Toronto-based Financeit, which provides small businesses with a consumer financing platform has raised US$13 million in a Series A round. Investors include TTV Capital, Inter-Atlantic Group and Second City Capital. Michael Garrity, CEO of Financeit, told peHUB that the company raised US$3 million in angel funding from an undisclosed institutional source prior to the Series A round. The Series A funding will be used to help the Canadian company — previously known as CommunityLend — to expand into the U.S. market in 2014.
Financeit Raises $13M to Bring Point of Sales Financing to Small Businesses
Investment will expand Financeit into $500B/year U.S. market in 2014, delivering the tools Main Street merchants need to compete
Toronto, Canada, <November 19, 2013> – Financeit <www.financeitpos.com>, a platform that enables small businesses to offer consumer financing, 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 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.
“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,” 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.”
Investors participating in the round included industry leading financial technology venture investors TTV Capital, Inter-Atlantic Group, and Second City Capital. This group brings with it a strategic relationship that will facilitate Financeit’s expansion into the U.S.
“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.”
“This financing round gives us the capital we need to bring Financeit to Main Street merchants in both Canada and the US,” said Garrity.
To find out more about Financeit and stay up to date on future updates visit www.financeitPOS.com.
Financeit is a platform that makes it easy for businesses to boost sales by offering consumer financing to their customers from any device. The company brings point of sale financing tools to main street merchants to increase close rates and transaction size – a proven strategy previously reserved for big box retailers. Since launching in 2011, Financeit has signed up over 2,800 retail, vehicle, home improvement and healthcare businesses who have processed more than $500 million in loans.
TTV Capital is an Atlanta based venture fund specializing in technology-enabled financial services companies with sustainable business models and innovative products. TTV Capital invests in technology-enabled financial services businesses that serve the varied needs of the financial services sector and the consumers of financial products. Their team of experienced technology and financial services professionals has more than 100 years of venture capital and highly relevant industry operating expertise acquired across three decades and multiple economic cycles. For more information visit www.ttvcapital.com.
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