UK-based payments platform Mimo has secured a GBP 15.5 million investment led by Northzone to launch a platform that simplifies B2B payments. Mimo will deploy the new equity funding to continue to build out its B2B payments solution for SMBs and expand its headcount.

The company already works with 50+ SMBs and finance professionals and processes several million GBP every month via its early access offering. SMBs face issues in cash flow management In recent years, there has been a surge in SaaS tools tailored for SMBs' financial management. However, this has led to an abundance of applications, each specializing in specific tasks like invoicing, international payments, or payroll.

Managing this unbundled system proves time-consuming and difficult to reconcile in bookkeeping for small businesses. Cash flow management is the primary reason for failure among 4 in 5 businesses that go under, as per the press release. Small businesses must use a fragmented system of financial tools to manage this, and there is still often a significant lag between billing and the money needed for costs and payroll coming into their accounts, with the average UK-based SME being owed an estimated £22,000 in late payments.

Despite innovations in SaaS and ecommerce payment systems, SMBs not in these sectors still grapple with cash flow issues and administrative burdens. With SMBs constituting half of Europe's GDP, facilitating money movement between them can prevent closures and unlock growth potential. Better tools to understand and control cash flow Mimo, which stands for ‘Money In, Money Out’, provides a suite of financial tools that bundles the features needed for SMBs to better understand and control their cash flow.

Rather than relying on a disjointed network of applications including house banks, SaaS tools, and FX brokers to manage finances, Mimo gives businesses, accountants and bookkeepers a single tool for easier administration and better financial decisions. Through the platform’s credit offering, risk is minimised and working capital optimised so that businesses can send and receive payments on their own terms. Mimo’s tools allow for trading SMBs and finance professionals to pay suppliers with a click, access working capital, and get paid faster by customers, in any currency.

For businesses that hold inventory or trade internationally, such as those in consumer goods, retail, hospitality or wholesale, this requires a substantial number of invoices and multi-currency management. Mimo’s financial management solution solve time-consuming issues that are synonymous with these sectors. The platform enables and grows small business trade, by removing the barriers for money to flow between them.

Officials from Mimo said they’ve seen first-hand the time-consuming and fragmented processes SMBs must deal with when managing money. SMBs and financial professionals have to jump between apps and spreadsheets to pay invoices or make and chase international payments, all while trying to keep track of and manage cash flow. Mimo bundles this into a single tool so that businesses can easily manage the movement of their money and receive payments in any currency, faster.

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