Hydr Launches Inventive Cash Flow Platform
The Manchester-based fintech startup Hydr has partnered with global business platform Xero to reform and improve cash flow for small companies. Launched on May 24, Hydr’s new finance program is meant to speed up invoicing, ensuring payments within 24 hours for a fixed fee. Hydr’s role in the partnership will be digital onboarding for small businesses, while Xero will focus on seamless integration.
Hydr was founded to avoid late payments in businesses whose model relies on invoice financing. Nicola Weedall, one of the company’s founders, says that the powerful effect of good cash flow has inspired the company to focus on making the invoicing process as transparent and straightforward as possible. Hector Macandrew, Hydr’s other co-founder, has stated they created Hydr to change how late payments are accepted as a given in our economy.
Weedall and Macandrew think that the success of a business should not depend on its capacity to wait for payment. One of the best ways to automate and improve cash flow is to use payroll software, but another would be to automate invoice enforcement, and that’s what Hydr now does.
Many small businesses in the UK struggle with invoicing in regular circumstances, but even more so during the pandemic; 62% of them have had to deal with late or frozen payments. Hydr hopes to change this by connecting with Xero and therefore enabling funding decisions in real-time. Businesses create invoices, a fixed fee is applied to them, and Hydr handles the invoice payment within the next business day.
The startup is located in the technology hub at Department, a bonded warehouse in Manchester operated by Enterprise City’s Exchange program. Hydr’s success is due in no small part to crowdfunding. In fact, this company is just one testament to the growing power of publicly sourced funding for companies and projects, particularly as crowdfunding sites become more and more popular.