HNC Financial Solutions is offering software to enable credit decisoning in real-time over the Internet.
“Traditional firms are investing heavily in trading on the Internet,” said Bruce Hansen, president of HNC Financial Solutions. “Some projections indicate that over 80 percent of large corporations will use the Internet for a majority of their B2B transactions by the end of 2001. That means exchanges will need to sign up new accounts and make credit decisions much more quickly.”
Capstone Decision Manager automates registration and provides the decisioning process for financing within an exchange. The system interfaces with sources such as Dun & Bradstreet and Experian business data, to assess credit risk.
With an increasing number of businesses moving purchasing functions to Internet-based systems, demand for B2B electronic commerce is widely expected to mushroom over the next few years. Banc of America Securities estimates that worldwide B2B e-commerce will grow from less than $20 billion this year to roughly $13 trillion in 2004 – a 650-fold increase.
This extraordinary growth rate is due in large part to the cost savings inherent in B2B transactions. On average, corporations spend $100 on paperwork alone each time they make a purchase. Moving these transactions to the web could slash costs by 90%, saving companies billions each year.
E-finance infrastructure provider Aceva Technologies plans to use Capstone. “More than 90% of B2B transactions involve the extension of trade credit,” said Bill Fischer, vice president of risk management for Aceva. “Trade credit can take days or even weeks as a manual process. Integrating Capstone into our e-finance platform provides B2B customers with real-time credit decisions.”
Headquartered in Silicon Valley, Aceva Technologies has received venture funding from Accel, idealab Capital Partners and Sequoia as well as strategic corporate investments from AOL and Oracle.