Fundbox CEO On Landing Growth Capital, And Fixing The Net Terms Economy

The U.S. economy is reopening bit by bit, and consumer-facing Main Street small- to medium-sized businesses (SMBs) wait with bated breath to see if top lines and cash flows will return.

Stimulus payments have helped, perhaps just a bit, but looking beyond the pandemic, SMBs operating in the B2B space must confront the challenge of slow payments. The “net terms” economy hurts SMBs, and during economic downturns, buyers stretch out payments. It’s a $3.1 trillion problem in the U.S. — that’s the amount estimated by Fundbox and PYMNTS to be tied up in receivables on any given day as buyers take 30, 60, 90 or more days to pay.

Fundbox, which offers credit and invoice financing, said Tuesday (May 26) that it had received a fresh equity investment from MUFG Innovation Partners Co. Ltd., the corporate venture capital arm of Mitsubishi UFJ Financial Group.

With the latest financing, MUFG Innovation Partners tripled its investment in Fundbox’s Series C round announced in September 2019, bringing the total equity funding in the round to almost $200 million.

In an interview with Karen Webster, Eyal Shinar, founder and CEO, said the investment comes as Fundbox has seen rising demand for its offerings, including a doubling in demand for Fundbox Pay. Fundbox Pay is a payment and credit solution focused on SMB B2B transactions in the U.S. launched a bit more than two years ago. Read more…