Lenkie Raises $62 Million to Fund Business Supplier Payments

Cashflow management platform Lenkie has raised $62 million in new funding.

The U.K. company’s Series A round, announced Tuesday (March 4), is aimed at helping Lenkie expand its payables financing business for small and medium-sized enterprises (SMEs).

“While the traditional borrowing experience remains slow, rigid, and reliant on outdated credit assessments (leaving thousands of viable businesses underserved),” the company said in a news release. “Lenkie’s cashflow platform gives SMEs access to fast, flexible funding exactly when and how they need it, removing growth bottlenecks and unnecessary friction.”

Founded in 2021, Lenkie has provided funding of more than 70 million pounds ($89.5 million) to underserved SMEs and funding payments to 2,000 suppliers in 40 countries. The company employs proprietary underwriting technology and real-time performance data, to provide “bespoke financing solutions” that enhance speed and financial inclusion, the release added.

“At its core, all lending is built on a foundation of trust,” said Sanjeev Jeyakumar, who founded Lenkie with Nnaemeka Obodoekwe. “We’re able to use data and technology to understand the nuances of each business to build that trust in seconds. This enables us to provide fast and flexible capital when it’s most impactful. By financing specific transactions we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow.”

In other news from the small business world, PYMNTS recently examined the shifting relationships small- to medium-sized businesses (SMBs) have with financial institutions (FIs), a shift that could favor community banks and credit unions (CUs) over national banking giants.

“SMBs don’t just want a bank — they want a partner,” David Durovy, senior vice president of transformation at i2c, said in an interview with PYMNTS. “And community banks and credit unions are uniquely positioned to be that partner.”

The move toward community banks is driven by practical concerns, that report noted. Despite the dominance of national banks, high fees and a lack of personalization are still significant pain points, offering local banks and credit unions an opening.

“After all, many SMBs — especially those in rural areas or with lower revenues — struggle to find the level of support they need from national banks,” PYMNTS wrote. “It’s no surprise that if you’re banking with a national brand, you don’t feel that personal connection,” added Durov. “You don’t get the same banker every time, you don’t get someone who knows your market or your business on a first-name basis. But in a local banking or credit union environment, you can get that.”

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