In this five-part blog series, we identify the top four challenges working capital* lenders face and how software-as-a-service (SaaS) technology can help you overcome those challenges today and futureproof your business for tomorrow.
Part 3 in this series focuses on how SaaS technology connects multiple internal and external working capital finance software systems through pre-built application programming interfaces (APIs). APIs deliver innovation solutions to create streamlined processes and offer innovative solutions for your working capital finance customers.
*For simplicity, we generally define working capital as invoice finance and asset-based lending (ABL) finance. Invoice finance includes recourse and non-recourse factoring, invoice discounting, and shadow ledgering. Asset-based lending finance includes accounts receivable, inventory, equipment, and term-loan lending. The structure of these working capital finance lending arrangements varies regionally.
First, what is an API?
API stands for application programming interface, which allows different application technologies to share data, connect software programs, talk to each other in real time, and gather meaningful insights from a number of resources with the goal of creating a fully integrated end-to-end digital customer journey. This means you don’t need to use IT resources to build connections with all business-supporting applications such as credit reporting, e-signatures, ID verification, document creation, accounting, and risk management, etc.
In the simplest of terms, an API is the functionality happening behind the scenes that connects apps (or applications), so they work. And you use APIs every day in your personal life – like Google Maps. Or have you used that pop-up that gives you the ability to log in using your Google profile or Facebook login? The functionality that allows you to access the products or services seamlessly is because of an API that provides the connection between applications. Streaming services like Spotify or Netflix also use APIs allowing for movies, music, and other media to work effortlessly on all of your devices.
That same SaaS technology allows you to connect internal and external systems through these pre-built third-party APIs to create a seamless workflow and gather meaningful insights so you can focus on growing your working capital business.
API product partner examples for working capital lenders
Services are becoming more complex and require multiple products to create an end-to-end digital customer journey. You don’t want or need to build your own products if technology experts have already built them. Rather, you require an easy way to connect your systems with product partners who already offer a proven product or service. And the easiest way to do that is by leveraging API technology through a fintech provider like Solifi.
Here are a few examples of frequently used applications to connect with using plug-and-play APIs to resolve secured finance challenges.
- Codat – allows seamless connection to share and synchronize financial data
- DocuSign – manages documents securely, provides and receives signed documents electronically from any device conveniently and seamlessly in the cloud rather than in person or by mail or fax
- Equiniti RiskFactor – automates processes, digitizes data collection, and provides real-time data to reduce fraud
- Validis – optimizes processes and provides access to on-demand business information, data, and analytics
Solifi partners with the industry’s leading secured finance product providers
We currently partner with a number of working capital product providers that can quickly and easily provide a better online experience for your teams and your customers.
Our strong, diverse, and growing marketplace of product partners helps you connect with ease with APIs to improve your workflows, save you money, and create a fully digital customer experience.
Top reasons why working capital finance lenders should care about APIs
The following outlines the top reasons why APIs are important for you to manage your business today and futureproof your business in the years to come.
- Increases productivity with automated workflows (e.g., facilitates auto decisioning, scoring, ineligibles, credit request approvals and cuts down on errors)
- Retrieves insights in near real time to make faster and more accurate decisions and helps mitigates fraud (we’ll discuss in more detail later in this series)
- Saves operational and human resource costs (e.g., requires less training, reduces time spent on performing manual tasks and correcting errors)
- Removes insecure methods of transferring data (e.g., facilitates open-banking technology vs. mail, email, fax, in-person)
- Enhances customer experience with an end-to-end digital journey
With Solifi’s open finance platform, we are continually expanding our ability to integrate with leading third-party product partner applications to help you and your customers.
Learn more about how Solifi’s open finance platform and SaaS-in-the-cloud technology can help you connect disparate systems with APIs to overcome your top working capital finance challenges.