Software Scoop: fundpnb

In this series, we review and share accounting, HR, and other software that we think would be of interest to our clients and colleagues. Check it out! You might just learn about a great new tool for your business.

fundpnbThis month we’re spreading the word about fundpnb, a new app-based product allowing business owners to get short-term cash flow based on their invoices, similar to factoring, but much easier, with less weight on a business owner’s personal finances. We were fortunate to get a demo of the product from fundpnb’s founder & CEO, Satish Palvai, who told us more about the product and the ways it can help businesses succeed.

Tell us why you decided to start fundpnb.

In my previous ventures as a small business owner using a variety of products and services, I found the cycle of receiving payment from my customers and then paying my own bills left me with uneven cash flow. I decided to talk to business owners from a variety of industries to determine if this was a common problem for other small and start-up businesses and found that, typically, the answer was yes. One problem businesses cited was that it often took too long for their customers to pay them. Net 30 terms regularly turned into net 45 or 50 days. At the same time, these start-ups and small businesses were reluctant to ask clients to pay sooner for fear of pressuring customers and/or changing the dynamic of the business relationship.

Because of these late payments from customers, cash needed for day-to-day operations and growth wasn’t always on hand. Many had already tapped into credit limits with banks, and getting additional funds from banks was either not an option or too timely a process, taking anywhere from 8-16 weeks of meetings, paperwork, and an owner’s time before they received this much-needed money. Some business owners would tap into their own personal finances to support their businesses, which is also not an ideal situation. I thought there should be a better way to solve this problem.

I decided to start fundpnb to offer start-ups and small businesses access to cost-effective funds to fill cash flow gaps. Financing is a long and tedious process, with many hours of paperwork and detailed personal information required. We launched fundpnb to reinvent invoice financing and to provide a better experience for micro and small business owners.

So how does fundpnb work?

Users just sign up through our app and connect their business accounting software (e.g., QuickBooks) to take an advance on outstanding invoices. Our technology evaluates key data points about the business and advises on if the business can be funded. If so, we automatically initiate a credit to your linked bank account. The fee is a fixed fee of 2% of the advanced amount every 30 days, with automatic repayments every 30 days for up to 90 days.

If, for example, a business was to request an advance on invoices totaling $3,000, and they paid it off in equal amounts every 30 days, the schedule and fees would look like this:

Advance amount: $3000.00

Principal + Fees Total Payment On
$1000.00 + $60.00 $1060.00 31st day
$1000.00 + $60.00 $1060.00 61st day
$1000.00 + $60.00 $1060.00 91st day

 

Businesses can choose to repay the amount borrowed whenever they want, and fees would then be adjusted to reflect the 2% fee according to the number of days the borrowed amount was outstanding. There are no loan origination fees, no underwriting fees, no prepayment penalty, and no hidden fees.

When companies sign up, we only look at business information; we don’t ask for personal information. The process—including fund deposits and notifications—is entirely electronic. There are no manual interventions at any point.

 What has response been like so far, and what kinds of clients do you work with?

Response has been wonderful. We’ve purposely worked with customers from a variety of industries, including high-tech IT, hospitality, and professional services. It’s given us a good understanding of how these businesses operate and ensured that our software is compatible.

We currently support a variety of businesses with varying levels of revenue, but our sweet spot are those businesses with a few million dollars in revenue. We can work with businesses that have less revenue or those that go up to tens of millions in revenue, but that few million-dollar range tends to be most common for us.

 

 

Visit Fine Point Consulting for more information about the great tools and services we use to help businesses succeed.

Software Scoop: ProRata

In this blog series, we review accounting, HR, and other software we use in our own office and/or on behalf of our clients. Check it out! You might just learn about a great new tool for your own business.

 

ProRata

Two things I always talk about when I chat with potential clients for Fine Point are 1) we are awesome at developing processes and workflow to best serve our customers and 2) we use cutting-edge software to help us deliver amazing accounting and CFO services.

One new-to-us software that we’ve just recently started using is ProRata, which provides automated deferred revenue recognition. It also integrates with Xero and QuickBooks, which is critical for streamlining with our current business and financial reporting processes.

