Chargezoom Raises $10M to Grow AR Automation Solution

B2B invoicing and payments platform Chargezoom has raised $10 million in Series A funding to continue its product expansion and double the size of its staff by the end of the year.

“We are grateful to work with investors who share our vision of redefining B2B payments,” Chargezoom CEO Matt Dubois said in a Tuesday (Sept. 6) press release. “We plan to double-down customer-focused development efforts, creating tools that modern businesses need to reduce payment friction and accelerate their growth.”

Chargezoom integrates with common accounting applications like QuickBooks, FreshBooks and Xero, and provides tools that allow businesses to collect payments faster with full generally accepted account principles (GAAP) compliance and without the need for manual accounting tasks, according to the press release.

Read more: Billing Platform Chargezoom Offers FreshBooks Integration

The company has partnered with Fortune 500 payment service providers and most of the top 20 merchant acquirers in the United States, per the release, powering transactions directly and through these partners’ white-label solutions.

“Matt and his outstanding team have led the way in bringing the proven processing capabilities of the major processors, folks like Heartland, North American Bancard, Fiserv and similar to businesses allowing them to focus on accounting and operations,” said Dan Drechsel, general partner at Panoramic Ventures, which led the funding round.

PYMNTS has reported that accounts receivable (AR) automation could play a critical role in shortening payments delays, minimizing AR errors and reducing days sales outstanding (DSO).

See also: Deep Dive: AR Automation and Overcoming the Challenges That Can Prevent Successful Implementation

The November 2021 “Working Capital Playbook” found that among the firms that use AR automation, 87% reported gains in overall process speed, while 75% said AR automation had improved their customer service.

In addition, the average automated business reported a DSO of 40 days, while businesses that conduct their AR operations manually reported a DSO of 47 days.

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