TORONTO — Financeit, a point-of-sale consumer financing platform for small businesses, announced that it has launched in the United States. The company said its cloud-based application fills a gap in the existing lending market, as smaller businesses including contractors have traditionally not had access to the same low interest purchase financing options as big box stores.
Financeit noted that it has already processed more than $715 million in customer loan applications across more than 3,500 companies in Canada before its U.S. launch.
“Small and medium sized businesses are now empowered to significantly increase sales through tools and solutions once totally out of their reach,” said Michael Garrity, CEO and co-founder of Financeit. “We work very closely with our partners, who are generally main street merchants in retail, home improvement, and health care, to help them to advance their sales by giving their customers fair and fast payment plans right at the point of sale.”
Financeit also announced that it has partnered with FIS™, one of the world’s largest providers of banking and payments technology solutions, to facilitate its expansion into the U.S. market. FIS will assist with compliance, distribution, and account management, allowing Financeit to capitalize on its banking network in the United States.
“We were impressed with Financeit’s unique point-of-sale financing solution for banks and saw it as a great way to address one of the biggest challenges we see in the financial services industry,” said Ronny Chapman, SVP, general manager of North American Lending, FIS. “FIS’ lending solutions are used to better market, sell, process, and close loans, across all distribution channels and Financeit will help us to further serve our clients across North America.”
From any web-based device, businesses can sign up with Financeit and start offering financing to their customers the next day. Customers making a big ticket purchase, from $500 to as much as $30,000, can apply for a Financeit loan through an online application and get approval on the spot. Once a loan is approved, the cash is sent to the merchant and the customer is provided with a monthly payment plan paid directly to the lender. Unlike a credit card’s merchant fees, the use of Financeit is at no cost to the merchant.
Since Financeit manages the relationship between the customer and lender, there’s minimal risk for merchants, even if a customer defaults on a payment.
Financeit said it will be initially available in California, New York, and Pennsylvania with a steady rollout expected in other states through 2014 and early 2015. Visit www.financeit.io to find out more about local availability and to sign up for updates.
Publication date: 10/13/2014