There are around 2.5 million SMBs - each with revenues of between $500,000 and $50 million - in the US and they typically process tens to hundreds of payments per month.

These companies are not large enough to install the sophisticated systems larger corporate customers use, and are instead stuck using ad hoc processes that are manual, paper-based and which take valuable time and money, argues MineralTree.

In addition, online banking services leave firms open to malware and phishing while paper cheques can be stolen and forged.

MineralTree claims that its service, offered through banks, simplifies and secures the approval, execution and automation of the accounts payable and cash management in a way that was previously unavailable to any but the largest corporations.

The system is layered over SMBs' existing accounting applications and integrates directly with their bank's payment systems, with no change to either.

The firm then provides three applications:

• The MineralTree Accounting Manager Application is a Web-based add-on to the SMB's existing accounting system used to manage payables.
• The CFO Application is used by the finance officer to approve and release payments and is is available as an iPad app and as a secure web app.
• The Bank Operations Application is a web-based app used by the bank to manage users.

All three are linked via the MineralTree Payments Server, which coordinates and manages all functions of the system - between customers, the bank and payment service providers such as cheque issuers. It also provides a single, universal conduit for all channels: cheque, ACH, wire, cards, PayPal, mobile banking, etc.

In February the start-up secured $1.5 million in series 1 financing led by .406 Ventures and has used this to build the cloud-based system. It has now formally launched, with Silicon Valley Bank on board as the first partner offering the technology to its SMB customers.

BC Krishna, president and CEO, MineralTree, says: "For millions of SMBs in the US, payments and cash management are ad hoc, paper-based, manual processes hampered by poor security and inadequate controls. Our initial funding round has enabled us to create a secure payments solution that delivers advanced protection and greater automation to this large and underserved market."