Financeit has announced that they are bringing their point-of-sale consumer financing platform for small businesses to the U.S.
The Ontario, Canada-based company provides small businesses the ability to offer financing solutions formerly reserved for big-box retailers.
With Financeit, businesses can offer loan applications to their consumers directly from the point-of-sale. The consumer fills out an online application and can get approval on the spot for loans ranging from $500 to as much as $30,000. Payments on the loan are made directly to the lender, meaning there is little risk to the merchant, even if the customer defaults. The service is completely free to the merchant, so businesses can offer financing to their customers without having to build costly in-house options. Over 3500 merchants are already using Financeit in Canada, with over $715 million in loan applications having been processed.
“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.
To assist their expansion into the U.S., Financeit has partnered with FIS, the world’s largest provider of banking and payments technology solutions. FIS last year provided Financeit with a $13 million series A, and will assist going forward by providing access to its banking network and guidance on navigating lending regulations in the U.S.
“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.
The U.S. launch will begin in California, New York, and Pennsylvania before moving on to other states in 2014 and early 2015.