Axxion, acting on behalf of funds under its management, has announced that they have exceeded the 5% threshold of Sidetrade’s capital, now holding 5.19% of the capital.
Axxion has been a Sidetrade shareholder since 2015, and is advised by HC Capital on some of its Sidetrade shareholder funds. Jeremie Couix, co-founder of HC Capital Advisors, had this to say:
We are convinced that Sidetrade has a unique positioning. Its offers have a very short payback for its customers. In addition, Sidetrade has the highest recurrence rate of all software companies listed in France, and offers significant leverage on the forward margin. Olivier Novasque, its CEO, has a very ambitious project and we are perfectly aligned with the investments and growth strategy.”
Sidetrade and their AI assistant Aimie accelerate revenue and cash flow generation across all business lines.
Olivier Novasque, Founder and CEO of Sidetrade, commented:
I wish to thank Axxion and HC Capital for their trust. The Covid-19 crisis is accelerating SaaS investment and Artificial Intelligence to improve all business processes. The explosion of late payments is drawing the attention of CFOs to the use of the latest technologies to secure and accelerate cash flow generation. As a cloud and AI solutions pioneer, Sidetrade has a considerable lead in this area and is ideally positioned to create value in this new paradigm.”
Cash flow remains a key issue with payments and late payment activity having a large effect on individual businesses and entire sectors, with some businesses cutting back on payments to suppliers until the crisis has passed. This will be a huge issue not just in the near term, but also in the long term. As without shoring up the delivery of cash across the economy many more businesses may fail, and this could constrain competition and growth as the economy recovers.
To create a healthier business environment that is more resilient will mean businesses taking a more partner centered approach to their suppliers rather than a transactional one, with a changed view of risk. One where risk is seen as a whole supply chain issue rather than just a risk to a single business in isolation. Businesses will therefore need to act accordingly, supporting their partners to in turn support themselves.
Digital tech has not only helped us adapt, but opened our eyes to new ways of collaboration.
Many more UK businesses will be using cloud computing and digital solutions in order to continue operating during the crisis. This impetus for digital adoption must not be lost during the recovery and we need to ensure that the new normal means being more willing to leverage the benefits of these technologies.
Sidetrade, a provider of artificial intelligence-driven software for companies to accelerate their receivables, has a tracker for overdue payments from other businesses. It draws on a data lake of 26 million invoices, in aggregate worth €54 billion, submitted between 3.7 million businesses across six European countries: France, UK, Spain, Italy, Belgium and the Netherlands.
Many companies don’t seem to realize that technology exists to automate credit management processes. In the UK, maybe 5% to 6% of corporate businesses have that kind of technology. In the Netherlands, it’s closer to 70% to 75% of companies – Rob Harvey, Sidetrade
The invoice tracker might be an eye opener. Sidetrade is doing more work on it. It has sector breakdowns for the UK, showing the highest rates of unpaid invoices being in finance, insurance and real estate (76% being over 10 days overdue); information communications and technology (60%); and leisure and hospitality (55%).
Note that finance, insurance, real estate, as well as ICT are areas where late payment rate [in the UK] was already high prior to the pandemic: 56% and 53%, respectively,” said Sidetrade, which also tracks unpaid invoices in France, Spain, Italy, Belgium, and the Netherlands
38% unpaid invoices as of May 25, 2020, the UK has seen a slight improvement in customer-supplier relations. This is the first positive effect of lockdown exit.
In the ICT (information, communication, technology) world, 60% of invoices are over 10 days overdue, while the same is true for 55% of invoices in leisure and hospitality.
The Sidetrade tracker analyses twelve business sectors and, as of 25 May, the UK sectors hardest hit by payment delays tied to the crisis are:
- Finance, insurance, and real estate, where 76% of invoices are over 10 days overdue.
- Information, communication, and technology (ICT), where 60% of invoices are over 10 days overdue.
- Leisure and hospitality, where 55% of invoices are over 10 days overdue.
Finance, insurance, real estate, and ICT were areas where late payment rate was already high prior to the pandemic, at 56% and 53% respectively.
Evidence from the Sidetrade tracker shows a strong correlation between payment behaviour and economic activity. The latest tracker release is the first to see the effect of exit from lockdown. With 38% unpaid invoices as of 25 May 2020, the UK has seen a slight improvement in customer-supplier relations.
This is the first positive effect of lockdown exit. Nonetheless, the unpaid rate remains extremely high, representing a threat for many businesses. Late payment deterioration in the UK rose more than 26%.
In its latest report on the state of late payments, Sidetrade found that as of May 25, the finance, insurance and real estate sector has been hardest hit by overdue B2B invoices, with at least 76 percent of invoices more than 10 days past-due.
Meanwhile, the information, communication and technology (ICT) sector sees 60 percent of its invoices overdue, and leisure and hospitality has 55 percent of invoices over 10 days past-due. Despite the troubling findings, Sidetrade noted that across all six nations analyzed, there has been a significant improvement in invoice payment habits — though it warned that late payments remain high across the board.
Key Stats
67 percent of businesses expect revenue declines as a result of the pandemic
One in four U.K. small and medium-sized businesses (SMBs) doubt they’ll survive to 2021
40 percent of small businesses in the U.K. now have more than $12,670 stuck in B2B receivables as they wait for their invoices to be settled
IBM had been paying 55 percent of its invoices in 60 days or less; it now pays 90 percent of bills within that timeframe