Toronto based small-business lender FundThrough just secured a $24.6 million investment lead by Scale Up Ventures. FundThrough’s unique offering gives businesses a cash advance on the value of their unpaid invoices. When a companies can’t wait up to 90 days for payment, FundThrough will pay them within 24 hours.
Since launching in 2014, FunThrough has lent $50 million to hundreds of businesses. This is the second round of funding for the company, with the first in early 2015 at $2.2 million.
The Globe and Mail reported that of the $24.6-million, FundThrough will receive $4.6 million of equity and access to an additional $20 million in loan capital. The new funds will be used to hire more staff, a help build out technology including improving existing tools, overall user experience, and to boost partnerships with cloud-accounting companies.
Scale Up Ventures is a $75-million venture capital firm launched in 2016, backed by private industry including three undisclosed Canadian banks plus a $25-million commitment from the Ontario government.