FundThrough, an invoice payment fintech platform, this week announced the acquisition of BlueVine’s invoice factoring business. The company said the acquisition fast tracks the company’s strategic focus on embedded finance and its expansion efforts in the U.S. market, doubling the number of U.S. clients that will rely on FundThrough. All BlueVine invoice funding division employees are joining FundThrough as part of the transaction.
Founded in 2014, FundThrough said it now provides more than USD$120 million dollars in funding per month. It has raised $25 million dollars in equity since its inception. The acquisition is expected to more than double the annual number of funding transactions.
Cash flow is the number one problem facing small businesses. According to QuickBooks data, 81 per cent of surveyed businesses said their customers had been late on their payments more often in 2021 compared to previous years, and 89 per cent said late payments limit their growth. According to FundThrough client data, small businesses wait 60 days on average for customers to pay their invoices.
FundThrough addresses this through its AI-powered funding platform, which generates automated offers. Through its technology, along with key partnerships with companies such as Intuit and Enverus, FundThrough cuts that waiting time by 97 per cent to accelerate access to cash flow for small businesses.
“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 U.S. market, and through this acquisition, we can fulfill our mission on a much larger scale. We look forward to providing BlueVine’s invoice factoring clients with the same responsive, personalized customer service and seamless funding experience that FundThrough’s existing clients rely on and appreciate.”
In a statement, the Canadian company said the additional scale from new channel partnerships and relationships acquired through BlueVine — including all factoring partners, who have now transitioned to FundThrough — will fuel FundThrough’s goal of being included within the workflow of B2B marketplaces, ecosystems, and apps where suppliers can request instant payment of their large customer invoices without leaving the workflow. This gives suppliers more opportunities to boost their cash flow, and levels the playing field for small businesses selling to large, powerful customers who often dictate long payment terms.
Based in Redwood, California, BlueVine provides financial services to small and mid-sized businesses. The company addresses the banking and working capital needs of business owners with a suite of products including BlueVine Business Checking, Payments, and Line of Credit. Factoring was BlueVine’s founding product.
“Since launching BlueVine, we’ve been focused on the financial needs of small businesses and are very proud of what we’ve been able to accomplish. As we evolve our products and services, we continuously examine how we can better serve our customers at scale,” says Eyal Lifshitz, co-founder and CEO of BlueVine. “We determined that FundThrough is perfectly positioned to serve our factoring clients with the care and individual attention they need and deserve. Our factoring clients will be in great hands with FundThrough.”