Financeit has raised a $13 million Series A round.
The Toronto-based company, which built a platform that enables small businesses to offer consumer financing, raised the funds from several investors, including TTV Capital, Inter-Atlantic Group, and Second City Capital. Financeit says that it will use the funds “to implement an aggressive expansion of its sales financing solutions” into the US next year.
Point of sale financing represents a $500 billion market in North America annually according to the Canadian company, but it believes the industry has traditionally focused largely on big box retailers and vehicle merchants and manufacturers. Financeit says it changes this dynamic by enabling smaller merchants to offer innovative and compelling customer financing anywhere, anytime.
“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,” says Michael Garrity, CEO and cofounder at Financeit.
The Financeit point of sale financing platform leverages 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 use a mobile app in-store or in-field and 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, according to the company.
“This financing round gives us the capital we need to bring Financeit to Main Street merchants in both Canada and the US,” added Garrity.
Since launching in Canada in 2011, Financeit has had 3,000 merchant partners process more than $500 million in loan applications through its platform.