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Can Transactional Finance Provide Valuation Bumps to P2P Tech Companies? (Part 1)

I have been asked countless times about how vendors get compensated when they enable finance. The question typically goes, “How does Taulia or Basware or C2FO make money off finance?” The answer is not so simple — an implementation fee, a subscription fee and perhaps a 20% to 25% gain share on the income earned. Who knows? What you really need to understand is who should get compensated for risk and what’s the value of information to funders. For many banks that have funded vendors, the value on the approved invoice is the integration work that vendors have already done.