Fintech Friday: Likvido – streamlining invoice management

Maximilian Frimmer, CEO and co-founder of Likvido, spoke with Efma’s Boris Plantier about his company’s mission to support SMEs with faster, automated collection processes.

What led to the creation of Likvido?

Back in 2018, my co-founder and I went bankrupt with our first startup. What pushed us over the edge was clients paying late. All processes in our former company were automated except for invoice management which, in the end, consumed our time and cash flow. Following this experience, we made it our mission to find a solution to this critical problem. That is how we came up with the idea of Likvido, where we are building the new standard in invoice-management automation.

Could you present Likvido's offer?

Likvido is an invoice management system that streamlines and automates the entire invoice-to-cash process with key features such as credit scoring, automated reconciliation, and bookkeeping, personalized dunning flows, and integrated third-party debt collection.

By implementing Likvido’s automation solution, customers can save up to 80% of the time allocated for debtor management and receive their invoice fees 20-50% faster.

What's coming next for Likvido?

Likvido has now raised a €2.5 million seed round led by BlackFin Tech, and joined by existing local investors. The funds will be used to further develop Likvido’s solution for automating the invoice management and the collection processes in a faster and more user-friendly way, closing the EUR 400 billion financing gap for European SMEs. The solution is particularly relevant for SMEs losing vital liquidity right now due to COVID-19. 

Our goal is to become the European market leader within the invoice-management-system category. This seed investment will allow the optimization of our existing process automation solution, and add a prediction engine that utilizes all transaction data to create a transaction-level credit rating. This prediction engine lets us forecast the risk and cash flow for each specific invoice. By understanding real-time transactional risk for all transactions, we will long term be able to offer financing and credit insurance for SMEs.