PayPie’s QuickBooks Integration – What You Need to Know

PayPie QuickBooks Online Integration

They’re not media darlings or mythical unicorns, they’re the hard-working people giving everything they’ve got to make their businesses a success. In fact, 99% of all the businesses in the world are small businesses.

In spite of their diligent efforts, 60% of small to medium-sized enterprises (SMEs) that fail point to cash flow. There’s also lack of funding to bolster cash flow with 1 in 5 SMEs being turned down by banks and traditional lenders. What’s worse, is that many SMEs don’t know the reasons why or even how to improve their chances.

The power of a one-click risk assessment  

There’s no question that QuickBooks Online is a smarter business tool for the world’s hardest workers — small business owners. That’s why PayPie is excited to integrate with QuickBooks Online to offer these businesses powerful, intuitive, one-click risk assessment — based on a business’ own first-hand accounting data.

While expense tracking, payments and other day-to-day business functions can be easily automated, if an SME wants to know their business credit rating, they have to rely on an outdated system based on second-hand information. That is, until now.

With PayPie all you have to do is create a PayPie account, then connect your QuickBooks Online account. It’s that simple and your near-real-time credit score will be generated in seconds.

main dashboard

Hundreds of variables, one concise indicator

PayPie analyzes the financial data in the business’ QuickBooks Online account. Our application sorts the data into key variables and indicators, which are then further divided into two main categories — risk assessment and cash flow analysis.

The risk score, the focal point of the dashboard, is a capstone or synthesis of all the risk assessment variables. Like a car odometer, the risk score shows if the business is accelerating, resting at a comfortable cruising speed or losing momentum.

The table below breaks down some of the variables and indicators that PayPie uses to assess risk — factors that small business lenders often use their own assessments:

elements of risk assessmen

The added value of cash flow forecasting 

Risk assessment is to cash flow as a chicken is to an egg. You can’t have one without the other. Businesses need cash flow to survive. As such, they need to be aware of exactly how and when the cash flows in and out of their business. Cash flow forecasting also helps businesses predict when they’ll need funding — letting them plan and prepare to apply for these funds more effectively.

PayPie helps SMEs monitor cash flow by:

  • Detailing accounts receivable and payable exposures.
  • Comparing income to expenses.
  • Analyzing categories of expenses.
  • Projecting monthly cash flow.
  • Providing a daily cash position.

AR days overdue

Daily cash flow forecast

Learn 5 reasons why you should use PayPie for cash flow forecasting

Risk assessment that includes solutions

In developing their analytics dashboard, PayPie didn’t want to provide just a series of charts and graphs alone. They also wanted to offer solutions. This is why each assessment also includes a list of insights that show businesses which goals they’re achieving and where they’re reaching their goals and where they can improve.

Our insights that help SMEs improve their financial health and increase their chances of getting the funding they need include:

  • Evaluations of key liquidity ratios.
  • Comparisons to industry benchmarks.
  • Generation and investment of operating cash flow.
  • Debt and repayment indicators.
  • Return on capital employed.

risk assessment with insights

Financial tools for businesses, accountants and bookkeepers

Any business, accountant or bookkeeper using QuickBooks Online can use PayPie’s risk assessment and cash flow forecasting. We want to put these tools into the hands of the people who need them the most — whether it’s the businesses themselves or the financial professionals who consult and advise them.

Unless you’ve been stranded on a desert island or huddled in a safe room, you know that technology is set to transform accounting. This “Fourth Industrial Revolution” will also change the relationship between accountants, bookkeepers and businesses.

When all the basics are covered and simplified by automation, there’s more time to focus on conceptual and insight-based tasks, like cash flow consulting. The more businesses know about their current and future cash flow, the more able they are to make strategic, data-backed decisions.

Learn more about how cash flow consulting benefits businesses and accountants alike. 

Look better in front of lenders.
Improve your cash flow.
Grow your business.

