The Credit Junction has bagged $23m in an investment from Century Equity Partners, coming just months after a credit facility from MidCap.
The company will use this new wave of equity to enhance its ability to offer financing solutions to Supply Chain America, as well as to commercialise its data and risk analytics platform.
Credit Junction, which launched in 2015, uses data intelligence and traditional credit metrics to partner with businesses owners to support their financing needs. Businesses are judged on their accounts receivable, inventory and equipment in order to create personalised credit reviews, with the business collateral being used to back up the loan.
The company offers credit lines of between $500,000 and $7.5m and typically targets supplier, distributor and manufacturer SMBs that have revenues between $5m and $50m. Annual interest rates for loans are 14 to 19 per cent and terms range from six months to 24.
The Credit Junction CEO and founder Michael Finkelstein said, “Century shares our passion for leveraging technology to meet market needs and has a proven track record of helping companies accelerate their businesses. We are excited to utilize their deep experience and industry knowledge as we look to grow both our lending and data analytics businesses.”
Earlier in the year, the company collected $150m through a credit facility from MidCap Financial. The funds were deployed to help Credit Junction with its expansion efforts across the US.
Last month, fellow SME lending platform SimpleFinance closed its own funding round, scoring $15m to enhance its platform and lending portfolio. The company received the funding from SBI Investments.
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