London-based buy now pay later (BNPL) platform Playter has raised $55m (£45m) in a funding round from the backers of fellow BNPL firm Klarna.
Playter is a platform that gives businesses access to BNPL purchases in the same way companies like Klarna provides instalment payments to consumers.
“BNPL for business is a completely different concept to B2C BNPL,” said Playter founder and CEO, Jamie Beaumont.
“Right now, there are very few B2B purchases happening online. We’ve created a platform that gives total control for businesses to dictate what payment terms they want to have.”
SMEs can use the service to spread the payments for business-related purchases, including software, agency fees, office rent, marketing, and more, over six months to a year.
“For SMEs, the ability to take advantage of annual discounts on software as well as smoothing out cashflow can be invaluable in tougher times,” Beaumont added.
“Playter doesn’t just help businesses with cash flow, it also helps redistribute liquidity, allowing businesses to invest in high-growth areas such as marketing, hiring and development.”
The new round, which follows a $1.7m seed round in March, was led by Klarna backers Adit Ventures, along with Fasanara Capital, with participation from Fin Capital, Act Venture Capital, and 1818 Ventures.
“[Playter is] a unique SME-focused BNPL platform that helps growing companies better manage their working capital,” said Jon Cholak, managing partner at Adit Ventures.
“We see a growing need for their services across the ecosystem, particularly as capital and credit conditions tighten because of broader macroeconomic trends.”
The latest cash injection will go towards the company’s UK growth, although it is also eyeing up the possibility of international expansion down the line.
BNPL has come under criticism recently from consumer protection groups and credit firms. The service is similar in principle to a loan, however, it is largely unregulated.
The government recently announced a proposal to regulate the BNPL industry, although it is focusing on consumer-facing BNPL products.