Toronto-based FundThrough, which allows businesses to get their invoices paid within 24 hours, announced $24.6 million in a second round of financing.
The company, which plans to use the funding to expand the business, last raised funding in March 2015, when it raised $2.2 million. The second round of financing was led by ScaleUP Ventures, with participation from Hedgewood, Klister Credit Corp, and OnWave Ventures. FundThrough will receive $4.6 million of equity and access to an additional $20 million in loan capital as part of the transaction.
“We have already funded more almost $50 million of invoices from small business users, so we know we have built a solution that makes their lives easier and allows them to control their cash flow,” said Steven Uster, co-founder and CEO of FundThrough. “Our investors recognize the success of our solution and now our goal is to grow our team so we can help even more business owners.”
Fundthrough works by connecting to a business owners’ accounting software and bank information, and automatically assigning a funding limit in just a few hours. Once connected, business owners can fund invoices simply by clicking a button, and can expect the funds arrive in the business owner’s bank account within 24 hours. Because the service allows business owners to eliminate the wait associated with invoice payment terms, entrepreneurs can instantly use their money to run their businesses.
“With more than 85 per cent of its customers being repeat users, FundThrough has quickly established itself as a trusted solution for small businesses that gives them easy access to the capital they need to grow,” said Kent Thexton, general partner at ScaleUP Ventures. “FundThrough is processing millions of dollars of invoices each month – the opportunity for rapid expansion is clear.”