Interview with Michael Noble – CEO of Apruve
Frost & Sullivan has estimated that B2B eCommerce revenues will reach $12 trillion by 2020. As B2C quickly adapted to their consumers, offering 2-day shipping, easy navigation and payments, we are also seeing B2B eCommerce making drastic improvements to meet their customers’ needs, especially as it relates to payments.
Q: Tell me about the founding of the business, the history.
Apruve was founded in 2013, as a B2B ordering process that allowed multiple users without corporate buying power to request approval from their managers for eCommerce purchases. Managers would be able to view their employee’s cart and approve or decline the purchase in a matter of seconds.
In 2016, Apruve decided to automate the entirety of the B2B ordering process and launched its B2B credit management platform. The revolutionary solution drew the interest of a few leading venture capitalists: TTV Capital and Allegis Capital.
Q: What is the mission that the business sets out to accomplish?
For decades, business-to-business transactions have been one sided. Buyers have been able to pay for their purchases days or months after they order, leaving the seller with a lack of immediate capital and a need to manage a customer’s receivable in order to get paid.
Apruve saw this injustice and set out to make the process of extending credit a win-win for both parties. Businesses can still pay on their terms with a revolving line of credit, but sellers get paid within 24 hours of any new order.
We call it “CMaaS” for Credit Management as a Service. Apruve manages and finances a seller’s credit program so they can get back to growing their business.
Q: What are the main products that the business offers?
Our credit management platform combines account management, credit management and invoice financing and automates the entire system from credit approval and online ordering, to invoicing and collections. We work with third-party banks to underwrite all orders placed on terms so sellers are paid out within 24 hours and take zero credit risk.
Q: Can you give some stats on how the business and/or the products have helped clients?
Our service has automated the standard for B2B purchasing by extending credit and streamlining B2B eCommerce payments. In doing so, sellers drive 30-40% more sales online by offering an integrated credit line to their clients. They also see a 40% reduction from traditional, manual A/R practices associated with managing a credit program themselves.
Q: Any hurdles you can share about the business growth and how they've been smoothed out?
It was a challenge to figure out the financing component of our business model, but we’ve found some great banking partners to help us underwrite our platform. This has lead us to incredible growth. We are projecting to double in size over the next few months and hope to be managing more than 100,000 buyer accounts for our sellers.