Behalf Teams Up with FinWise Bank to Boost Small Business Lending Options

Utah-based FinWise Bank, a subsidiary of All West Bancorp, is partnering with alternative small business lender Behalf. Together the companies hope to provide a broader range of financing solutions to a greater number of SME clients. “We founded Behalf in advocacy of small businesses and solving their working capital needs with innovative technology solutions is our central focus,” company co-founder and CEO Benjy Feinberg said. “Partnering with FinWise allows us to expand our product offering and serve more customers with financial tools that help them grow,” he added.

Behalf enables its merchant partners to offer business clients instant credit and flexible payment terms at the point of sale.  In fact, term flexibility is the key area of focus for Behalf, especially because it is a key pain point for many small businesses. By paying vendors directly “on behalf” of small businesses – as well as managing repayment and collections – Behalf gives small businesses the ability to match financing terms with the needs and timetable of their business, not the other way around. “Now she has the time to grow her business, and the credit to grow her business because she now has the terms that she needs,” Feinberg said, explaining how the platform worked for small business owners during his company’s FinovateFall demo. At the same time, he added, vendors enjoy working with Behalf because they get paid on day one as opposed to day 29 or day 89.

Behalf produces credit decisions in real-time. Business clients provide personal and business addresses, as well as a social security number, and Behalf tells them what size credit line the business qualifies for. Businesses can use the line of credit for both online and offline purchases, and the size of the client’s available line of credit increases each time the client pays off Behalf. Rather than negotiating terms with multiple vendors, Behalf Director of Product Andrew Abshere explained, the Behalf client now has flexible terms with a single payee. “She can take these terms with her anywhere, to any vendor,” Abshere said. He then showed how clients set up vendor payments directly through the Behalf platform, adjust the length and frequency of repayment, and add bank details to enable automatic repayment. Once the bank information is authorized, Behalf contacts the client’s vendors by e-mail, notifying them that Behalf will be paying “on behalf” of the client. The process takes less than five minutes.

David Tillis, VP of Specialty Lending at FinWise Bank praised Behalf’s “talented people, technology, and acquisition channel” which he said would “change the landscape of business lending.” A self-described, “financial tech bank with a community heart,” FinWise Bank was founded in 2000 and is headquartered in Sandy, Utah. Also known as Utah Community Bank, FinWise Bank has teamed up with fintechs in the lending space before, most recently partnering with direct loan provider, LendingPoint, in March

Founded in 2011 and headquartered in New York City, Behalf demonstrated its vendor platform at FinovateFall 2014. A member of CB Insights’ Fintech 250, Behalf has raised $156 million in funding, including a $27 million Series C a year ago this month. MissionOG, Spark Capital, and Viola Growth are among the company’s investors.

Finovate Alumni News

On Finovate.com

  • Behalf Teams Up with FinWise Bank to Boost Small Business Lending Options
  • Samsung to Power Biometric Authentication Pilot for Bank of America
  • ACH Alert’s Fraud Prevention HQ Empowers Account Holders to Stop Suspicious Transactions

Around the web

  • PayPal unveils two new innovation labs in India.
  • Albany, New York-based SEFCU chooses Fiserv as technology partner.
  • FICO selects Amazon Web Services as its cloud provider.
  • SF Chronicle profiles mortgagetech innovator, Unison, in feature on downpayment assistance for Bay Area homebuyers. Join them next month in New York for FinovateFall.
  • GoBankingRates highlights AutoGravity, M1 Finance, Venmo, Mint in list of best personal finance apps
  • ID.me hires Julie Filion as Chief Marketing Officer.
  • eMoney Advisor moving into Rhode Island offices, expects to hire 100 by 2020.
  • Flywire Offers Summertime Deal for International Tuition Payments with Mastercard.
  • StreetShares adds Heather Tuason as new Chief Product Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.

Algomi

AutoGravity

Avalara

Behalf

Betterment

Blend

Chain

Coinbase

Credit Karma

Currencycloud

CurrencyFair

Fenergo

Financeit

Gusto (formerly ZenPayroll)

Juvo

Kabbage

Kensho

Kreditech

Klarna

LendUp

Moneytree

PayNearMe

Payoneer

Personal Capital

Plaid

Quantopian

Quovo

Revolut

Ripple Labs

Roostify

Signifyd

SocietyOne

Socure

Tink

Token

Tradeshift

Transferwise

TrueAccord

Trulioo

VATBox

Wealthfront

Xignite

Zooz

Zopa

Finovate Alumni News

On Finovate.com

  • Payworks Unveils Next Generation Payment Gateway, Pulse
  • Check out this week’s FinDEVr APIntelligence
  • Jumio Raises $15 Million from its New Owner, Centana Growth Partners

