Financeit, a platform that enables businesses to offer consumer financing to their customers from any device, has secured $13 million USD in growth capital.
The Series A round was led by a number of investors in the banking, payment technology and financial industries. Financeit will use the funds to implement an aggressive expansion of its sales financing solutions into the U.S in 2014.
Point of sale financing represents a $500 billion market in North America annually, yet the industry has traditionally focused largely on big box retailers as well as large vehicle merchants and manufacturers. Financeit changes this dynamic by enabling smaller merchants to offer innovative and compelling customer financing anywhere, anytime. The Financeit platform gives merchants the tools they need to compete with large retailers - particularly when selling big-ticket items.
"The Financeit platform is a game-changing strategy for small businesses, allowing them to punch above their weight class by offering point of sale financing to grow their business in unprecedented ways," said Michael Garrity, CEO and co-founder at Financeit. "Since launching in Canada in 2011, we've had nearly 3,000 merchant partners process more than $500M in loan applications through our market-leading platform."
This group of investors brings strategic relationships that will facilitate Financeit's expansion into the U.S. market. Investors participating in the round included industry leading financial technology venture investors TTV Capital, Inter-Atlantic Group, and Second City Capital.
Small businesses are in need of an efficient, affordable way to offer payment plans to their customers," said Mark Johnson,Partner at TTV Capital. "We are investing in Financeit to ensure that smaller merchants across North America have access to POS financing to drive their business growth. The platform's success in Canada proves that the model works and that demand for these solutions is exceptionally high."
The Financeit point of sale financing platform leverages the latest mobile and cloud-based technologies to simplify the loan application process for merchant partners. Instead of requiring a shopper to fill out lengthy paperwork to apply for financing, a merchant can simply use a mobile app in-store or in-field and instantly capture all the needed information by photographing the customer driver's license with a tablet or smartphone. As a result, customer financing applications can be processed in minutes.
"This financing round gives us the capital we need to bring Financeit to Main Street merchants in both Canada and the US," said Garrity.