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Capchase Saves 600 Hours a Year Moving $750M+ via Modern Treasury

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Capchase is a revenue-based financing platform that provides global SaaS companies with rapid access to financing based on future recurring-revenue. Capchase uses Modern Treasury to automate payouts and manage payment flows within the Capchase Grow Platform, using ACH, Same-Day ACH, and wire transfers. With Modern Treasury, Capchase’s finance team has total control over their fund flows and improved visibility, including real-time insight into every domestic payment and international payout.

Use Cases

Financial Services

Products
Payment Methods

ACH, Same Day ACH

Location

United States

1 month

to go live with Modern Treasury

$60M+

moved per month

50 hours

saved per month

At a glance

  • The value of Capchase’s offering hinges on the speed, reliability, and transparency of payments. Manual wire transfers weren’t scalable, and third-party processors didn’t make sense, given Capchase's transaction sizes are often up to $1M in value.
  • With Modern Treasury, Capchase gained visibility into fund flows and better accuracy. The platform is developer-friendly, and integrating with Modern Treasury took the team only one month; the hundreds of engineering hours an in-house solution would have required were instead invested in mission-critical work.
  • Modern Treasury enabled Capchase to scale with minimal overhead. In 2022, Capchase moved over $750M through Modern Treasury. The team saved an average of 600 hours over the course of the year on workflows that were previously manual.

About Capchase

Capchase offers flexible, non-dilutive funding for global subscription-based and SaaS companies. With a focus on startups and growth-stage companies, Capchase acts as an alternative or complementary option to traditional seed funding. Offerings include working capital for customers looking to scale startup investments, financing for customer acquisition costs, and performance investments for companies seeking higher valuations without equity dilution.

The need for seamless payouts

Capchase customers request financing through an onboarding flow within the Capchase platform. Initially, customers upload key details from their own customer contracts and financial history to the Capchase platform—via underwriting algorithms, the platform can then quickly assess the quality of those contracts and extend a credit line.

Before initiating a draw, customers can assess cost of capital based on terms from their underwriting. Upon acceptance, the company credits customers against future revenue, and global customers receive the funds in their bank accounts, usually within 1-3 days.

Capchase Grow Flow of Funds Diagram

Capchase collects invoices from their customers’ accounts on a regular basis using ACH debit. Upon disbursement, Capchase pays out domestic customers via ACH, Same-Day ACH, and wire transfers using Modern Treasury, and via SWIFT wires for international payments.

“It's a seamless and predictable payments experience,” says Salima Ghadimi, Manager of Platform Operations. “Payment concerns are pretty much eliminated because all of this is automated through payments processing partners, including Modern Treasury. It's a low impact experience from the customer's perspective, and they get the visibility they need.”

Finding reliability, transparency, and automation in payments

To Capchase, the speed and reliability of payments are of utmost importance. The draws disbursed by Capchase are mission critical to their customers: unexpected payment delays can be damaging and interfere with company's daily operating activities and growth planning. This means payout timeliness, accuracy, and visibility on transaction status are vital.

Before working with Modern Treasury, Capchase was managing payments exclusively via manual payouts. When Capchase’s customer base increased, so too did the total volume of payments. Managing these payouts manually required too much time and introduced room for human error. Capchase needed a programmatic payment solution.

While researching options, Capchase found that third-party processors, such as credit card acceptance APIs and BaaS providers, couldn’t meet their needs. The average size of the company’s transactions, with draws that can average up to $1M in value, were prohibitive—these solutions also weren’t the best fit for B2B.

It was critical for Capchase to work with a partner offering direct access to underlying bank rails; a third party that sits in the flow of funds would introduce additional processing time and take control of the underlying infrastructure away from Capchase. The team also wanted a centralized payment system that was built to maintain and service complex payment flows.

Salima Ghadimi, Manager of Platform Operations at Capchase

“Before Modern Treasury, it was difficult to maintain a structured cadence around our payment operations. It was very ad hoc.”

Salima Ghadimi, Manager of Platform Operations at Capchase

The importance of diligent testing

Before fully integrating with Modern Treasury, Capchase tested to ensure a good fit.

“Right away we had more visibility. There was a level of transparency around our payment success rate we didn't have prior to Modern Treasury. Then, the integration was where we kicked into high gear and were able to grow our volume with minimal additional overhead,” Ghadimi says.

Capchase went live with Modern Treasury after a month-long implementation, leveraging Modern Treasury’s pre-built integrations. Compared to building in house, this saved Capchase hundreds of developer hours that were rerouted towards mission-critical product work. Working with Modern Treasury ensures Capchase can make reliable payouts, leverage complete visibility into payment flows, and conserve significant product and engineering resources.

“The developer experience using Modern Treasury is extremely straightforward and the documentation is really useful,” says Tech Lead Taras Yarema. “Plus, having a sandbox environment is important because, in payments, you need to be exact and correct to the penny.”

Taras Yarema, Tech Lead at Capchase

“The ability to use an exact replica of how the production environment works is critical for developers.”

Taras Yarema, Tech Lead at Capchase

Saving time and reducing capital drag

Capchase utilizes Modern Treasury’s suite of APIs to enable automated payments and manage payment flows within the Capchase Grow Platform. In 2022, Capchase moved approx over $750M through Modern Treasury, an average of over $62M per month. Prior to this partnership, Capchase spent several hours a day overseeing their payment flows—now, Capchase spends an hour a week managing payment operations thanks to automation. This time-savings accounts for around 50 hours regained monthly and 600 annually (a reduction of 90%).

Salima Ghadimi, Manager of Platform Operations at Capchase

“We’ve gained an incredible amount of extra time, both through the integration and by extracting the information Modern Treasury has on our payments. We use this data for our internal servicing and reporting purposes, which has been remarkably valuable.”

Salima Ghadimi, Manager of Platform Operations at Capchase

Modern Treasury’s automated payments provide Capchase with the reliability needed for consistent, on-time money movement. Two key pieces of this equation are the consistency of Modern Treasury’s platform and the fact that working and financing capital are not delayed.

“We've never had any kind of delays or downtime as a result of Modern Treasury. And we’ve never thought about cash drag as it relates to the platform—essentially, there is none. This is not always true in certain geographies and obviously, avoiding delays matters a lot to our business,” says Ghadimi.

Real-time finance in action (plus audit-prep)

With Modern Treasury dashboards serving as a command center, Capchase’s finance team has better control over their fund flows and real-time insight into all of their payments.

And because Modern Treasury’s platform tracks data on every transaction, Capchase’s finance and operations teams can easily analyze performance for company reporting and tracking.

“Our ability to provide required information completely off the shelf during last year’s full financial audit was invaluable. That the auditor could track every single transaction associated with every single loan in our system, and then associate it to every single pay out in our bank, was incredibly powerful. It’s amazing to see the stack work in a way that is so thorough and comprehensive,” Ghadimi says.

This visibility not only provides value for the Capchase team—customers also benefit from instant access to payment statuses directly in the platform.

The next chapter at Capchase

“The scalability and flexibility Modern Treasury affords us is incredible,” says Ghadimi.

Salima Ghadimi, Manager of Platform Operations at Capchase

“The fact that tomorrow we can decide to add to or change our bank or treasury infrastructure—without much disruption from the processing side or needing to evaluate additional layers in the stack—is really valuable.”

Salima Ghadimi, Manager of Platform Operations at Capchase

As Capchase continues to grow, they are looking into expanding geographically, working across additional currencies and payment rails. Another point of focus for the team is increased speed, with payment rails like RTP potentially providing increased value for Capchase customers.

Try Modern Treasury and see how smooth payment operations can be.

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