Point of sale lending company Financeitteamed up with ServiceTitan this week to help Canadian home service contractors offer their homeowner clients immediate, integrated financing options.
“Alleviating home renovation debt and accelerating the home improvement business is an important focus for Financeit,” said the company’s Founder and CEO Michael Garrity. “Through this partnership, we’re providing ServiceTitan’s Canadian customers an integrated and efficient way to finance any project quickly and hassle free, beneficial to both homeowners and contractors.”
ServiceTitan is an all-in-one software solution for home services businesses such as residential HVAC, plumbing, and electrical. The company’s tools range from client scheduling and service dispatching to accounting, payroll, marketing, and more.
The Financeit integration, which taps Financeit’s payment plans, will help ServiceTitan’s contractor clients close larger deals more easily, as well as sell upgrades and higher-end products.
Financeit made its U.S. debut at FinovateFall 2013 in a joint demo with fellow Finovate alum FIS. In 2017, the company closed an investment round with Goldman Sachs that gave the financier a majority stake in the Toronto-based fintech.
Founded in 2011, Financeit has amassed more than 7,000 merchant partners and processed more than $3 billion (C$3.6 billion) in loan applications. The company has raised $38.4 million.
Point-of-sale financing provider Financeitcompleted an investment round today with existing shareholder Goldman Sachs. The round gives the firm a majority stake in the Toronto-based fintech.
Michael Garrity, CEO and President of Financeit, said the investment was a sign of Goldman Sachs’ “continued confidence in our leadership team, our business model, our platform, and the ability to grow our service.” He highlighted the recent integration with Centah, a SaaS workflow and lead management solutions provider, as an opportunity to expand into the home improvement industry “from lead generation to closing the sale.”
Financeit helps merchants increase closing rates and transaction sizes by enabling them to offer customers affordable monthly or bi-weekly payment plans. The cloud-based technology provides a fast and transparent application process for consumers, and helps merchants better manage cashflow, get paid sooner, and offer customers additional payment options. Financeit is free to use, and requires no merchant fees.
But Financeit adds a twist. “We service the transaction on both sides,” Garrity explained during his Finovate demo. “On one side we have a set of merchant partners who rely on us to power sales at the point-of-sale every day with our innovative solutions. On the other side, we have a set of financial institutions who rely on us to originate and to manage these loans on their behalf in their name and within their compliance framework.”
Financeit most recently demonstrated its technology at FinovateFall 2014, during which the company, in partnership with fellow Finovate alum FIS, launched its U.S.-compliant POS financing platform. Founded in 2011, Financeit was named to CB Insights’ Fintech 250 list in July and in June, the company received new funding capacity of $85 million from a “major Canadian life insurance company.” Since inception, the company has worked with more than 7,000 merchant partners in Canada and processed more than $2.5 billion in loan applications.
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.
Point-of-sale consumer financing company Financeitannounced $85 million in new funding capacity this week. The funds are made available to the Canada-based company through a $75 million renewable securitization facility and $10 million warehouse line of credit.
The warehouse line of credit comes from a major Canadian life insurance company. While Financeit declined to name the specific contributor, the company said it is a “major” player in the space. Financeit COO Casper Wong said, “We have a history of managing successful securitization programs, and we’re thrilled to be launching this new partnership.” He added, “We see this as the natural evolution of our growth and a major milestone. The company is a known leader in this space and we’re proud to be working with them.”
Financeit will use the new funds to “execute on its growth strategy.” Since acquiring TD Bank’s home improvement financing assets in September 2016, Financeit has experienced notable growth. The company’s founder Michael Garrity said last December that the deal had “transformed the business” and doubled its loan value and revenue. Because of this success, Garrity went on to state that he is open to considering more acquisitions.
Today,Financeitpulled in a $17 million venture funding round that was led by new investors Pritzker family business interests advised by The Pritzker Organization and DNS Capital. Existing investors also contributed. The new installment boosts the Canada-based company’s total funding to more than $38 million since it was established in 2011.
This comes less than a month after Financeit announced the acquisition of TD Bank Group’s indirect home improvement financing assets. Today’s installment will be used to fund the $339 million transaction, which included the purchase of more than 800 merchant dealer agreements. Once things have settled from the deal, Financeit will be servicing 45,000 existing TD consumer loans.
The secondary purpose of today’s round will be to “support the ongoing needs of the company as it continues its rapid growth.” In a press release, Michael Garrity, founder and CEO of Financeit, said, “As more merchants embrace the benefits of offering cloud and mobile-based financing options to their customers, Financeit expects to increase its sizable signature in this market. We continue to focus on innovation for our merchant partners and market growth through both organic tactics and acquisition.” The company has already increased its lending activity in the home improvement industry by almost 2X since 2015.