Company

Order.co is an advanced spend management platform designed for businesses with a physical presence. It streamlines every aspect of procurement—from sourcing products and scaling purchasing across multiple locations to automating accounts payable and approval workflows. With Order.co, customers can efficiently manage all vendor spending in one centralized platform.

Opportunity

Order.co identified a valuable opportunity to offer net terms to its customers, allowing them to extend payment deadlines by 30, 45, or 60 days. Customers could set universal payment terms across all vendors on the platform, streamlining their payment processes.

This setup enables customers to manage their outstanding balances by paying vendors in full each month, providing businesses with enhanced control over short-term cash flow and more efficient spending management.

Beyond simplifying payments, Order.co also saw the potential to monetize payments on top of its existing SaaS fees, creating a new avenue for growth.

Why OatFi?

Extended payment terms require significant capital capacity to support the float, which can quickly become challenging to manage in-house. While Order.co initially relied on its own balance sheet to provide these terms, it quickly recognized the limitations of this approach, especially when scaling the credit program. 

In addition to securing capital, Order.co would have needed to develop a risk framework, underwriting model, and establish dedicated risk, capital markets, and credit operations teams—creating significant resource and time burdens.

Order.co also required a very specific payment setup and needed a partner with infrastructure capable of handling payments across ACH, Stripe Connect, and card rails.

By partnering with OatFi, Order.co gained access to a comprehensive, end-to-end credit solution through OatFi’s APIs. This allowed Order.co to continue offering flexible payment terms to its customers while avoiding the complexities and costs associated with managing an in-house credit program.

Solution

Through OatFi’s APIs, Order.co was able to automate underwriting decisions for its customers' monthly accounts payable while also funding their daily spend. By making a small series of API calls, Order.co could submit customers' KYB and financial data for underwriting, receive an approval decision, and request funding for transactional volume.

Since Order.co was already using Stripe Connect for payments and Lithic for card issuance, integrating the flow of funds was seamless:

• Order.co established a reserve account and a funding account at Lithic’s partner bank.
• OatFi transferred funds into the funding account to cover each day’s program spend.
• At the end of each billing cycle, Order.co processed customer repayments via Stripe Connect, and OatFi completed an intra-ledger transfer into its own Stripe account.

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Results

Embedding OatFi's credit infrastructure to fund charge cards eliminated the burden of building a credit stack, reduced credit risk to zero, and accelerated growth while maximizing a new revenue channel. Order.co was able to save time and engineering resources, allowing it to focus on customer acquisition and software development.