SME working capital provider TRIVER and procurement platform Elcom have announced a new service enabling small businesses supplying the public sector to receive instant payments.
This initiative comes ahead of the Procurement Act, set to be implemented in October, which aims to help SMEs secure a greater share of the £300bn annual public sector expenditure. The move is designed to help SMEs get paid faster, enabling them to tender for more public sector contracts.
TRIVER leverages Open Banking data and AI to fund UK small businesses’ short-term working capital needs, underwriting the risk of borrowing instantly and automatically. The service can provide advances on client invoices 24/7, offering quick access to capital. The process takes 20 minutes from initial application to funds appearing in a bank account, compared to the up to four weeks banks typically take.
Elcom, a UK-based software company, processes £15bn of supplier invoices for government departments, agencies, and public bodies annually. Its partnership with TRIVER will enable SME suppliers to the public sector to get paid immediately. This facility aims to improve cash flow for SMEs, allowing them to engage more with public sector contracts.
Jerome Le Luel, Founder & CEO 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. We have made it fast and simple, and this will help these businesses to flourish.”
William Lock, chairman at Elcom, said: “Working in partnership with TRIVER helps us solve one of our clients’ most common challenges. Public sector contracts can be transformative for many small businesses but delivering at scale can squeeze working capital. TRIVER is fast and easy to use and solves the funding gap. It’s a win-win. 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.”
TRIVER’s approach offers faster and more cost-effective access to short-term working capital than traditional banks. In its first year, it has funded more than £20m of invoices, supporting over 250 UK SMEs.
One small business using TRIVER’s service is Hertfordshire-based Cardans Heating, which advances all invoice payments above £1,000 to increase its cash flow instantly. This included a recent £30,000 invoice with a care home provider.
Director Dan Jordan said: “There are enough stressful things to think about when running a business. We use TRIVER because it takes away the stress of getting paid and paying the team. We have a two-week payment run for our engineers as well as significant monthly supplier costs for materials – but our customer invoices are typically paid after 30 days, sometimes more. TRIVER is straightforward and solves a challenge that’s always there. Now, I can see a customer invoice go out and know it can be paid immediately.”
TRIVER is designed to be embedded within digital service providers such as Elcom, which already serve SMEs. These providers benefit from automated processes that simplify providing a short-term working capital solution to their customers.
