The deal

Flex has raised $120m in a Series A debt and equity funding round. This includes debt financing from CIM with an agreement to fund up to $100m. Equity capital of $20m is led by Florida Funders with participation from Home Depot, MS&AD Ventures, Companyon Ventures and others.

Why it matters

SMBs continue to power the US economy, creating two-thirds of all new jobs and accounting for 99.9% of all US businesses. Flex’s core product is a credit card that caters to traditional small businesses. SMEs have historically been underserved by financial institutions and up-and-coming fintech platforms. The company offers 0% interest for 60 days on all purchases, providing Net-60 float and flexibility for businesses to grow.

Flex, formerly known as Flexbase, reports significant demand from over 20,000 companies. It has moved beyond its initial construction focus to service industries. Examples include logistics, trucking, farming, mom-and-pop service businesses, digital businesses, e-commerce companies, restaurants, real estate and more.

“Flex is reimagining how finance is done at businesses and has a proven track record when it comes to supporting businesses to provide more than just a credit card but a platform to manage their entire financial life,” said Saxon Baum, partner of Florida Funders.

“We couldn’t be more pleased to invest in such a cutting-edge fintech and look forward to seeing their tremendous growth.”

Jeff Hilton, MD of CIM added: “As investors focused on providing capital to small businesses in underserved communities, we are excited by Flex’s potential to provide small businesses with access to responsible credit and the flexibility they need to manage their cash flow and growth. We’re eager to continue to support Flex as they provide innovative cash flow management products and solutions.”

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Launch of Flex Credit Card, Flex Banking and finance super app

In addition to the funding news, the company has launched its Flex Credit Card, Flex Banking and finance super app. The products are targeted at business owners looking to streamline the finance back office of businesses and accelerate their growth.

The platform bundles every aspect of the back office. This incorporates banking to receipt capture, employee cards with specific limits, expense tracking and more, all in one place.

“Enterprises and modern tech companies have seen significant innovation in the last five years. But very little has come to our main street small businesses that have been the backbone of this country, driving our economy forward,” said Zaid Rahman, founder and CEO of Flex.

“Most B2B fintech companies serve Silicon Valley tech startups or large enterprise companies. They neglect small businesses that are struggling to find the credit and tools they need to effectively manage their finances. Flex’s new offerings focus on supporting small businesses. They give them the credit they deserve and provide the essential finance back-office tools they need to achieve success.”

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.