“Every day, small businesses struggle with a lack of accurate and efficient ways to assess risk and accesss funding. We’re leveling the playing field so that SMEs can seize upon further opportunities for growth.”
Nick Chandi, PayPie CEO and Co-Founder

We invite you to try PayPie and we can’t wait to hear what you think

See more reviews and insights via FitSmallBusiness

In addition to our listing in the QuickBooks App Store, you can also learn more about PayPie in our listing within the 2018 Small Business Accounting Software Reviews & Pricing Guide.

QuickBooks, QuickBooks Online, QuickBooks Connect and the Small Business App Showdown are registered trademarks of Intuit Inc. 

The information in this article is not financial advice. It does not replace the expertise that comes from working with an accountant, bookkeeper or financial professional. 

Single Ledger — A Global System of Trust

Last month I had an opportunity to deliver a professional development session for CPAs at the Allinial Global Technology Fly-In, where I formally announced PayPie’s Single Ledger initiative, showcasing the proof of concept (POC) for distributed ledger technology to industry participants. Just like anyone else who has dealt with anything related to the blockchain in the last few years, I could feel the mix of excitement, curiosity and anxiety in the air.

There was a time when businesses used to have separate accounts receivable and payable systems, then came on-premise systems followed by cloud accounting and software as a service (SaaS). Now there’s blockchain and distributed ledger — the next step in the evolution of online accounting.

Present challenges — without distributed ledger technology

Currently, financial data is often housed inside different accounting platforms and enterprise resource planning (ERP) systems.

Online accounting (cloud accounting) is a revolution with millions of success stories and it has done a great job solving problems that have plagued the industry for years. Most of these systems allow for the creation of accounting transactions and nearly real-time financial statements. They also significantly accelerate the reconciliation process. The result is a wealth of valuable business data.

But, all this crucial information is often siloed and there’s no universal system for sharing it. All these systems look like an isolated collection of company intranets — islands of data that often fail to extend past the edge of the business.

Anytime a business has to deal with an external third party, the processes for transmission and verification of this data through APIs still require a lot of manual review and cross-checking. Dealing with a counterparty, even with the most diligent efforts, is time-consuming and prone to errors.

The issue of siloed information is a global challenge across the entire financial services industry. (Actually, almost every industry. But for this post, let’s stick to accounting.)

Next steps — breaking down barriers

The future of the accounting industry lies in collaboration. At PayPie, we’re heading up efforts to facilitate this innovation in the form of our Single Ledger initiative. We have developed a blockchain-enabled technology that will create a global system of trust to connect all these disconnected dots.

The future — distributed ledger technology and global digital IDs

One of the most revolutionary things about Single Ledger is that we are able to assign a unique blockchain-powered global ID to every business through their online accounting system participating in the network.

Through this ID process, all parties within the network are able to identify, validate and trust the information provided. This potential has never existed before and was not even possible before blockchain. Benefits from this global system of trust include:

  • Cryptographically created blockchain IDs that can connect any business in the world using an online accounting system.
  • This same cryptography makes data on the blockchain permanent and immutable. It cannot be changed, altered or modified.
  • Data entry, transactions/settlements will take place in near-real-time.
  • End-to-end transparency will eliminate the need for middlemen and costly, time-consuming third-party clearing houses and validation processes.

The mission of PayPie’s Single Ledger initiative is to connect businesses in order to further develop a trusted, self-validating ecosystem with the potential to radically change current business models.

Here’s a video example:

The heart of the evolution — collaboration

If you are an online accounting and/or financial data producer, a vendor using an online ERP partner with us to advance the potential of this technology.

As a participant in the ecosystem, you’ll ensure the authenticity and origin of the data that originates from your accounting platform. At the same time, your customers control who they would like to share data with, just like they do now.

Single Ledger ensures the integrity of the data and provides automated guaranteed delivery for all the transactions to the counterparty.

The more participants we engage, the sooner we’ll be able to usher in the next generation of online financial information and end “garbage-in, garbage-out” (GIGO) problem.

Current data import and extraction systems, including OCR, are clunky. Together, we can automatically and accurately code all transactions and do all the heavy lifting of bookkeeping — saving our customers (and ourselves) from endless hours of data entry.

In the same way that cloud computing has changed the way software is used and distributed, Single Ledger will transform how accounting data is authenticated at the origin, validated and shared.