Around the web

  • Currency Cloud partners with Arkea Banking Services to provide faster payments and better reconciliation. Join Currency Cloud in New York next week for FinovateFall 2016.
  • PYMNTS.com looks at Behalf and its recent $27 million Series C.
  • Bluefin Payment Systems unveils PAX devices for PCI-validated, point-to-point encryption (P2PE).
  • Uber and Visa team up on local offers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Behalf Raises $27 Million

Behalf_homepage_August2016

In a round led by new investor Viola Growth, small business financing innovator Behalf has raised $27 million in Series C funding. The investment will support the company’s increased investment in business development as well as further innovation in its purchase-financing platform.

Calling small businesses the “unsung heroes of the U.S. economy,” Behalf CEO and co-founder Benjy Feinberg pointed to his company’s platform as a solution to help them get the necessary financing to grow. “Behalf has a simple solution, driven by data and technology, that allows us to provide well-priced and flexible credit tools to help SMBs and their suppliers grow profitably,” he said. Also participating in the round were previous investors Sequoia Capital, Spark Capital, MissionOG, and Vintage. The Series C takes Behalf’s total capital to $156 million.

Behalf_stage_FF2014c

CEO Benjy Feinberg presented Behalf’s Vendor Platform at FinovateFall 2014.

Behalf pays vendors directly on their small client’s behalf—hence, the name. This approach, which relies on Behalf’s proprietary credit scoring technology, helps bring short-term purchase financing to small businesses faster and more efficiently: Small businesses can buy up to $50,000 in inventory on the Behalf platform, with terms ranging from $10 to $30 for every $1,000 per month borrowed.

Founded in 2011 and headquartered in New York City, Behalf demonstrated its Vendor Platform at FinovateFall 2014. The company has doubled revenues every six months since inception, and recently added Jorgen Bocklage as CFO. Bocklage founded 118 118 Money and is a former VP of finance at Dashlane, a fellow Finovate alum.

Harel Beit-On, Viola Growth founder and general partner who will be joining the Behalf board of directors, praised the company’s team and its growth, saying the company had targeted a “fast growing market” that was “valued by analysts in the trillions, that is underserved by banks.” Behalf says over the next twelve months it will be adding talent in a variety of roles ranging from marketing to engineering.

Finovate Alumni News

On Finovate.com

  • Behalf Raises $27 Million in New Funding
  • Backbase Partners with Entersekt to Deliver Authentication Technology
  • EyeVerify Teams Up with BioConnect to Boost Payment Security.

Around the web

  • PittsburghPost-Gazette feature on local fintech incubator SteelBridge Laboratories quotes Om Kundu, CEO of InSpirAVE. See InSpirAVE at FinovateFall in New York next week.
  • Massachusetts-based Randolph Savings Bank re-ups with Fiserv for front- and back-office technology.
  • Wipro announces partnership with Stibo Systems to offer Master Data Management (MDM) solutions.
  • PYMNTS.com looks at TransferWise and its growing independence from bank partners.
  • Jack Henry & Associates Awarded by Aite Group for Core Processing.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Behalf Closes $119 Million Series B

Behalf_homepage_July2015

Check out the big raise for Behalf.

Alternative small-business financier Behalf announced a $119 million investment that takes the company’s total capital to $129 million. The Series B round was led by MissionOG, an early to growth-stage VC firm, and the new funding will go toward adding staff, as well as providing more and larger working capital lines to SMEs.

Joining MissionOG in the Series B were Maverick Ventures, Sequoia Capital, Spark Capital, and Victory Park Capital. Victory Park Capital provided a credit facility as well as an equity contribution.

Behalf also announced the opening of new headquarters in New York City.

Behalf_stage_FF2014

From left: Behalf VP of Product Meeka Metzger; Director of Product, Andrew Abshere; and founder and CEO Benjy Feinberg presented the Behalf’s Vendor Platform at FinovateFall 2014 in New York.

Behalf enables small businesses to buy up to a $50,000 inventory. The company directly pays vendors for the small business, and the business pays Behalf back on terms ranging from $10-$30 per $1,000 per month. Behalf uses its proprietary credit-scoring technology to approve as many as 40% of its applicants, and can provide credit decisions in less than four minutes.

Merchants appreciate being able to pay vendors on whatever terms their vendors demand, and repay Behalf on terms that may be more flexible and favorable to them.

