American startup Fundbox nabs $17.5M in funding to help small businesses clear invoices within a day
Lending startup Fundbox has emerged from stealth today to start helping small and medium-sized businesses (SMBs) pay for their invoices fast. The company has also raised $17.5 million in funding, according to VentureBeat.
Fundbox co-founder Eyal Shinar commented: "It's fixing the small-business economy, which is pretty important."
Khosla Ventures was the lead investor in the said round. Other investors such as SV Angel, former Thomson Reuters exec Tom Glocer, and former Citigroup chief Vikram Pandit also contributed to the financing, the report detailed.
Fundbox wants to help business-to-business (B2B) companies address the problem of cash-flow gap. Most of these firms have invoices that take two to three months to be cleared by their customers. Fundbox lends money to these companies to help clear chosen invoices within just one day. The startup, of course, assesses the recipient of the loan first, including the risk of the transaction. This service helps SMBs continue their operation while waiting for the actual payment from the customers, TechCrunch explained.