When we launched Likvido back in 2018, I made this blog post. Looking back, we ended up building a completely different company. We started out believing we should build a ‘digital debt collection’ company, but instead, we decided to focus on something completely different:
We help companies grow.
This might sound like a dating profile from every company, but it’s really true! We do three things really well:
- Save time by automation and managing activities
- Optimize cash flow by getting paid faster and give access to financial products
- Reduce credit risk/losses
What is Likvido
We’re bundling different services that are mostly used by larger companies, and making them accessible in one tool. Some of the features we’re bundling:
- Automatic reconciliation. Instead of manually updating your accounting system when an invoice has been paid, we do it for you. Automatically.
- E-invoicing. Try sending an invoice to the government… They require specific formats. At Likvido you can invoice public institutions globally.
- Automatic reminders. We send our friendly reminders to customers if they’ve not paid on time. If you need specific workflows for specific customers or groups of customers? Done!
- Dynamic payments. Want to offer different payment methods for different customers? And do you want to have the newest and most modern payment methods available? Likvido offers that
- CRM system. Everything around getting paid comes back to people, and managing your activities such as calling/following up/approving things – that is managed in Likvido
- Credit ratings. Look up your customers before you make a sale to verify they’re creditworthy
- Debt collection. If an invoice is not paid on time, it can be sent to debt collection with one button
What’s quite fun is that many of the features are solved really well by individual tools today. The challenge with individual tools is that companies just don’t get around to setting them up plus they’re quite expensive.
At Likvido, we’re bundling all of them together. You create an account, and you get access to all of the features. If you’re a very small company we offer everything through a ‘pay-as-you-go’ model, if you’re bigger we have a subscription model.
Building a bundled product
When building a bundled product, the obvious disadvantage is you cannot become as good in a specific area as another company that focuses specifically on this area. We can never beat a ‘credit rating company’ in direct competition. We have to build a more broad product, meaning we have fewer resources on that specific product than the competition which has a 100% focus.
We’re extremely clear around this in Likvido. That’s why we have a few core things we consider “must-win product battles”. An example of this are ‘Workflows’. ‘Workflows’ are the core logic that determining: who experiences what, when. Example workflow: B2B customers in region X, with invoices between 500 USD and 1.500 USD, have to send this specific type of invoice, with these reminders if not paid on time and when we receive the payment, it’s being paid into this specific bank account. Very powerful
An example where we don’t consider ourselves experts would be credit ratings. Here, we partner with a company like Risika, that has multiple PhD’s working on that challenge. We pay them a fee for giving our users access to the product. Our users would not have bought Risika anyway, so it’s a win/win for both parties.
Looking ahead, we will become insanely good at a few things in our bundle, which we consider our “core”. At the same time, we’re also going to bundle more features into the solution. There are especially a few more features that are insanely interesting, that are not available to smaller companies today.
With that being said. I think Likvido will become a must-have tool for all SMEs that sells on credit. For every month that goes by, Likvido becomes more valuable and important.
And trust me, it’s a huge pleasure to have co-founded the company and run it as the CTO.