Here is a proof of concept demo of the Single Ledger in action narrated by Single Ledger’s CEO, Nick Chandi:

Keeping facts while removing friction

“The methods behind blockchain accounting are so revolutionary that some believe it could end the 700-year reign of double-entry accounting.”
QuickBooks Canada Team

Who knows… with the adoption of Single Ledger, we may not even need invoices by 2028! When users assign permissions to their data from the accounting platform of their choice, they remain in the driver’s seat while controlling the usage of the shared data.

Rather than financial information being passed back and forth like a frantic game of ping pong, Single Ledger may change the game entirely. Through the evolution of Single Ledger, the ball may one day stay in one place, in their accounting system — where everyone can access it simultaneously, a dream come true for vendors, auditors, lenders, banks and tax authorities.

Together — we can make the next transformation happen

We’ve begun an industry-wide initiative to engage more thought leaders, build a multi-faceted data ecosystem and develop further use cases based on the blockchain economy. I foresee a vibrant and robust environment where information sharing is automated via smart contracts — created, owned and executed by business users.

  • Let’s take the heavy lifting out of accounts receivables and payables — creating win-win collaborations.
  • Let’s reduce the cost of doing business by letting stakeholders place greater trust in your customers.
  • Give businesses greater power and control over their financial data.

Join us today and enhance this system of trust — Single Ledger!

Stock images via Pexels.

Distributed ledger infographics via singleledger.org.

New Beta Sneak Peek: Cash Flow Forecasting

PayPie Beta Sneak Peek Binoculars

PayPie is extremely excited to announce that we’ll be releasing a substantial update to our beta in the coming weeks. One of the main focal points of the update is our beautiful and cutting-edge cash flow forecasting tool.

Sneak peek: Spectacular cash flow forecasting

Cash flow is the lifeblood of any small to medium-sized enterprise (SME). At PayPie, we want to give these businesses the tools they need to thrive. Our cash flow forecasting fulfills this promise brilliantly.

It gives business owners and/or the financial professional advising them a better way to visualize the financial indicators affecting the company’s cash flow. (Our proprietary risk score contained within the cash flow forecast is an extension of these metrics.)

In the long-term, the cash flow forecasting and risk score will be tied to our business financing capabilities. However, for the moment we’re focusing on the overall significance of cash flow forecasting in terms of best practices for business financial health and value-added services for the financial professionals serving these businesses.

PayPie Cash Flow Forecast Example

How SMEs can use cash flow forecasting

Through our QuickBooks Online integration, all that small to medium-sized businesses (SMEs) or the professionals representing them have to do to use the cash flow forecasting tool is sign up for PayPie and connect the company’s QBO account.* No tedious data or customization entry required.

Better yet, the cash flow forecasting tool is free! Businesses may also use it as often as they’d like to turn basic financial data into highly visual and informative reports.

Side note: We plan to begin formally reaching out to a range of QBO audiences this summer.

See the recently refreshed the PayPie website. 

Why data visualization matters

Have you ever tried to draw conclusions from simply reading spreadsheet or string of numbers? It can be done, but it’s not always the easiest or most intuitive way to go about it. The indicators, charts and graphs in our cash flow forecast bring this information to life — making it even more valuable for “connecting the dots.”

A company’s quick ratio, cash flow ratio, current ratio and debt-to-equity ratio are at the top, with the risk score taking center stage. A cash flow graph quickly shows the relationship between the money flowing in and out of the business. Plus, useful tabs let users drill down even further into receivables, payables and other areas.

Learn more about reading a cash flow statement, how cash flow forecasting works and basic cash flow concepts.

The benefits of cash flow forecasting

A cash flow forecast shows how money flows in and out of a business over a specific period of time by:

  • Comparing the overall flow of cash into the company against the flow of cash out of the company.
  • Identifying the times when the cash reserves are at their highest and lowest.
  • Pinpointing opportunities, like which invoices are overdue in terms of cash value and days past due date.

If a business has a lot of historical data in their QBO account, our algorithm uses this information to create a forecast. For new businesses (or businesses that have just started using accounting software), the insights from their forecasts will grow as their data grows. For all businesses, cash flow forecasting offers the information needed for strategic, data-backed decisions.

