Today FinanceIt, a company that brings financing options for consumer purchases to small and medium-sized businesses, announced that it has raised a $13 million Series A. The company declined to list its lead investor, but among the funding sources that were disclosed, TTV Capital was the largest participant.
FinanceIt is currently a Canada-only play. The outsized Series A is directly lined up to help the company expand to the United States, starting in 2014. That specific progression will wait until the conclusion of this calendar year.
As a company, FinanceIt offers a very interesting service: If you sell stuff, it will finance your customer’s purchase of said stuff, charging you nothing for the help. Naturally, FinanceIt charges a firm, but not eye-popping interest rate on the loans, making its coin from the consumer, and not the business.
For the small or medium-sized company that can’t afford, or simply doesn’t know how to set up its own financing programs, it could be a neat fit.
Consumers have their credit score checked inside your store, plans are displayed on a mobile device (No payments 6 months, etc), and are executed. The consumer goes further into debt, and the business is paid within a day. In, out, done. It’s slick, if almost dangerous in how it allows consumers to borrow up to $50,000 in a flash.
Interest rates for the consumer begin at 6.99%, and can run as high as 12.99% if your credit is suck. You can’t borrow less than $500. And yes, you can use the service to cover medical bills, provided that your medical installation is a FinanceIt customer.
Cheap credit fast for small businesses using a neat, if not terribly complex technology stack. Coming soon to the United States.
Top Image Credit: Flickr
Read more : FinanceIt Raises $13 Million To Bring Simple Purchase Financing Options To Small And Medium Businesses
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