In a nutshell, ProRata calculates and schedules revenue for SaaS and other subscription services, and reports on deferred revenue tracking. Revenue can be assigned by customer and revenue type, as well as parameters such as revenue start and end dates. It then enters those revenue numbers into QuickBooks, saving us hours of time.

Our assistant controller, Chelsea Stanton, has been using ProRata for one of our clients as a test run for the software and is already a fan. “Before I started using ProRata for this Fine Point client, I was using an Excel spreadsheet to track revenue. It was about 20 tabs long, and I had to update it manually based on monthly billing. I usually reserved about a day and half every month to enter revenue for all of my clients into Excel and QuickBooks, but I think using ProRata is going to save me many of these hours.”

ProRata also has a number of reporting features that we look forward to digging into, with easy-to-use graphs and charts that show things like monthly balances over time and how revenues are projected in the future. With its easily navigable, straightforward interface, ProRata is yet another cool tool we anticipate we’ll be using to deliver top-rate service to our clients for years to come.

 

 

Visit Fine Point Consulting for more information about the great tools and services we use to help businesses succeed.

Software Scoop: GoodHire

GoodHire

In this blog series, Fine Point Consulting reviews accounting, HR, and other software we use in our office or on behalf of our clients. Check it out! You might just learn about a great new tool for your own business.

GoodHire is an FCRA-compliant employment background-screening service that “takes the headache out of running background checks.” Basic criminal background checks can be purchased and run individually for $29.99 each, with options for add-ons and volume pricing available for larger companies.

I’ve used GoodHire for all of my hires here at Fine Point over the past few years. Because we deal with sensitive information on behalf of our clients, it’s really important to me to know that my employees check out. Just because a candidate gives a great interview doesn’t mean that he or she is a trustworthy individual. Background checks provide this peace of mind, and it’s certainly something I recommend to my clients and a service that we could provide for them.

What I like about the software is that it complies with federal Fair Credit Reporting Act laws, and requires the candidate’s consent to do the background check. I provide GoodHire with the candidate’s name, date of birth, social security number, and email, and then they contact that person directly. I don’t have to gather things like social security cards—GoodHire does all of that work for me. The turnaround is also very quick: within a day or two I have the final report.

I chose GoodHire over other options because at the time I was looking for a screening tool, it seemed like other services were still requiring that you send in a physical form, and they were more expensive. GoodHire is completely web-based and provides many add-ons beyond the basic background search, like education and employment verification, should our clients or we ever require them.

 

Visit Fine Point Consulting for more information about the great tools and services we use to help businesses succeed.

 

Software Scoop: Greenhouse

Greenhouse Logo

In this blog series, Fine Point Consulting reviews accounting, HR, and other software we use in our office or on behalf of our clients. Check it out! You might just learn about a great new tool for your own business.

Greenhouse is a recruiting optimization platform designed to make companies great at hiring. Their software helps your business find better candidates, conduct more focused interviews, and make data-driven hiring decisions. Fine Point Consulting’s Leah Roe was recently asked to interview a candidate for one of her clients using Greenhouse and has this to say about her experience:

“Greenhouse made it so easy to review and prep for an interview because all of the materials and everything you needed was right there: resume, cover letter, and even the job posting. Having the job posting and the qualities the company was looking for right in front of me helped give me direction for what kinds of questions to ask.

“The software also provided the interview schedule for each candidate, so I could see, for example, that the candidate had a “cultural fit” interview scheduled right after mine, so I knew I didn’t need to spend much time on assessing them on if they would be a good fit with the company. Instead, I could focus my attention on the candidate’s skill level and really keep my interview on track.

“The candidate scorecard function in Greenhouse is amazing. After the interview, the scorecard provides a format for giving structured, written feedback on a candidate, rather than simply a general impression. It really helps you think through why the candidate would or would not be a good fit with the company, and provides useful, data-based information for the hiring manager when it’s time to make a decision—all in one platform.

The bottom line: “I thought Greenhouse was great. The software was clean and organized, and it really streamlined the hiring process. I think it could be useful for companies of any size, particularly those that plan on making a number of hires and/or have multiple interviews scheduled for each candidate.”

Visit Fine Point Consulting for more information about the great tools and services we use to help businesses succeed.