Buy-now pay-later (BNPL) platform for B2B transactions Butn has signed a multi-year partnership with MYOB in a bid to solve cashflow challenges for small businesses.
Under the deal, Butn will deliver business management platform MYOB a fully integrated invoice funding solution, assisting businesses in managing cashflow and driving growth.
In return MYOB will make an undisclosed investment in the fintech.
The partnership forms part of Butn's successful $12.5 million funding round and will give qualifying MYOB SME customers access to upfront payments for outstanding invoices.
MYOB general manager for financial services Andrew Baines notes 29 per cent of SME respondents to the company's latest survey cite cashflow as the cause of "a lot to extreme" stress.
"Through providing quick access to cash in combination with the smart decision-making capabilities of accounting software, MYOB and Butn have a unique opportunity to solve a core issue impacting small business," says Baines.
"Smooth cashflow will be critical for businesses as they move to regain normal trade following the pandemic.
"As Australia enters its next phase of economic recovery, SMEs will be major contributors to the nation's revival and growth, provided they can remain nimble and continually invest in their business. Access to finance during this time will be critical. We are very pleased to have found the right partner in Butn with whom to support SMEs at this crucial time."
Butn co-founder and co-CEO Rael Ross says timing of the partnership is opportune given many companies are feeling the brunt of cashflow issues without JobKeeper as a buffer.
"Easy access to fixed cost finance is important for SMEs to fully participate in Australia's rapidly changing economic landscape," says Ross.
"We're excited to partner with MYOB to extend Butn's reach to help more small businesses unlock their working capital constraints to pursue growth.
"MYOB customers will benefit from being able to get access to constrained cash flow and being able to invest the upfront cash back into their businesses to drive sales, pay staff, purchase materials or make supplier payments."
Butn's latest announcement comes on the heels of a $12.5 million raise that boosted the company's ambitions to list on the Australian Stock Exchange (ASX: ASX).
The major funding round was oversubscribed and backed by investors including Wilson Asset Management (ASX: WAM) and Regal Funds (ASX: RF1).
Butn operates a platform by which, in just one minute, any business in Australia can be funded for any product they may need, all with the push of a button.
By integrating directly on the transaction platforms of clients, and with simple five-minute setup for customers, Butn can be deployed almost anywhere.
Think Zip Co or Afterpay, but for B2B transactions.
Since its establishment in 2018, Butn has funded more than half a billion dollars' worth of goods and services for Australian businesses large and small, and it's showing no sign of slowing down.
In 2020 alone $166.6 million was lent to businesses, with the service attracting a significant pool of potential end users from around Australia.Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.
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