FundThrough, a Canadian financial technology platform that provides invoice payments services to businesses, has announced that it has acquired the invoice factoring business of U.S.-based financial technology company BlueVine.
FundThrough says the acquisition fast tracks its strategic focus on embedded finance as well as its expansion efforts in the U.S. market, doubling the number of U.S. clients that will rely on FundThrough to turn unpaid invoices into working capital. In addition, the acquisition is expected to more than double the number of funding transactions that FundThrough makes annually and establish the company as the largest AI-powered invoice funding platform in North America, currently processing over US$120 million a month.
“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,” said Steven Uster, co-founder and chief executive officer 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.”
According to FundThrough client data, small businesses wait 60 days on average for customers to pay their invoices. FundThrough addresses this issue through its AI-powered funding platform, which generates automated offers for a smooth onboarding and funding experience. Through its technology, along with key partnerships with companies such as Intuit and Enverus, FundThrough says it cuts that waiting time by 97 percent to accelerate access to cash flow for small businesses.
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.
As part of the transaction, all BlueVine invoice funding division employees are joining FundThrough. The additional scale from new channel partnerships and relationships acquired through BlueVine, including all BlueVine factoring partners who have now transitioned to FundThrough, will help FundThrough embed its funding platform 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, explains FundThrough.
“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 Lifsthiz, co-founder and chief executive officer 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.”