An opportunity for financial pros 

“Every annual financial cycle is an opportunity to sit down and set goals and project numbers forward with your significant clients. Looking forward is not only important, but often essential to identify and avoid any looming business issues or, more positively, for identifying new opportunities too.” — Richard Francis, Spotlight Reporting Founder, AccountingWeb

As artificial intelligence eliminates data entry, there’s more time for value-added services, such as cash flow forecasting. This also opens the doors to scenario planning, debt reviews and other related services.

Build long-term relationships with PayPie

We recognize the critical role that accountants and bookkeepers play as advocates to their SME clients. This is why PayPie is developing a suite of tools for start-to-finish cash flow forecasting and management. We’ve started with the cash flow forecasting tool, which includes risk scoring.

Once we bring our invoice factoring services online in the near future, we’ll be able to help financial professionals identify and solve cash flow problems — all in one platform.

In order to deepen our relationships with financial professionals, we’re also committed to creating strong partnership programs.

Accountants and bookkeepers can get started the same way an SME would, all you have to do is sign up.

*PayPie currently integrates with QuickBooks Online. Additional integrations are coming soon. 

This article is for informational purposes only. To receive monthly email updates, click on “Get Newsletter” in the upper right-hand corner of the blog page.  

Image via Pexels.

For a Sustainable Ecosystem

Now that Beta is successfully live, I wanted to share with token holders a few insights into PayPie’s operations. One of the most common questions that we receive is about how safe it will be to use PPP tokens on the platform for the invoice buying process. As most of you already know, our company’s foundation is directly based on the answer to the above question. PayPie was born with the goal of ensuring that one business could transact with another in a very safe and secure manner.

Our resources are primarily dedicated to solving this very real problem so that when we connect you as an invoice buyer with an invoice seller and you use your PPP tokens on the platform, you should be as confident as I am because PayPie will grow only if you are successful in operating your business.

The key value at the very core of PayPie is the credit risk assessment itself, meaning that reducing risk to near-zero levels will be PayPie’s main goal. Let us start the process with what one of the pillars we have on the platform, the Credit Hubs. We envisioned them so that we can comply with existing financial regulations as well as bring third parties to provide liquidity for the SMEs as the platform grows.

Initially set up by PayPie as affiliated corporations, Credit Hubs will operate as separate legal entities licensed to carry on their respective financing activities in the jurisdiction in which they operate. As adoption increases, PayPie expects to allow third-party unrelated entities to join the Ecosystem and operate as Credit Hubs.

On successful financing, PPP token holders who deposit their tokens will receive their PPP tokens as principal plus profit payable as additional PPP tokens for providing their tokens as financing capital, the Credit Hub will then receive a fee for facilitating and arranging the financing with SMEs and invoice customers. The KYC provider and PayPie will receive fees for the use of its financial and credit risk information and for the use of the PayPie Price Oracle. We expect the aggregated fee for all components to be around 1% of the invoice value per invoice factoring transaction.

In the coming weeks, you will see some major improvements on the platform as we build more features that not only help SMEs but also to invoice buyers. Traditionally, invoice factoring is considered one of the most secure kinds of service and we believe that with the accuracy and precision from PayPie’s holistic risk assessment, we will be able to keep default rates at minimal levels, likely less than 0.5% (not 5% as some mistakenly stated, 0.5%).

We have very well-experienced members from the factoring business onboarding our team and we are on the right track with our initial data modeling methods. As we build, learn, and improve, I am positive that you will not find any other company around that will consistently deliver again and again a utility like never seen before.

Protecting PPP holders from defaults is an absolute priority for us. There is no real substitute for a stringent due diligence process. A thorough KYC process on SMEs will be in place for the maximum protection of invoice buyers. SMEs will have to co-sign alongside with AR Customers to minimize the defaults.

There are standard financial processes that allow us to take steps to aid debt recovery. In fact, there are debt collection mechanisms that are well established in the offline financial industry elements and even then do not have access to the critical data that you will have.

