Small and medium-sized companies (SMBs) face large challenges in terms of international funds. Alternatives to succeed in new markets throughout borders and abroad have by no means been better. However in contrast to their bigger rivals, SMBs are sometimes stymied by each the complexity of worldwide funds and the dangers of coping with new companions.
We caught up with Saujin Yi, Founder and CEO of LiquidTrust, a Los Angeles, California-based agency that gives a know-how that reduces the chance and equalizes the ability in enterprise relationships to allow companies of any dimension to companion, collaborate, and scale with flexibility, ease, and confidence. Earlier this yr at FinovateSpring in San Diego, Yi and her co-presenter, Head of Enterprise Improvement Sean Popock, demonstrated how LiquidTrust’s newest resolution allows companies to carry funds in third-party micro escrow accounts to protect in opposition to delays and defaults, in addition to fraud.
Along with LiquidTrust’s look at FinovateSpring in San Diego, the corporate additionally not too long ago introduced securing $4 million in seed funding. The spherical featured investments from Anthemis Feminine Innovators Lab Fund, Resolute Ventures, and Encourage Ventures, together with “strategic assist” from BMO and JP Morgan. The capital infusion got here on the identical time that LiquidTrust introduced the launch of Micro Escrow, its on the spot escrow fee resolution for SMBs.
In our dialog, we focus on the present state of small enterprise funds and the challenges SMBs face when conducting funds throughout borders. We study LiquidTrust’s options that present quick, verified international funds for these companies and, importantly, the potential influence of the Trump administration’s tariff coverage on SMBs in terms of worldwide funds.
Inform us about your self and the corporate you based. What downside does LiquidTrust clear up and who does it clear up it for?
Saujin Yi: I’m the founder and CEO of LiquidTrust. Earlier than that, I spent over a decade working on the intersection of small and medium-sized companies, fintech, and international funds. What we noticed many times, particularly when working with these SMBs, is that belief stays an enormous barrier to progress. Companies need to work with new companions, particularly throughout borders, however hesitate as a result of they’re afraid they received’t receives a commission or that what they’ve paid for received’t arrive.
It is a actual concern. SMBs within the US supply items and companies from a median of 9 completely different international locations (1). And whereas many look to their financial institution or credit score union for assist, 75% of SMBs say they’re dissatisfied with present cross-border fee choices. Greater than 1 / 4 say they’re instantly held again from international growth due to the complexity and dangers tied to present techniques (2).
LiquidTrust exists to resolve that. We companion with monetary establishments and marketplaces to offer trendy B2B fee options that make sending and receiving funds—particularly throughout borders—safer and easier for small and mid-sized companies. Our flagship product, Protected Pay, is powered by our patent-pending Micro Escrow™ know-how, which brings the sort of transaction safety that was as soon as solely out there to giant enterprises to the broader enterprise world. Sadly, greater than half of SMBs nonetheless imagine that cross-border fee techniques aren’t constructed for companies of their dimension. We’re right here to vary that.
LiquidTrust gives two major international fee strategies. Are you able to define these strategies and clarify the use circumstances for every?
Yi: At present, we companion with banks, credit score unions, and B2B platforms to supply their SMB prospects and members two methods to pay by means of one trusted platform: Easy Pay, for quick, verified international funds with no trouble, and Protected Pay, for escrow-style safety on higher-stakes transactions.
Easy Pay is good for repeat relationships the place there’s already a baseline of belief, however either side nonetheless need safeguards like fee validation or supply affirmation. That is generally utilized in ongoing vendor partnerships.
Protected Pay is for first-time, high-value, or higher-risk transactions the place items or companies are being exchanged. This selection makes use of our proprietary Micro Escrow know-how to carry funds and launch them solely as soon as particular milestones or situations are met. It’s particularly helpful in cross-border offers, customized orders, or any scenario that includes prepayment and supply danger.
We’ve heard from monetary establishments, marketplaces, and small enterprise homeowners that this type of flexibility—belief with out pointless friction—is strictly what’s been lacking. In truth, the worry of fraud is the primary motive over 1 / 4 of SMBs say they’ve averted attempting to make or obtain on-line cross-border funds altogether (3).
