Peak body for corporate treasurers signs first fintech partnership with Earlytrade

Ethical B2B marketplace fintech, Earlytrade, has become the first non-bank partner for one of Australia’s most prestigious closed event for CFOs and corporate treasurers. It has secured an exclusive four-year deal with the Finance & Treasury Association (FTA) making it the first-ever non-bank principal partner for the group’s prestigious annual event.

The closed event, which brings together senior finance executives and thought-leaders from over 300 of Australia’s top companies, has been historically run through partnerships with Australia’s big four banks.

Earlytrade Co-founder and CEO, Guy Saxelby said the agreement was a combination of good timing, opportunism and clear strategy.

“It represents the growing recognition and influence of fintechs in the corporate and finance sectors. More sectors and opportunities that were previously only available to major financial institutions are opening up to emerging players, as the credibility and size of the sector grows,” Mr Saxelby said.

FTA CEO Ben Leaver said events of 2020 – the pandemic, the subsequent lockdowns and the recession – had given impetus for corporate treasurers to explore new approaches to issues previously taken for granted.

“Earlytrade is the perfect representation of local tech-based innovation in B2B marketplaces and values-oriented decisions being made in the finance sector,” Mr Leaver said.

The Sydney-based, Earlytrade, was able to capitalise on the evolving digital and supply chain priorities from businesses during the pandemic, growing platform revenue of its ethical Supply Chain Finance and early payments marketplace by 767% (FY20).

In macro-economic policy terms, ethically-oriented early payments programs are tax-free stimulus that free-up cash for SMEs, stimulating jobs and investment in innovation.

The FTA partnership is an opportunity for Earlytrade to share its message of ethical payment practices with those that make pivotal decisions on how cash flows through the national economy.

Additional Earlytrade background:

Earlytrade’s model is based on unlocking the billions of dollars sitting in low return savings accounts of corporates holding into accounts payable cash until the eleventh hour of contracted payment terms.

Many suppliers have better use for this cash if they can get it faster at a small voluntary discount; in some cases to pay employees and pay bills, but just as importantly to invest in innovation or to take advantage of new tax incentives from the government.

If a supplier makes the independent decision that accounts receivable cash is more valuable today inclusive of a small discount, they can make that decision in the Earlytrade marketplace with complete confidence and confidentiality.

The Australian fintech’s model is unique compared to traditional products in that the market is supplier-driven and it seeks out new value rather than considering cash flow a zero-sum game where the largest dominate.

Earlytrade is currently backed by private venture capital and family offices including growth equity firm Shearwater meaning it has the autonomy and backing to grow sustainably without having to chase short-term outcomes to service liquidity events.

This has allowed Earlytrade’s ethical early payments marketplace to patiently absorb one sector supply chain after another including beer and liquor (87%), industrial waste management (80%) and supermarkets (50%), with several other major announcements in the pipeline.

Early 2020, Earlytrade found both roadblock and opportunity following a wave of negative press surrounding overseas Supply Chain Finance providers and big Australian corporates, which sparked an investigation and detailed report on the practice by Kate Carnell, the active and influential Small Business Ombudsman.

The final report from the Ombudsman outlined a standard for good use of SCF programs and positively cited case study submissions from Earlytrade and several of its clients, while it openly criticised specific overseas providers for targeting vulnerable suppliers.