Euler Hermes, C2FO Team Up On Unpaid Invoice Protection

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Alternative small business (SMB) finance company C2FO is integrating a new solution from Euler Hermes to help small businesses protect against the risk of unpaid invoices.

In an announcement on Thursday (Feb. 21), C2FO and Euler Hermes announced their partnership, which will link C2FO small business customers with Euler Hermes’ Single Invoice Cover product, protecting B2B firms against the risk of non-payment and optimizing credit terms for buyers. Businesses will be able to purchase credit insurance on single invoices via a digital platform, while being able to analyze and manage credit risk exposure.

C2FO and Euler Hermes noted the synergies in their operations as both companies work to optimize cash flow management for businesses.

“C2FO was started with the mission to unlock working capital for companies around the world,” said C2FO President and Chief Operating Officer Sanjay Gupta in a statement. “Our new partnership with Euler Hermes gives these companies a way to insure the receivables they rely on to grow and expand their business.”

In another statement, Euler Hermes Americas President and CEO James Daly said the collaboration with C2FO helps the firm expand its offering and focus on innovation.

In an email to PYMNTS, Gupta said that late payments and longer B2B payment terms have caused a market in which “it is harder than ever for companies to get the cash they need to run and growth their businesses.”

“For small and medium-sized businesses, both trade finance and trade credit insurance can be difficult to obtain,” Gupta continued, pointing to the benefit of combining a trade credit insurance product with a financing solution for SMBs. “Not only that, but these solutions are typically offered individually, meaning that even large companies have to combine products from various sources.”

Last year, C2FO raised $100 million from Allianz X and Mubadala Investment Company, as well as existing backers. At the time, C2FO said it would use the investment to focus on growth and international expansion. The funding came at a time when C2FO also revealed it had reached the $1 billion-in-financing-a-week market, linking businesses across 100 countries with working capital and trade finance.

That same month, Euler Hermes announced another integration with invoice finance platform MarketInvoice, which also sees small business borrowers accessing Euler Hermes’ trade credit risk insurance solutions to protect against the risk of non-payment. Euler Hermes U.K. and Ireland CEO Milo Bogaerts said in a statement last February that businesses today live “in uncertain times,” and thus need to plan ahead and mitigate risk.