“While most U.S. banks focus digital solutions on retail consumers or large commercial enterprises, many SMEs lack a platform tailored to how owners and growing teams manage their everyday banking,” the lender said in a Monday (April 27) news release.
BMO says its offering addresses these needs with things like commonly used payment options and simplified user management, and clearer cash-flow visibility.
“Small and midsized businesses have long been underserved by traditional commercial banking solutions,” Derek Vernon, head of North American treasury and payment solutions at BMO, said in the news release.
“This new streamlined, intuitive experience that helps business owners quickly see their cash flow, complete everyday payments and keep their day-to-day workflow moving as their businesses grow.”
The launch follows a release of the platform in Canada in 2024 and a more limited U.S. release, BMO added.
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Research by PYMNTS Intelligence shows that 39% of small and medium-sized businesses (SMBs) function with less than a month’s operating cash at the ready, which makes them highly vulnerable to even slight interruptions to their payment cycles.
“When receivables are delayed, a ‘failure cascade’ begins: a single late payment can force an owner to postpone payroll, incur late fees from vendors, or turn to high-interest emergency borrowing,” PYMNTS wrote earlier this month.
“To break this negative feedback loop, SMBs are increasingly leveraging real-time payments to transform their accounts receivable from a back-office burden into a strategic tool for immediate decision-making.”
The effect of payment delays is rarely confined to one line on a business’ ledger, the report added. Inefficient or inconsistent cash flow was mentioned by 43% of SMBs as the chief obstacle to qualifying for financing, as lenders can see irregular inflows as an indicator for heightened risk.
This lack of liquidity can lead to a domino effect: 63% of business owners report missing expansion opportunities because of late payments, and 51% point to high operating costs as a compounding strain when funds are delayed.
“The cumulative financial toll can be significant,” the report added. “SMBs estimate an average annual loss of $39,406 directly tied to delayed payments, with one in 10 reporting losses exceeding $100,000. Beyond the raw numbers, these delays severely erode SMBs’ reputations: 26% of SMB CEOs admit that slow payments have led to the termination of relationships with buyers or suppliers.”
