The problem: Solving risk and cashflow issues to keep automation deals moving

European manufacturing is experiencing some headwinds. From the ongoing effects of the war in Ukraine to a drop-off in consumer demand, production has slowed and orders are down. Against this backdrop, the following becomes a priority for marketplaces such as Automa.net:

• As an intermediary, Automa.net wants to keep orders, payments, and shipments flowing. To do so, it must address two key issues: cashflow and risk.

• To ensure a consistent service for buyers and sellers and a consistent revenue stream for itself, Automa.net needs to capture and process as many transactions as possible within its platform.

• Efficiency and cost-savings are paramount if Automa.net is to maintain sustainable growth.

“Everyone is feeling the squeeze,” said Automa.net CEO, Marcin Krzączkowski. “Cash flow is critical at every part of the supply chain and we have to find ways to keep things moving.”

Net-term payments is already supported on Automa.net’s platform. But one party would still have to shoulder the risk and it didn’t solve the cashflow issues for everyone. 

“We heard from our customers that it would be nice to have additional cash flow,” Marcin explained. “Many were already using some solutions provided by banks and factoring agencies. So we said: ‘Okay, what if we made it very quick and cheaper and embedded into our platform, would that be useful?’ And of course, many said yes.”

The solution: Deferred payments with embedded financing

Automa.net needed a new payment solution that could address the risk and cashflow needs of its buyers and sellers from within the platform. So it went in search of a B2B deferred payment solution with financing built in and came across Tilta.

Tilta’s solution lets Automa.net embed net-term payments into its platform and, critically, absorbs the counterparty risk. Tilta’s team quickly provided mock-ups to demonstrate how the solution would look within the Automa.net platform, which made it easy for the development, sales, and marketing teams to get on board.

White-labeled solution lets Automa.net retain customer relationship

An important deciding factor was Tilta’s white-labeled solution. Branded payment methods can intercept the customer relationship, especially in the case of buy now pay later. Tilta sits with Automa.net’s branded payment offering Auto-pay allowing Automa.net to retain full control over its relationship with its members.

Trust between marketplaces and its members is hard-earned and extremely valuable to both parties. A white-labeled solution lets Automa.net leverage this trust to drive the adoption its new payment offering.

“We already have the trust of our members. They know we deliver. By embedding this additional payment option into our Automa-pay offering, we can capitalize on this trust still further,” Marcin said.

Flexible payment terms keep orders flowing

Different businesses relationships carry different levels of trust. For example, an early partnership between two parties will want more guarantees than that between two parties who’ve been trading for years. With Tilta, Automa.net’s members can set their own payment terms for each sale, choosing 100% coverage for the first few deals for extra security.

“Tilta’s flexible payment terms have been extremely valuable for capturing more transactions and making more connections between members,” said Marcin. “Releasing cash back into the pipeline and eliminating counterparty risk makes the purchase decision much easier.”

Smarter underwriting lets Automa.net extend more credit

Traditional underwriting can be time-consuming and often unfair. It typically requires lots of form-filling and decisions are based on an incomplete snapshot of the applicant’s finances or credit rating. Factors such seasonal order fluctuations or recent investments are not taken into account.

Since Tilta’s solution is embedded into Automa.net’s platform, can use the marketplace’s member data on to make more informed credit decisions. As a result, Automa.net can confidently extend credit proactively to its members, which further stimulates the flow of orders.

Flexible fee configuration based on member data

Tilta gives Automa.net total freedom on how it configures its fees, how it splits its processing costs, and where it makes its margin. Again this decision is be based on its member data. For example, a member who’s been on the platform for a long time, with a good trading history and excellent reviews, could be offered more favorable pricing than a new, unknown trader. 

“Tilta’s approach to fees is unique,” Marcin said. “Normally, there’s standard pricing with some basic underwriting, but Tilta’s data-driven approach gives us more control over how we make money from each transaction.”

Specialist knowledge and proactive support

Since partnering with Tilta, Marcin has been impressed by the team’s dedication. From those initial mock-ups to a willingness to attend relevant conferences, Tilta has demonstrated a commitment to understanding Automa.net’s needs and the industry as a whole. This highly specialized approach ensures Automa.net benefits from a solution and support that exactly meets its needs, as Marcin explained:

“Tilta is super responsive. They are often the ones that are chasing us, which makes a nice change. They are also very open to learning more about the industry. This makes a big difference because it puts them in a position to make more informed recommendations for implementing their solution. They understand what motivates our buyers and, because of that, we can build a better product.”

Unlocking more transactions with better cashflow

During tough economic times when cash flow is limited, business financing is the key to keeping things moving. With Tilta, Automa.net’s doesn’t just unlock more cash flow for its members. Thanks to its smart underwriting, they can also see at a glance what credit they have to spend. And, behind the scenes, Automa.net can set its own payment terms and ultimately turn the payments solution into a revenue driver for the business.

“We want to make transactions easier and Tilta is a big part of this. All payment providers process transactions but Tilta does more. It’s not just a payment solution, it’s a cashflow solution as well. This is a huge value-add for us and our members,” Marcin concluded.