This week, Financeit announced that it doubled its lending program partnership with Pacific & Western Bank of Canada, increasing the total from $35M to $75M this year.
Financeit offers a compelling point-of-sale customer financing, taking on the industry focused on big-box retailers and large deals. As a result, smaller merchants are able to compete with large retailers and offer customers an easy online application to get loans approval on the spot. On the other hand, Financeit helps banks find new borrowers, so it’s a win-win all around.
“We started our partnership with Pacific and Western Bank of Canada last year on a $35M lending program that proved to be very successful,” Casper Wong, Financeit COO and co-founder told BetaKit. “This year, we were able to double that commitment to $75M, which will allow us to continue focusing on growth and building out our Canadian lending program for small to medium sized businesses.”
Today, Financeit has more than 3,800 merchant partners offering loans ranging from $500 to $100,000. Since its 2011 launch, the company has processed $825 million in loans in Canada and the United States.
All these numbers add up to two major wins: validation and growth. For smaller businesses, Financeit offers a compelling white-label solution to offer loans and minimal risk and make that sale, especially when the sale amount is relatively large. For banks, the company offers a way to expand lenders’ base. As an intermediary, there is technology doing what it does best: addressing pain-points at scale and solving complex problems simply.
“We look forward to the continued growth of our partnership with Financeit and are delighted to be assisting small to medium-sized Canadian businesses prosper by empowering Canadian retailers with the ability to offer financing options to their customers,” said David Taylor, President and CEO, Pacific & Western Bank of Canada.
More banks should take note of how FinTech startups like Financeit can play the game in a way that benefits all stakeholders involved to inject a healthy dose of competition and innovation into mature, slow-moving industries.