Small business finance and HR platform Finally has secured $200 million in new funding to expand its suite of tools for SMBs. The company, formerly known as Back Office, raised $50 million in a Series B round led by PeakSpan Capital, along with a $150 million credit facility from Encina.
Finally’s platform offers SMBs an integrated set of tools for managing critical back-office functions like bookkeeping, payroll, bill payment, and expense tracking. The fresh capital will allow the company to further develop its offerings aimed at streamlining financial and administrative tasks for small and medium-sized businesses.
CEO Felix Rodriguez highlighted the challenges many SMBs face today, noting that owners often feel pressured to do more with less. He pointed out that the proliferation of SaaS tools has led many businesses to adopt point solutions that fail to deliver on promises of productivity and cost savings, instead adding complexity.
Rodriguez emphasized the importance of sound financial practices for business success, stating that Finally’s platform addresses core finance, bookkeeping, and HR issues. The company’s goal is to give business owners more time to focus on high-value activities that drive revenue growth.
This funding round follows a previous $10 million investment announced by Finally in February. The substantial increase in funding reflects growing interest in solutions that can help SMBs manage their finances and operations more efficiently.
The news comes as many small businesses continue to struggle with issues like delayed payments, which can severely impact cash flow and stability. A recent report by PYMNTS Intelligence and American Express examined this ongoing challenge, exploring whether new digital technologies could help alleviate the problem.
The report revealed that nearly one-third of SMBs still rely on manual processes for ad hoc payments, which make up a significant portion of their revenue. For businesses without automated accounts receivable software, 46% cited delinquent payments as their top concern.
Despite projections of substantial increases in payment volumes and invoicing over the next three years, many SMBs remain hesitant to adopt automated solutions due to perceived high costs and complexity. However, the landscape is shifting, with 64% of SMBs exploring tailored financial services through integrated software platforms.
The move towards cloud-based services is particularly notable, with over 80% of SMBs seeking these solutions to overcome inefficiencies in their current systems. This trend aligns with Finally’s approach of offering a comprehensive suite of cloud-based tools for financial management and HR.
As SMBs face mounting pressure to optimize their operations and maintain healthy cash flow, platforms like Finally are positioning themselves as key partners in navigating these challenges. By providing an integrated set of tools that address core financial and administrative functions, these solutions aim to free up business owners’ time and resources for more strategic activities.
The substantial funding secured by Finally underscores the growing recognition of the need for efficient, user-friendly financial management tools in the SMB market. As more businesses seek to streamline their operations and improve financial hygiene, companies offering comprehensive, cloud-based solutions are likely to see increased demand and investment.
With its newly acquired resources, Finally is well-positioned to expand its offerings and potentially capture a larger share of the SMB finance and HR market. The company’s focus on addressing fundamental pain points for small businesses could prove attractive to owners looking to simplify their operations and improve overall financial management.