Among the latest announcements in the short-term small business financing realm, Bizfi said earlier this month that it had entered a funding partnership with InterNex Capital, an asset-based digital lender.
Under the terms of the pact, small to mid-sized manufacturing, trucking and other businesses can access revolving credit lines ranging from $250,000 to $5 million, backed by assets. The companies said that InterNex becomes one of more than 45 lenders operating on the Bizfi platform.
In an interview with PYMNTS, Stephen Sheinbaum, founder of Bizfi, said that the partnership represents “an entirely new option to our platform” as credit is issued against a business’ accounts receivable. “It’s an annual facility, as opposed to a one-time loan. InterNex likes to say that what they do is ‘forward-looking funding,’ and I agree. It’s based on the future of the business and the strength of their clients.”
Some hallmarks of the application process remain, said Sheinbaum, as data and company information tied to loans are transmitted online, this time through the InterNex portal, where the applicants can manage client invoices and access funding. As for cross-selling in-house, he said, Bizfi has been “constantly analyzing the types and sizes of companies that are coming to us for funding.”
“After seeing an increased interest from manufacturing, transportation, logistics and other related sectors, we thought these areas could benefit from having an asset-based lending option, and we know we found a partner that could meet this demand.”
Bizfi said Thursday (Dec. 22) that it had surpassed $2 billion in financing for more than 35,000 businesses.
Separately, Matthew Gillman, director of business development for InterNex Capital, stated that the manufacturers applying for funding need the capital “for raw materials and equipment immediately. They can’t get a product out the door if they don’t have the appropriate capital, and they need capital in larger amounts and for longer terms than many other businesses.” And, he said, the relationship between the two firms fills a need by “providing B2B clients with a flexible solution in a market that has a constant demand for liquidity.”