“We are faced with a global small business cash flow epidemic,” Shawn Painter says. The Cashflow CEO and co-founder wants to change what he calls a “broken financial system” that normalizes late customer payments and puts small and medium-size businesses (SMBs) at a serious competitive disadvantage.
The newly developed fintech - by the partners Mohamed Salamé, Ray Chery and Shawn Painter -, Cashflow.io, uses open banking technology to let SMBs integrate their customers’ online payment information into invoicing agreements so businesses can get paid as soon as they deliver their goods or services.
Not having to wait 30 days or longer to collect on invoices will help steady a critically risky aspect of entrepreneurship - cash flow instability.
What Cashflow.io can do for entrepreneurs
According to Harvard financial experts, entrepreneurs and SMBs often suffer “resource poverty” because of their smaller size and need to think creatively to adapt processes that are often meant for big businesses. Cashflow promises to give power back to business owners so they can spend less time chasing payments and more time focusing on developing their firms.
At the heart of our company is the unwavering belief that we are addressing major customer pains because we took the necessary time to listen and learn directly from business owners
In addition to their invoicing technology, Cashflow will also offer a loan feature later this year to fix what Painter calls “inadequate sources of viable short-term operating loans”.
“Any small business owner doing good business should have access to reasonable financing options. They should, but don’t.”
Building a better startup community
The Cashflow CEO knows the importance of building a good business community when getting a startup off the ground. “Having personally grown up in the Ouest-de-l'Île, I know how unique the mindset is when it comes to building businesses and thinking globally,” he says.
This positive outlook is especially important when support for new ideas and technologies isn’t always easy to find. “The Canadian startup mentality is that of scrutinizing why a startup will not work, says Shawn. The early days of conceiving an idea, a vision, is not easy.”
Taking strides to overcome roadblocks
Throughout all these challenges, Shawn was determined to see his startup through to market. “At the heart of our company is the unwavering belief that we are addressing major customer pains because we took the necessary time to listen and learn directly from business owners,” he says.
With a financial climate that sometimes feels stacked against small and medium-size businesses, an easy-to-use digital agreement that helps entrepreneurs get paid faster is a welcome sight.
How PME MTL provided critical support
Having a stable cash flow is more important for SMBs than ever during the current pandemic crisis, which is why PME MTL was so keen to get involved with this unique operation.
“From the very first introduction, PME MTL focused more on how to help us get funding than whether our software was going to change the world. It was refreshing and, most importantly, felt supportive. PME MTL also offered a lot of valuable constructive feedback. They got their hands dirty with us and really dug into taking the necessary time to absorb our somewhat complex business plan. They were true professionals.”
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Cashflow is supported by PME MTL Ouest-de-l'Île.