Despite being often helpful, sometimes side discussions can deviate our focus from our core mission. Let’s make sure that doesn’t happen. Comparing PayPie’s value propositions with others’ is like comparing apples and oranges. In some business models, you must have insurance in 100% of the cases because there is nothing creating real value for operations. The value and benefits that we provide are something that others simply don’t have. Other companies don’t know how SMEs’ bank histories look like, how many times the AR Customer was late in making previous payments, or if AR Customers were making the payments at all.

These are just the tip of the iceberg of a multitude of other data that’s primary to PayPie. Based on the data, we will be able to foresee challenges that you may face way before an invoice is even listed on the platform. There is nothing stopping us to introduce insurance options at any time and our goal is to create a win-win situation for both you and the SMEs, and we want fewer intermediaries to make that happen, not more. We want more success rates, more profit in token holders’ wallets, not less.

 

 

A New Era Begins

We’ve come a long way since this all has started. Partnerships, team expansions, development, Alpha release, and even a brand new house – our revamped website. PayPie has been through a lot during all this time and, along with it, our beloved community composed by some of the most passionate and fearless supporters that any company can have has kept always moving forward no matter what. Steadily. Strongly. Imperatively.

Now, at the dawn of a new era for the blockchain fintech scene, emerges a giant. Beta. Beautiful. Bombastic. A landmark in the history of the entire crypto world regardless of nation, community, or industry. A giant born with the greatness of a ground-breaking Intuit partnership to forever change the blockchain landscape.

Welcome to PayPie Beta. PayPie has partnered with the fintech powerhouse Intuit to deliver a QuickBooks Online integration straight at Beta launch. PayPie will now have instant access to millions of QuickBooks Online business users as potential customers since the very beginning. QuickBooks is one of the largest business accounting software in North America having over 80% of market share in the USA. Its online version accounts for a considerable piece of that and follows the latest industry cloud trend.

Small and medium-sized enterprises will be able to instantly connect their QBO accounts to PayPie to have access to their unique PayPie credit score and analytics insights to improve their business’ finances. SMEs’ real financial data histories will be assessed in near-real time by our automated credit risk assessment algorithm and their credit scores will be hashed to the Ethereum blockchain for ultimate transparency.

PayPie’s initial credit assessment and financial analytics insights are live now and available to all small SMEs using QBO as their primary accounting solution in the USA, Canada, UK, and Australia. Once businesses are all set on the platform, they will be able to sell their invoices in the marketplace to have access to fast and affordable funding from global invoice buyers. Our beta platform is live to be experienced with test tokens and improved functionalities will be introduced in stages, including turning the switch to real token usage.

PayPie’s legal team remains closely working with our local authorities to solve any outstanding aspects of the platform and we are willing to take the necessary steps and abide by required regulations safeguarding for the long-term best interests of the company and of our token holders’ community. Our bright future awaits and it will always be built on solid and responsible foundations.

The horizon is coming and it belongs to PayPie. Our marketing outreach starts this week and a comprehensive approach will come to place. Beta is a nice and shiny platform still in very early stages and there are plenty of more developments to come. In last few months, many amazing talents have joined our ranks including a former Goldman Sachs executive with expertise in credit risk assessment with specific expertise background in the invoice factoring industry. We are serious about disrupting the ways that businesses improve their finances and we are going big at it.

Enjoy Beta! We are just getting started!

 

 

 

 

Alpha Is Coming!

Alpha Is Coming!

Oh yeah! Oh 2018… Such a young year and already bringing so much joy to our hearts. Yes my friends, our delightful alpha version is coming on the early side of our hopes! Our team is always putting our hearts and souls into the development of this platform that I guess things are conspiring in our favor because our alpha is already looking hot and steamy!

I myself have been diving deep into the UI and UX waters to help our developers bring not only a world-class technical platform for you, but a platform that looks and feels great, a platform that you just can’t get your hands out of. Of course, this is still an alpha version and alphas are well known for being far from perfect, but we are very happy with the overall performance of it and I’m sure you will be too! So without further ado:

THE PAYPIE ALPHA WILL BE OFFICIALLY LAUNCHED ON JANUARY 31!