Are you able to inform us a few favourite implementation, deployment, or function of your know-how?
Yi: One in all my favorites is a latest implementation with a logistics platform that serves SMB exporters and importers. Earlier than LiquidTrust, lots of their prospects have been wiring cash upfront to abroad suppliers with no recourse if one thing went fallacious. It was traumatic and expensive.
By integrating and providing our Protected Pay with Micro Escrow™ embedded, consumers now launch funds solely as soon as paperwork are uploaded and verified. Sellers ship with confidence as a result of they know the funds are safe. What I admire most is how seamless the expertise is. The know-how is totally embedded into the platform’s current workflow, and the customers don’t want to consider “escrow” as a separate course of. It simply works.
You lately wrote in regards to the challenges that the proposed tariffs from the Trump Administration would possibly signify for small enterprise funds. What are these challenges and the way are fintechs serving to SMEs overcome them?
Yi: Tariff uncertainty creates chaos in two methods.
First, there’s fee timing. We’ve seen companies rush to ship full funds forward of a tariff deadline, solely to have items delayed or renegotiated mid-shipment. One enterprise proprietor put it bluntly: “Our cash is caught in limbo, and we will’t do something about it.” Second, there’s the influence on provide chain diversification. Discovering, vetting, and trusting one provider in a rustic the place you don’t know the language or native enterprise tradition is difficult sufficient. When tariffs all of the sudden drive SMBs to shift sourcing to a wholly new nation, it’s greater than only a logistics downside—it may be the distinction between staying in enterprise and never. And who’s to say they’ll be fortunate sufficient to search out one other reliable companion?
That is the place fintechs might help. We are able to construct fee techniques that match the real-world flexibility SMBs want—issues like conditional launch, milestone-based funds, and built-in dispute safety. When insurance policies shift quick and unpredictably, companies want instruments that assist them keep agile with out placing their money in danger.
Your organization has a compelling origin story. What in your background gave you the boldness to deal with the problem of small enterprise international funds?
Yi: Our workforce was already working intently with SMB homeowners, and in the course of the 2022 downturn, we saved listening to the identical factor: funds have been falling by means of. Some weren’t getting paid on time—or in any respect. Others have been paying suppliers however by no means receiving what they ordered, with no actual technique to recuperate their losses. It turned clear in a short time that the prevailing fee protections simply weren’t constructed for them.
I’m a problem-solver at coronary heart. My background is in engineering and finance, and what drives me isn’t constructing one thing flashy; it’s constructing one thing really helpful. I really like simplifying complicated techniques, like escrow, and making them accessible. That, together with our expertise within the house, gave me the boldness to construct an answer that works for the individuals who want it most.
LiquidTrust not too long ago secured $4 million in seed funding. What did this funding imply and what is going to it allow the corporate to do?
Yi: This funding permits us to scale thoughtfully. We’re utilizing it to construct extra partnerships with monetary establishments and B2B platforms, speed up onboarding, and strengthen our compliance infrastructure so we will assist extra international markets. Simply as importantly, it sends a powerful sign to the market. When buyers again a mission like ours—to make belief in funds accessible to everybody—it tells SMBs, “You’re not alone, and higher instruments are on their manner.”
What can we count on from LiquidTrust within the months to come back?
Yi: We’re targeted on increasing our footprint with monetary establishments and B2B platforms that need to provide trusted funds with out having to rebuild every thing from scratch. You’ll additionally see enhancements to our Micro Escrow™ know-how, together with extra configurability, broader use-case assist, and even easier integrations.
And we’re persevering with to hear. Most of our greatest options have come from conversations with enterprise homeowners and financial institution companions who simply need a greater technique to work. That’s what you may depend on from us. We’ll hold constructing, quietly and thoughtfully, to make belief simpler for everybody.
Notes:
SMB Ambitions barometer 2024
Worldwide B2B Funds: A Information for Entrepreneurs and Digital Companies
Borderless Funds Report, Oct 2023
Picture by Gerson Repreza on Unsplash
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