BlueVine sells its founding invoice factoring business to Canadian rival FundThrough
FundThrough, a Canadian invoice funding platform, has acquired the invoice factoring business of US-based fintech BlueVine.
“The acquisition fast tracks the company’s strategic focus on embedded finance and its expansion efforts in the US market, doubling the number of US clients that will rely on FundThrough to turn unpaid invoices into working capital,” FundThrough says.
All BlueVine invoice funding division employees will join FundThrough as part of the deal.
FundThrough was founded in 2014 and is based in Toronto. It says it has grown 1,071% over the past three years and nearly 300% since last year.
It processes more than $120 million in funding per month “while being extremely capital efficient”, it says. The company has raised $25 million since its inception.
“We are committed to helping small businesses grow and thrive – especially those who sell to large customers where long payment terms and a lack of financing options stand in the way of growing a business,” says Steven Uster, co-founder and CEO of FundThrough.
“BlueVine was one of our biggest competitors in the US market, and through this acquisition we can fulfil our mission on a much larger scale.”
According to FundThrough client data, small businesses wait 60 days on average for customers to pay their invoices. The company says that its platform, powered by artificial intelligence (AI), cuts the waiting time by 97%.
Also contributing to this accelerated access to cashflow are FundThrough’s key partnerships with companies such as Intuit and Enverus, it adds.
Founded in 2013, California-based BlueVine provides financial services to small and mid-sized businesses, such as business accounts, payments and credit lines. Factoring was BlueVine’s founding product.