After rebranding in September from Merchant Cash and Capital to BizFi, the firm announced that they have raised $65 million in funding from Metropolitan Equity Partners. A lender to small and medium businesses (SMB) since 2005, BizFi became a marketplace lender this year, having launched a loan aggregation platform allowing borrowers to compare rates from multiple lending partners. With the name change in September, BizFi also launched a white label solution for firms to offer online lending to its customers.
According to BizFi, the firm has lent more than $1.3 billion in financing since its launch in 2005. The firm added that since launching its marketplace aggregation platform, it has realized 72% year-over-year growth in gross originations. Loan partners include many of the largest SMB online loan providers such as OnDeck Capital, Kabbage and Funding Circle.
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With the new capital, BizFi plans on expanding its funding programs, increase speed of the loan application process, and raise awareness of its product to the SMB community. For Metropolitan, the funding continues its involvement in the fintech space, of which it has committed over $100 million during the year to firms such as JH Capital Group, Debt Away, New Credit America and PledgeCap.
Commenting on the funding, Paul Lisiak, Managing Partner of Metropolitan Equity Partners, stated, “Metropolitan believes that the future of small business lending is being built by Bizfi. Their aggregation and direct lending marketplace is disrupting the fast growing FinTech industry. Our new investment is the result of the impressive performance we have directly experienced as a lender and participant in the company’s financing products over the past three years. In the rapidly evolving FinTech space, Bizfi’s management team has elegantly expanded their product offerings to create a platform that holistically meets the dynamic funding needs of small businesses. We look forward to being a part of Bizfi as they further solidify their position as a leader in the financial technology space.”