Working capital is a financial necessity for small and medium businesses (SMBs). Often, many business owners use credit cards or other high-interest loans to pay for needed goods and services. Behalf, an alternative lending source, just received additional venture financing as well as an expansion of its in-purchase financing to merchants and their SMB customers.
Most SMBs were hit hard during the pandemic and those that survived will benefit from more attractive lending options that can be integrated within online checkout pages.
The following excerpt from a Yahoo Finance article reports more on the topic:
Behalf, a provider of In-Purchase Financing solutions for B2B sellers and buyers, today announced $19 million in new venture financing. The round was led by existing investors MissionOG, Viola Growth, Viola Credit and Vintage Investment Partners. New investors Migdal Insurance and La Maison Partners are also participating in the round.
In addition, Behalf announced the creation of a new debt facility totaling up to $100 million, provided by funds managed by Ares Management Corporation (“Ares”). The capital raised will enable Behalf to expand the availability of In-Purchase Financing to a broader array of B2B merchants and their SMB customers, while continuing to extend the capabilities of its industry-leading platform.
“The B2B eCommerce market is ripe for transformation. Merchants are recognizing the opportunity to drive new revenue by deploying In-Purchase Financing,” said Rob Rosenblatt, CEO of Behalf. “At the same time, small and mid-sized businesses (SMBs) need access to affordable financing options — an evergreen challenge exacerbated during COVID. Even as the U.S. economy is improving, SMBs continue to seek financial assistance to purchase critical supplies, inventory and equipment. Oftentimes they lack the requisite spend capacity on their personal or business credit cards. By offering In-Purchase Financing with flexible terms, B2B merchants can increase average order size by as much as 50-80 percent while reducing their risk, improving cash flow and driving operational efficiencies.”
Overview by Raymond Pucci, Director, Merchant Services, at Mercator Advisory Group