Overview: InstantPay is Previse’s flagship programme that leverages the firm’s proprietary artificial intelligence (AI) algorithm. It is aimed at significantly reducing payment times.
The system’s decisions are based on data set of 2,000 corporates’ historical invoices. Machine learning (ML) algorithms predict which invoices will be approved and paid by the buyer so that invoices can be paid on day one , with suppliers being funded within 24 hours of the invoice being entered into the buyers’ system. Buyers pay on their normal terms.
The faster payment of invoices is protected by bespoke pre-approved invoice insurance, created by Previse and the Lloyd’s of London syndicate, Beat 4242.
The system is designed to be fully scalable and handles transactions across borders and in multiple currencies.
Clients: Large corporates and small and medium-sized enterprises (SMEs)
Active region(s): UK, Europe and US
Partners: Mastercard, Pagero
Employees: 30 across its locations in London and Glasgow, as well as a presence in Europe and the US
Funding: The company has secured multiple rounds of investment from venture capital funds in the UK and abroad, including Bessemer Venture Partners, Augmentum and Hambro Perks. In 2020, Previse received award funding through the BCR Innovation and Capability Fund. Part of this funding is being put towards further growing the Previse team.
Elevator pitch: “Previse uses data to pay suppliers instantly. Based on a data set of 2,000 corporates’ historical invoices, Previse’s machine learning algorithms predict which invoices will be approved and paid by the buyer. This allows invoices to be paid on day one , ending slow payment. Suppliers can get cash within 24 hours of the invoice being entered into the buyers’ system, while buyers pay on their normal terms meaning there is no adverse impact on their cash flow. It is a sustainable solution with a win-win for buyers and suppliers.”
Phone: +44 20 8124 4770
TMI View: Using AI to analyse and assess multiple data across businesses sets to automate supplier finance is a new take on an old proposal. With the benefit of bespoke pre-approved invoice insurance, this solution aims to take supplier finance to a new level.
Verdict: An insurance-backed AI approach to supplier finance changes the rules for the better.