This funding round has been achieved in addition to a USD 150 million credit facility, according to Business Insider. Fundbox focuses on small- and medium-sized business (SMB) lending as well as business-to-business (B2B) payments.
The fintech integrates with third-party data sources like accounting software or invoice systems to underwrite loans for SMBs, allowing it to get a better view of its borrowers finances. It makes a credit decision in under a minute, which helps streamline the loan application process for SMBs.
Fundbox also wants to move further into B2B payments. The B2B payments market has seen less innovation than the business-to-consumer (B2C) payments market, which is making it harder for businesses to conduct payments: over 50% of B2B payments are still being made using paper checks, for example, the company says. By moving further into the space, Fundbox is likely aiming to enhance and overhaul the infrastructure for B2B payments, which will likely see high demand from businesses.
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