the fintech space and that they are transforming how businesses manage their finances.
Digital invoicing is the process of creating, sending, and receiving invoices electronically. On top of that, iPay88 merchants can also embed a payment link in their invoices, simplifying how the payments are made.
Imagine if your customers could pay by clicking on the link displayed in their digital invoice. They would then be prompted to a payment page where they could choose their preferred payment method to pay.
The payment would be captured immediately, and you could prepare to ship the goods without waiting for the payment confirmations from your client or your bank. Digital invoicing can boost your customer experience and add to your productivity.
Invoice financing, on the other hand, is a way for businesses to get cash based on outstanding invoices. This allows businesses to get paid quickly rather than wait for their customers to pay their invoices.
Invoice financing is particularly useful for small businesses that may not have access to traditional financing options. It is also often a cheaper option than a business loan from a bank.
Digital invoicing and invoice financing can work hand in hand to provide businesses with a streamlined and efficient invoicing and payment process. With digital invoicing, businesses can create and send invoices quickly and easily. And with invoice financing, businesses can get paid quickly, even if their customers take a long time to pay.
As fintech continues to evolve, we can expect these tools to become even more important for businesses of all sizes.
Malaysia is moving towards e-invoicing
In Malaysia, e-invoicing and digital invoicing are often used interchangeably, but there are subtle differences between the two.
E-invoicing refers to the process of generating, sending, and receiving invoices electronically, using a standard format that can be read and processed by both the sender’s and receiver’s accounting systems. This process is usually automated and integrates with the sender’s and receiver’s financial systems, reducing errors and manual processing.
On the other hand, digital invoicing refers to the process of creating invoices using digital tools like software, spreadsheets, or templates, but they are not necessarily sent or received electronically. Digital invoices may be printed or sent via email or other digital means, but they are not necessarily integrated with the sender’s or receiver’s financial systems.
The early adoption of e-invoicing should start in 2023. With this change, businesses should get ready to issue e-invoices since the government is moving towards digitalising the economy in tandem with the fast-moving digitalised business world.
How Fintech Can Help Transform Your Business Finance
Technology has the potential to revolutionize how businesses manage their finances, leading to increased efficiency, accuracy, and productivity. Here are some ways technology can help transform your business finance:
- Automation: Technology can automate routine financial tasks such as bookkeeping, invoicing, and payment processing. This reduces the workload for your finance team and minimizes the risk of errors.
- Data analysis: With the help of technology, businesses can collect and analyze financial data in real time. This enables you to make informed decisions based on accurate and up-to-date information.
- Cloud-based systems: Cloud-based accounting software allows businesses to access financial data from anywhere, anytime. It also allows the easy creation of invoices and can facilitate seamless payment collections.
- Payment gateways: Payment gateways such as iPay88 enable businesses to accept payments online, increasing the speed, safety, and convenience of transactions.
- Digital services: With the growing demand for digitalization, digital services, such as applications for loans, invoice financing, and more, will become more and more common.
We have recently had a webinar with our partners from SQL Accounting Software and Funding Societies, where we discussed how fintech helps business growth. Our partners have shared some insights that business owners should leverage for continuous growth.
SQL Account Software is the leading accounting software provider in Malaysia, used by more than 210,000 companies nationwide. While Funding Societies is Southeast Asia’s largest P2P financing platform, with a presence in Malaysia, Singapore, Thailand, and Vietnam.
If you missed the webinar, we invite you to watch its recording.
So, what are the main takeaways from the webinar?
- Every business, no matter the industry or size, will need an accounting system as they’ll need money to come in and out.
- As a government strategy, Malaysia is expected to start using e-invoices, which are an international standard for invoicing, in 2023. This will allow easier business operations, transparency, and full digitalization of business transactions.
- Integrating the payment button into your invoice adds more convenience to your customers as the payment can be made with ease.
- Fintech players, such as Funding Societies, allowing smaller businesses to scale faster as they are keen to provide funding opportunities to them. Something that’s often troublesome via traditional banks.
- Businesses should leverage invoice financing solutions to maximize their sales and profits during periods of high sales (not only festivals like Christmas, CNY, and Hari Raya but also 11.11 and 12.12 sales). They can borrow money for short periods and at low-interest rates.
If you wish to find out more about these solutions, please contact your iPay88 Account Manager (if you are an existing merchant). For non-iPay88 merchants, please contact us to find out more.