Our alpha version will solely focus on the credit risk assessment side of the platform. That part should be first polished so we can then move on to deeper waters knowing that all data will be as accurate as we envision. This will be a great opportunity for the community to FLOOD us with feedback to help us take PayPie to the crypto Olympus!

And hey, we have another outstanding news for you! After getting hundreds and hundreds of emails from people interested in joining out alpha testing phase we decided to run a completely PUBLIC ALPHA testing open for all willing to join! Woo-hoo! Our beta testing phase will still be closed, but hey, everyone can just go nuts on alpha!

Speaking about beta, we will have plenty of juicy, and I mean, juicy info for you coming soon after alpha is released. Beta is already under development and things are moving at full speed. But first, let us all enjoy and test the $h!% out of alpha! One sweet slice of pie at a time!

And just a note on our website revamp: we will only update a couple of things during alpha and will save the massive shiny stuff for when beta comes. The website is being completely revamped and PayPie will have a new face very soon. Trust me, it will worth the wait!

So save the date, everybody! January 31, 2018! Alpha is coming!

One Small Step for PayPie, One Giant Leap for SMEs

The lack of transparency in business data keeps most financial advisors, lenders, and investors up at night. And if you are an SME selling on credit, you must be feeling credit stress on a fairly regular basis. The world today needs a solution that can look at financial data and offer tools to ward off fraud to propel businesses to the next level.

PayPie is disrupting the way business is being done. Our credit risk analysis along with blockchain-powered publicly visible Credit Risk Scores is going to help millions of SMEs change their financial expectations. In a relatively short period, our platform is introducing a product and that has been out of reach to SME’s worldwide.

The alpha version of our platform is officially being launched on January 31, 2018, and we couldn’t be happier about it. Our whole team has been putting the highest effort and care to develop this wonderful way for SMEs to improve their realities. This alpha version will be solely focused on the credit risk assessment side so you can have a good taste of what’s to come. Alphas are known for being far from perfect, but we are very happy with the way the platform is behaving so far and we hope you will be too.

PayPie will not only analyze accounting data and apply Artificial Intelligence (AI) analytics to see whether a business will succeed or default, but will also support an entire ecosystem. Accountants will be able to give their clients actionable financial insights, lenders will be able to reduce underwriting times and costs, an investor in South Africa will be able to provide credit to a business in the United States— all because of our cloud infrastructure powered by blockchain — opening new doors for endless possibilities that reinvigorate the economy.

I would love to live in a decentralized world, but today we still need to integrate with the pre-existing global economy. That being said, we have already built the core framework that will allow us to focus on USA\Canada first and to expand globally in a scalable way based on our success in these markets. We are starting with the credit risk assessment side of the platform and we will share other details on further services at the right time.

We at the PayPie are very confident and excited about our vision. I have never seen a community and team more inspired, dedicated and talented than the ones we are blessed in having. Collectively, we will bring peace of mind to both SMEs and thousands of our supporters who are waiting for us to change the world.

PayPie, you will like it hot!

 

 

Image: StoryBlocks

Improving Your Cash Flow in a Click

Do you remember the last time you tried to get some quick financing for your business? I bet it wasn’t the best of experiences, right? These procedures usually take forever and still give you a less than satisfactory answer in the end. Even when trying multiple sources at a time can be frustrating since they all can take forever to make a decision that should be decided in seconds instead of weeks.

Gladly, technology is bringing the ultimate solution for this recurring pain point. Starting early next year, things are going to change and a new opportunity will be created where you will be able to get instant financial approvals against your outstanding invoices. Using a simple process, you as a business connect your accounting data with PayPie and let the magic happen.

PayPie will analyze your relevant financial transactions and will assign the most accurate credit risk score for your business. This will enable you to radically change the performance of your business since your data will be automatically integrated and you won’t have to manually enter any data or invoice. The days of making mistakes and wasting time entering data in different platforms are over.

If you are one of the millions of businesses using online accounting software like QuickBooks Online, Sage, or Xero, you are in for an early treat. You will be among the first ones to harness technology to solve your cash flow problems.

