Financeit, which provides a platform that enables businesses to offer consumer financing to their customers from any device, has closed a $35 million renewable purchase facility and a $5 million warehouse line facility with Pacific & Western Bank of Canada.
“Financeit is focused on creating the 3rd payment option so businesses can offer financing in addition to accepting cash and credit. The purpose of this facility is to enhance our existing lending programs to offer our merchant Partners the best experience possible,” said Casper Wong, COO and Co-Founder, Financeit. “Pacific & Western Bank is a great partner for us as we're aligned on long term growth objectives.”
Currently, Financeit has more than 3,500 small-to-medium sized businesses offering consumer financing on big-ticket purchases ranging from $500 to $100,000. As part of the agreement, Pacific & Western Bank will be allocating up to $40 million in loan purchase and warehouse capacity for the Toronto-based group to offer point of sale consumer financing through their established network of Canadian businesses.
There are more than 19 million small to medium sized business in North America (approximately 1.8 million in Canada and 18 million in the US). With point of sale financing representing a multi-billion dollar market in Canada and the US annually, the industry has traditionally focused largely on big box retailers as well as large vehicle dealers and manufacturers. Financeit changes this dynamic by enabling smaller merchants to offer innovative and compelling customer financing anywhere, anytime. The Financeit platform gives these merchants the tools they need to compete with larger retailers - particularly when selling big-ticket items.
“We recognize the significant potential in Financeit’s platform and the relatively untapped point of sale consumer financing market in Canada,” said David Taylor, President & CEO of Pacific & Western Bank of Canada. “We look forward to empowering retailers across Canada to offer financing options to their customers.”
Financeit is a platform that makes it easy for businesses to boost sales by offering consumer financing to their customers from any device. The company brings point of sale financing tools to main street merchants to increase close rates and transaction size - a proven strategy previously reserved for big box retailers. Since launching in 2011, Financeit has signed up over 3,500 retail, vehicle, home improvement and healthcare businesses who have processed more than $500 million in loans.
Pacific & Western Bank of Canada, a Canadian Schedule I bank, is a branchless financial institution that raises deposits through a network of deposit brokers located across Canada.