HSBC U.K. provided a $26.3 million funding round for B2B eCommerce and spend management company Proactis, the company revealed.
In an announcement on its website, Proactis said the investment will enable the company to target small and medium-sized businesses (SMBs) and their cash flow challenges by incentivizing faster payments to small firms. In addition to the new funding, Proactis announced that its new CEO, Tim Sykes, is launching a review of the company's operations in the U.S. and Europe "to ensure ... resources are focused on the considerable opportunities open to it in those territories."
The company is also gearing up to launch its Accelerated Payment Facility, a solution designed to promote faster payments to small suppliers.
"There is a disconnect in the currency payment culture that benefits neither buyers nor suppliers. It stymies investment as well as working capital," Proactis Financial Solutions Director Anthony Persse said in the announcement. "We have been exploring technologies that can improve access to working capital by accelerating payments to suppliers. Our approach will disrupt traditional funding solutions that are not addressing the real needs of businesses. Through our accelerated payment technology, we will re-establish positive business practices through effective collaboration and simple access to cash."
The HSBC funding supports Proactis's ability to link small business customers to its new technology offering to manage cash flow throughout the B2B supply chain, the company added.
In another statement, HSBC U.K. Global Relationship Director Wayne Shadlock said the company has been working with Proactis for more than 15 years, and is supporting its effort to accelerate B2B payments.
"The business is well positioned to drive widespread access to liquidity for SMEs, which will ultimately boost cash flow and support economic growth," Shadlock added.
Proactis was acquired by Millstream Associates in 2016 for nearly $19.5 million, a deal that enables Millstream to cross sell Proactis offerings with its own eProcurement solutions.