We will integrate with all major accounting software so that we fit naturally into your workflow to become an app that you love and use on regular basis. PayPie will truly deliver end-to-end intuitive experience that is easy to use right from within your accounting software.

PPP token holders are creating efficiencies through technology and automation for you allowing you to focus 100% on your business so that you can take advantage of the countless business opportunities that unveil.

The liquidity provided can be used for further inventory purchase, equipment purchase, or just to hire a new employee to catapult your marketing efforts. We are here to help your business grow and ensure long-term success. With PayPie at the heart of your short-term liquidity needs, there is no better friend today.

Sign up for our short-list now and we’ll promptly inform you once we’re are ready to take live credit risk score of your business to the pool of worldwide lenders, first time ever powered by the blockchain: https://goo.gl/forms/sdDMx1ANQ532aN9I2

 

 

Image: GraphicStock

What’s So Special About PayPie Tokens?

Every now and then I get this question from new comers to the financial blockchain scene. They’ve just found PayPie and they’re not sure if they’ll go through our whitepaper to get the whole picture of the value behind PayPie tokens, so here’s a quick explanation on one of the main sides of becoming a token holder.

First of all, let me just state what PayPie is all about. PayPie brings ultimate trust and transparency to the financial markets by introducing the world’s first credit risk assessment based on blockchain accounting. The platform solves the problems of fraud and inconsistencies which exist in isolated accounting systems by allowing for real-time audit and analysis of financial statements on the blockchain. By looking at the risk score analytics, you will be able to make a sound judgement on what to expect from the companies that you are going to buy the invoice from.

Smart contracts on the blockchain are pretty new and have opened the door for this global opportunity. Anyone from anywhere can finance the invoices of businesses using international credit ratings on PayPie’s marketplace. When we presented the PayPie at the Accountex USA event early this month we could see that hundreds of minds were being blown away by the disruptive structure of the platform.

How big is the market opportunity?

Fire the bank

Though I can’t comment on the specifics, let me share some pertinent information on a few regional markets. In the USA and Canada, we get almost 0% return for any deposits in the bank. This is a screenshot of Bank of America’s website showing a pathetic 0.01% return over 12 months.

But if you, as a business, go to the same bank for credit, they would charge you anywhere between 6% to 14%. We will bring exactly this kind of business to PayPie so that you can help fund other businesses while being rewarded for your efforts, essentially replacing banks for that matter. Conventional invoice factoring companies in developed countries charge around 2.5-4% for a 30 day credit and sometimes the origination fee can make the entire process inviable.

But this situation can be even worse in many other parts of the world. In Brazil, for instance, the ongoing rate can be anywhere between 8% to 12% per month. Same can be said about India, Philippines and most of the countries worldwide. We will strive to become a platform of the choice for businesses from these countries because we will able to facilitate cheaper loans by connecting with token holders who have poor yield in their own countries. PayPie will handle KYC and regulatory issues and will ensure you finance businesses with empirical evidence of stellar financial health. I keep hearing from experts from all around the world that there is no better way to make informed decisions and to identify great investment opportunities. I completely agree.

Invoice financing is a 3 trillion market today and we believe that massive wealth will be created globally when smart contracts cut the middleman off the picture. The benefits will be shared by all, from big financial institutions to micro investors, from credit card companies to rating agencies, all will make better and smarter decisions based on live and truly accurate financial data for the very first time thanks to the power of blockchain and PayPie.

 

Join us on Telegram and stay in the loop! https://t.me/PayPieTokens

Credit Risk Assessment on Blockchain Accounting

risk assessment blockchain accounting

Hello, financial world! The PayPie team is excited to announce that we now have an official blog to share all news, press coverage, important dates, and all other relevant information nuggets about the platform that’s out there to tell. We’re thrilled with all the buzz that the PayPie vision is creating in the financial scene and we know that there’s plenty of more to come, so let us all be a part of this fintech revolution!

First, let me just clarify a very important topic that often comes on our social channels. I have been asked quite a few times since announcing our token crowdsale: Are you similar to Populous or similar to Xero? For those who don’t know, Populous is an invoice trading platform based in UK and Xero is an online accounting software provider.

