Online financier Behalf lands $150m in debt financing


Behalf, a provider of working capital solutions for small and medium-sized businesses, announced today that it has secured $150m in debt financing.

The funding was led by a private investment fund managed by Soros Fund Management, with Viola Credit also participating.

Founded in 2012, Behalf is a financing provider that facilitates commerce between business to business vendors and their small and medium business customers. Using data and technology, the New York-headquartered company allows vendor partners to offer business customers instant credit and flexible payment terms at the point of sale. Once qualified, Behalf customers can use their credit facility to fund purchases with virtually any vendor, including businesses on the MasterCard network.

“We believe Behalf’s technology and acquisition channel will change the landscape of business lending,” said Uri Galai, partner at Viola Credit. “Behalf understands that the buyer-seller relationship has changed, and is providing an unparalleled solution to the increased demands from vendors and their customers seeking financing. We are excited to join Behalf in its next stage of growth.”

The new funding will allow Behalf to expand its fast-growing e-commerce B2B financing platform and enhance its ability to provide the ‘best business terms to customers’, in a fraction of the time of a traditional business lender according to founder and CEO Benjy Feinberg.

Behalf claims its solution help sellers implement or expand e-commerce capabilities, close more deals, increase average order value, and de-risk themselves from the collections process. While their small business customers get increased purchasing power and more time to pay.

Last year, the company partnered with FinWise Bank, a Utah-chartered bank located in Sandy, Utah, to expand its business credit offering.

Earlier this year, online lending platform BlueVine doubled the size of its invoice factoring service to up to $5m. The company also increased its credit product from $150k up to $200k, to further support fast growing SMEs.

Prior to this, Caple, a European provider of alternative credit for small to medium-sized companies, received backing from BNP Paribas. The asset manager has purchased a 10 per cent stake in the business through its incubation fund.

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