Canadian invoice firm FundThrough raises $50m to support SMEs
Invoicing platform FundThrough has raised $50 million in new investment from Northleaf Capital Partners.
Using the new cash, FundThrough plans to serve more small and medium-sized enterprises (SMEs) in the US and Canada.
Based in Toronto, it aims to enable instant payment to SMEs and eliminate “the wait” associated with customer payment terms.
The $50 million is FundThrough’s fifth funding round. The firm has raised a total of $92 million since its establishment in 2014.
It last raised a $19 million debt financing round from Canadian merchant bank Intercap in 2018.
“This new investment will help small businesses eliminate the wait associated with outstanding customer invoices and boost their cash flow,” says FundThrough CEO, Steven Ulster.
“Together, we are working to level the playing field for small business owners and help them optimise their cash flow.”
A QuickBooks survey from 2019 shows that 61% of SMEs struggle with cash flow. It found 32% have had trouble paying wages, debts, or loans as a result.
The Canadian Federation of Independent Businesses (CFIB) states that 50% of SMEs in the country lost cash flow as their main issue.
“FundThough’s mission […] has taken on a heightened degree of importance in this challenging market environment,” says Michael Morris, managing director at Northleaf.