I believe this question might arise from the first impression of our whitepaper when you see a marketplace for invoice trading or automated audit functionality built-in that we have for accounting professionals. So let me straightforward with this, though we have similar functionality — but we are very different from both above companies and our vision is much broader. The confusion arises from the fact that no one has seen something like PayPie yet in the fintech but things are going to change pretty soon. We are more similar to Experian or Equifax for businesses. We are more like Slack than Outlook that prefer to sit in a closed environment. Done. Subject clarified. So let’s move on to the really meaty part.

If you are a business owner, you know that world today does not need another accounting software but we do need something that can look at your financial data and do some magic to solve your real-life problems. As a co-founder of SlickPie, sometimes I read support emails and attend support phone calls so that I have firsthand experience the problems my customers are facing. During one of those calls, I had an opportunity to talk to one customer who was very stressed, nervous and concerned. She had a profit-making business, there was a payment of more than 10K coming soon and a bigger amount was being settled week after but she needed the money today. She tried to reach her bank but they requested more documents before they even consider her request.

She just wished that she can click on a button in SlickPie and because the system already knew that her customers are loyal and had been paying her for a long time, she should get the money in the bank so that she can do her payroll and carry on with her business. Unfortunately for her, there was no easy solution that time but it made me go through many sleepless nights.

I kept on thinking what can be done? We are so close to her business and there is no one who knows better about her business than us so how we can help her and millions of other small and medium-size businesses who have less than 500 employees. I talked to the team and we drilled down in the data to see if there are more businesses like that, and to my surprise, results were shocking. We see thousands of businesses were getting their payments as late as 60-120 days and there were struggling to stay float from month to month. The bigger was the invoice amount, longer was the time delay in getting the payment.

We brainstormed over many sessions on how best to help SMEs based on the data we have. During this time, I had an opportunity to attend a meet-up group in Seattle with a friend where an entrepreneur was trying to solve a problem using blockchain. This was a light bulb moment and we started working on a mission to bring the benefits of blockchain to the world of business financials.

The major problem is that even after having so many businesses on the cloud, there is still no easy way for lenders to access & trust financial data to provide the required liquidity to them. They still take business data from ERP software in PDFs or excel sheet and then someone enters it manually in the software. This is such a dull, slow and out-dated process and hard to believe that business is still done this way today in the 21st century.

If you are a business owner, this is all going to change starting with PayPie because we have all the information about your business that can help solve your liquidity problems. We know your customers, vendors and employees. We know how much your payroll is and which bank or service you use for salary payments. PayPie knows about your bank because you connected it for live bank feeds. How much debt you must pay this month and how much is your installment of the line of credit that you opened with your local bank? You may not know exact figures but your financial software does.

We are analyzing all the above information and many more data points to build an algorithm for a risk score for your business. You can take this information and go to your bank. But wait, why to go to a bank when you can have liquidity right inside PayPie, powered by Smart Contracts? Our token holders will look at your credit rating and can do the same thing that a bank does for you but in a way more seamless, easy and secure way.

Dealing with business financials might be the most boring thing for most people but this is the most rewarding income for banks contributing almost one-third of their global income. You as a business owner will not only get quick financing but also overall better rates than banks because there is no agreement fee costing you in thousands. Not only this, the more invoices you sell on the platform, the more accurate your risk score would be as it is continuously updated onto the immutable Ethereum blockchain. One day, you will be able to take this risk score and share with other blockchain applications to access their services anytime, anywhere in the world.

The other main beneficiaries of PayPie would be accounting professionals. They will benefit from the end of duplicate data entry, automated reconciliation and automatic audits. Many businesses spend anywhere from 5 hours to 20 hours per week just reconciling their accounting records. Single Ledger will put an end to this practice and cost reduction will be potentially enormous. Audits will become much more analytical, at least semi-automated, and even continuous, a dream come true for CPAs who charge $300-400/hours for a service like this.

There are many more ways PayPie will revolutionize the world of business financials and I will dive into them some other time. Hopefully, I made it clear what PayPie is all about. If not — reach out to us via Telegram or Email and we’ll answer any questions that you might have. Cheers!

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