To be able to grow as a company often requires significant capital, particularly in project-based businesses where purchasing costs must be paid long before the customer makes their payment. The gap between expenditure and revenue becomes a bottleneck for growth, which is precisely the type of challenge that Biocompost was facing.
– We had not tested any other supplier of similar services before and had nothing to compare with. We had no hesitations about trying the service, says Thomas Storsjö, CEO of Biocompost.
What ultimately tipped the scales for Invoier was a combination of good terms and easy onboarding – two factors that often carry a lot of weight for companies that need to focus their resources on growth.
– We thought the agreement too favourable and the implementation quite straightforward, says Thomas Storsjö.
By selling their invoices, companies like Biocompost can bridge the gap that can arise between costs and revenue, instead of having to bear the full financing of their growth themselves.
– In some projects we have a skewed distribution in the cash flow setup, but initial purchasing costs come before we have been paid by the customer. By selling the invoices, we can bridge this gap, says Thomas Storsjö.
”It has worked well and we are satisfied”
Before Invoier, reality looked different.
Without the ability to sell invoices, Biocompost had to wait out customer payment terms, which tied up capital that could otherwise have been used to drive the business forward.
– We then always awaited the customer's payment with a 30-day delay, says Thomas Storsjö.
Since the transition, Invoier's platform has become part of Biocompost's daily routine rather than an extra task to wrestle with.
– It has worked well and we are pleased, says Thomas Storsjö.
Through the possibility of selling invoices, and thereby releasing capital quickly, growing companies like Biocompost can spend less time financing their own growth and more time driving it. Moving forward, this need is expected for Biocompost to increase rather than decrease.
– We hope for increased invoicing in the future and consequently also an increased need to use the service, says Thomas Storsjö.
