Finance and human resources suite finally has raised $200 million in new funding.
The financing, a $50 million Series B from PeakSpan Capital and $150 million credit facility from Encina, will help the company bolster its small and medium-sized business (SMB)-focused offering, according to a Monday (Sept. 9) press release.
“Many SMBs today feel intense pressure to do more with less,” company CEO Felix Rodriguez, said in the release.
“The proliferation of SaaS tools means business owners have likely been talked into point solutions that miss the mark on productivity and cost savings, and just add noise and complexity. Financial hygiene is vital to business success. What we’re building at finally addresses finance, bookkeeping, and HR problems at their root.”
In addition, Rodriguez said, finally’s offering gives businesses more space to focus on “high-value and revenue-making activities.”
The platform provides business owners with a suite of tools for managing things like bookkeeping, payroll, billpay and expense management, per the release.
The news follows an earlier $10 million funding installment by finally — formerly known as Back Office — announced in February.
Meanwhile, PYMNTS wrote last week about another issue plaguing SMBs: delayed payments. It’s a problem that stems from outdated processes and slow manual systems, and one that threatens businesses’ stability and growth potential.
As the landscape changes, a report by PYMNTS Intelligence and American Express, “End the Wait: SMBs and the Protracted Challenge of Delayed Payments,” poses a question: Could a new wave of digital transformation point to the end of this chronic delay?
“For SMBs, delayed payments are not just an inconvenience, but a severe threat to cash flow and operational stability,” PYMNTS wrote. “Nearly one-third of SMBs still rely on manual processes for ad hoc payments, which make up a significant portion of their revenue. BILL’s survey reveals that 46% of SMBs without automated accounts receivable (AR) software consider delinquent payments their top concern.”
Up against manual processing constraints, many SMBs are embracing financial technology (FinTech) solutions, though many remain saddled with outdated systems in spite of a projected 50% surge in payment volumes and a 46% rise in invoicing over the next three years.
“High costs and perceived complexity deter more than one-third from adopting automated solutions,” that report added. “But 64% are exploring tailored financial services through integrated software platforms. The shift toward cloud-based services is notable, with more than 80% of SMBs seeking these solutions to overcome inefficiencies.”
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