The company began 2015 with a new collaboration involving MasterCard and Comdata, to provide financing options for small businesses using MasterCard. In February, Behalf CEO Benjy Feinberg was interviewed by Ideamensch, and in March, the company was a finalist in the “Best B2B Innovation” category at the 2015 PYMNTS Innovator Awards 2015. Founded in 2011 and based in New York City, Behalf demonstrated its Vendor Platform at its Finovate debut, FinovateFall 2014.

Finovate Alumni News

On Finovate.com

  • “Behalf Closes $119 Million Series D”
  • “Neon Release Adds Touch ID and Enhanced Notifications to Oink 2.0″
  • “ShopKeep Rings Up $60 Million Investment”

Around the web

  • Citibank India and MasterCard launch digital wallet, Citi MasterPass, in India.
  • This is Money features TransferWise in a look at the lack of transparency in exchange fees.
  • LoanNow earns #4 spot in Orange County Business Journal’s “Best Places to Work in Orange County 2015” roster.
  • PYMNTS looks at how PayPal’s Paydiant is powering Subway’s mobile-payments app.
  • Payments Views talks with Doug Yeager, HCE inventor and CEO of SimplyTapp, in its latest podcast.
  • Expensify launches New Investment Fund, Expensify Ventures, for fintech startups.
  • American Banker considers how banks are using startups such as Social Money and Qapital to bolster their offerings.
  • Dashlane launches One-Tap Password Changer for Apple Watch and iPhone.
  • John Hancock Retirement Plan Services now offers Morningstar’s HelloWallet financial wellness tool to plan-sponsors on its Total Retirement Solution platform.
  • Arroweye Solutions to provide EMV Credit and Debit Cards for Mountain America Credit Union.
  • TechCrunch: Betterment tops 100,000 customers and $2.5 billion AUM.
  • Taulia reports record revenue and ten customer wins for Q2 2015.
  • Mobile Payments Today looks at InComm’s drive to bring open-loop prepaid to mobile wallets.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

 

Behalf Announces Collaboration with MasterCard and Comdata

Thumbnail image for BehalfLogo_FF2014.jpg

Just a few days ago we hinted at some “big news” coming soon from small business financing and vendor payment specialist, Behalf.

The wait is over. In a collaboration with MasterCard and Comdata, Behalf will offer SMBs alternative payment terms for merchants that accept MasterCard. Behalf will take advantage of MasterCard’s Virtual Card platform, while Comdata will provide payment processing.

“Our partnership with Comdata, coupled with MasterCard’s reach, will dramatically improve the usability, scale, and security of what is already a great product,” said Benjy Feinberg, Behalf founder and CEO. “We can’t wait to bring MasterCard-accepting merchants onto our vendor platform, making it easier for small businesses to purchase the goods, services, and supplies they need.”
Behalf_homepage2.jpg
Behalf’s technology helps SMBs better manage cash flow and pay vendors faster. The company lends up to $10,000 for up to 120 days, enabling small business owners to pay vendors “on Day One” and repay Behalf on terms that work for them. And with the new partnership with MasterCard, added Feinberg, SMBs using Behalf will be “earning cash incentives just by paying their bills.” Vendors benefit by receiving prompter payment, dealing with fewer collections issues, and enjoying better cash flow, as well.
Founded in 2011 and based in New York City, Behalf made its Finovate debut at the New York conference last fall, where it demonstrated its vendor platform. Get to know more about Behalf in our latest Finovate Debut feature.

Alumni News– January 8, 2015

  • Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Finovate-F-Logo.jpgForbes series on thought leaders in business and technology features Ayasdi CEO and co-founder, Gurjeet Singh.
  • defi SOLUTIONS announces its Loan Origination System is now integrated with Dealertrack’s eDocs.
  • PrivatBank upgrades its Privat24 business account management mobile app.
  • Service Credit Union hires Insuritas to open and manage turnkey insurance solution.
  • Sonavation unveils IDKey M-Series fingerprint scanner for storing passwords, data.
  • WSJ blog post on banks and mobile payments features quote from Paul Thomalla, SVP and managing director EMA at ACI Worldwide.
  • Loop announces two new OEM partners, XPAL Power and Trident Case.
  • All Day features Dynamics interactive payment cards in its review of the “coolest gadgets from CES 2015.”
  • Radius reflects on its collaboration with big data analytics company, BIME.
  • Dealbook looks at the cooperative side of fintech innovation with Behalf, Nymi, and Dynamics.
  • CSI globalVCard announces availability of the Android version of its mobile payment.
  • EZBOB boosts its maximum loan size from £50,000 to £120,000, and extends its maximum term length from 12 to 15 months.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.