The San Francisco-based startup is both a lender and a payments processor for small businesses. It uses artificial intelligence to assess the creditworthiness of potential borrowers, collecting data from other software and services used by the business, as well as their bank accounts.
The platform also facilitates quick payments to the borrower’s suppliers. “We are focused on unlocking the working capital that’s tied up in unpaid invoices,” Chief Operating Officer Prashant Fuloria said. By using Fundbox, “the seller gets paid right away,” he added.
Fundbox plans to use the fresh funding to hire employees in its engineering team and to expand the number of platforms it works with. The company will use the credit facility to lend directly to customers, Fuloria said.
The business-to-business fintech lending industry has piqued the interest of entrepreneurs and investors in recent months. Other players include fast-growing Brex Inc., which offers quick credit decisions and credit cards for startups, also using non-traditional metrics. Jack Dorsey’s Square Inc., too, lends money to its small business…