According to a news release, FinTech NorthOne has secured $67 million in Series B investment to extend its commercial banking and financial management platform.
Older banking institutions have not adequately supported a variety of main street companies, therefore the firm was established to fill that gap. The firm claims it will develop new working capital and loan products, as well as quicker and more practical payment options for business owners, with the fresh investment to help it increase the quality of its goods and services.
According to co-founder and COO Justin Adler, 50% of small businesses fail within a 5-year period, with a large portion of failures being attributable to financial mismanagement and a lack of financial controls. The firm was formed to “address significant problems,” he continued.
Co-founder and CEO Eytan Bensoussan stated that the company has been attempting to provide a business experience that can support clients’ demands.
“As our customers get bigger, their issues become more complex than just money issues. We are able to offer our customers a transformative offering that has always seemed out of reach: a world-class finance department tailored to their company, according to Bensoussan. This is accomplished by connecting the data layer between accounting, payables, receivables, payroll, lending, and all other financial operations with the bank account ledger.
According to Bensoussan, the decision was made because overdraft fees have come to be perceived as harmful, turning into more of a “business and profit center” than the intended deterrent and method for recovering costs. As a result, these fees sometimes force small enterprises to lose a significant portion of their earnings.
“That’s wrong,” said Bensoussan. And many small firms may find this to be very difficult. We’re pleased to make our pricing even more straightforward and transparent for NorthOne clients by doing away with NSF and overdraft fees.
