Crossflow Payments

Crossflow Payments, operating as a marketplace for working capital finance, was founded in 2014 by Tony Duggan. The firm’s establishment stemmed from Duggan’s extensive experience in supply chain dynamics, notably as the supply chain development director at UK retailer Wickes. During his tenure, he spearheaded the implementation of large-scale electronic data interchange (EDI) systems, transitioning paper-based processes to a digital format, an achievement that earned Wickes an Excellence in Ecommerce Award. This was followed by a period working with the SWIFT banking network and HSBC on the Bolero project, an early consortium involving Intel and Adobe that combined concepts of blockchain, fintech, and supply chain finance. The complexities and ultimate halt of this project due to the 2008 financial crisis inspired Duggan to create a more streamlined, scalable, and user-friendly platform, leading to the birth of Crossflow.

The company's core business revolves around a technology-driven platform that connects large corporations and their suppliers with a diversified pool of institutional funders, including hedge funds, pension schemes, and other financial institutions. This model addresses the persistent issue of late payments and constrained working capital for suppliers. Crossflow's platform enables suppliers to receive early payment on their approved invoices, typically within 48 hours, by selling them at a discount to funders on the marketplace. The direct client for Crossflow is the large corporate entity, whose creditworthiness underpins the transactions, making it a lower-risk investment for funders. Revenue is generated from the fees associated with these financing transactions. The platform utilizes AI-powered algorithms to match supplier demand for cashflow with funder criteria based on risk, yield, and capacity, automating the process of capital deployment.

The service portfolio includes invoice financing, dynamic discounting, and purchase order financing, designed to provide flexible liquidity solutions. A key feature is the platform's ability to handle global transactions and payments in local currencies, reducing expensive conversion costs for suppliers. Crossflow also developed solutions with an ESG (Environmental, Social, and Governance) focus, enabling dedicated ESG funding to support suppliers in meeting their corporate customers' sustainability requirements. The company secured a Series A funding round in early 2017 led by Calibrate Management, which took a minority equity stake to fuel its growth strategy. Subsequently, Crossflow was recognized in the London Stock Exchange's ELITE Program and the Financial Times' FT1000 list of fastest-growing companies.

Keywords: supply chain finance, working capital, invoice financing, fintech, B2B payments, trade finance, marketplace lending, corporate finance, dynamic discounting, purchase order financing