Today in B2B: Flexible Credit Boosts Software Startups; Marathon Ventures Backs B2B Growth

Today in B2B payments, suppliers and buyers push for more consumerized B2B payments, and Marathon Ventures launches a $26 million growth fund for B2B platforms in emerging markets. Plus, flexible credit options are providing software platforms with increased liquidity and new opportunities for growth, while friction remains in cross-border payments.

Marathon Ventures Debuts $26M Emerging Markets Startup Growth Fund

Colombia-based venture capital (VC) firm Marathon Ventures recently closed its first fund of $26 million, saying it will invest in close to 20 B2B platforms in FinTech, Software-as-a-Service (SaaS) and marketplaces.

The fund will bring “a concentrated, value-add approach to seed capital in the region,” according to the Marathon Ventures announcement, adding that the VC firm will help the companies build partnerships, conduct research, recruit talent and connect them to advisors and investors.

The new fund has invested in eight B2B platforms, representing a 2x return on the total fund size, according to the announcement.

30% of US Firms Say Long Period of Completion Is Cross-Border Payments Friction

Almost one-third (30%) of U.S. businesses that engage in cross-border trade say the long period of completion is the largest cross-border payments friction they face, according to “Innovating Cross-Border Payments,” a PYMNTS and Visa collaboration based on a survey of 456 decision-makers from businesses across 22 industries.

U.S. businesses rank the long period of completion No. 1 among their payment decision-makers’ “big five” cross-border pain points, with the other four being payment fraud, data security, knowledge of foreign exchange (FX) rates and fees, and knowledge of transaction and settlement.

Among U.K. businesses, the long period of completion is the least of their worries, as they rank it No. 5. Topping their list of cross-border pain points is payment fraud, cited by 33% of these firms, with data security close behind and cited by 32%.

Flexible Credit Options Help Software Startups Balance Growth, Liquidity

More software companies are starting up every day to meet the increasing need for Software-as-a-Service (SaaS) — and often, they’re run using Excel spreadsheets.

SaaS Capital, which focuses on growth-stage B2B software companies with revenue of $3 million to $30 million, helps these businesses move to the next financial level and growth stage through monthly recurring revenue (MRR). Usage-based models are outdoing perpetual licensing these days, managing director Rob Belcher told PYMNTS.

Fast, Easy and Familiar: Suppliers and Buyers Want Consumerized B2B Payments

Norm Marraccini, senior vice president and head of commercial and retail solutions at FIS, told PYMNTS that those who are still writing checks for B2B transactions now have the opportunity to conveniently pay bills and review invoices on their phones.

When business owners can send a request for payment, enable payment with a few clicks and clear payments in real time, that’s a better option for the business owner than writing checks, starting an automated clearinghouse request or waiting days to get invoices, Marraccini said.