The Green Sheet Online Edition
March 3, 2025 • 25:03:02
Automate invoice factoring, open new opportunities
Kapwork, a company dedicated to expanding access to working capital, launched Kapwork Verify, an automation solution designed to streamline invoice verification in factoring and alternative financing. While built primarily for factoring firms, Kapwork Verify offers significant opportunities for ISOs, merchant level salespeople (MLSs) and other payment professionals who work with businesses facing cash flow challenges.
Factoring—a financing method where businesses sell unpaid invoices for immediate cash—has existed for centuries but remains plagued by slow, manual processes. Factors must verify invoices before advancing funds, a time-consuming task that is prone to fraud and errors.
According to the company, Kapwork Verify automates this process, helping factors deploy capital faster while reducing costs by up to 20 percent. For payment professionals, Kapwork added, this opens doors to new potential revenue opportunities:
- Helping merchants close cash flow gaps: Businesses accepting virtual cards, ACH or check payments often issue invoices with 30 to 90 day payment terms, creating cash flow bottlenecks. By partnering with factoring firms using Kapwork Verify, ISOs and payment processors can offer merchants an alternative to merchant cash advances (MCAs).
- Enabling embedded finance solutions: Payment providers looking to expand into B2B working capital solutions can integrate Kapwork Verify with their invoice-to-cash workflows. Since it reportedly connects with 1,000+ vendor systems like Ariba and ISupplier, it ensures faster, more secure invoice verification—a key benefit for lenders funding working capital advances.
- Reducing fraud and strengthening compliance: Invoice factoring carries inherent fraud risks, just like payments. Kapwork Verify helps factors detect fraudulent invoices before funding, offering a security layer that can benefit processors, lenders and embedded finance providers.
"Traditional invoice factoring processes are slow, opaque, and expensive—and that's a problem for businesses in need of fast working capital," said Mauricio Vergara, CEO of Kapwork. "Kapwork Verify reduces risk and accelerates funding, allowing payment professionals to help their merchants turn invoices into immediate cash without relying on high-cost short-term loans."
Factoring firms, fintech lenders and ISOs can start using Kapwork Verify today, the company noted. The platform, Kapwork noted, offers a free tier with 600 verifications per month, making it easy to integrate. For more information, visit www.kapwork.com.
Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.
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