Detailed information
About lender
FundThrough is a Canadian funding platform designed to extend growth opportunities to businesses via its invoice financing program. The company was founded in 2014 to ensure small businesses always have access to enough working capital. FundThrough has already helped more than 5,000 small businesses.
FundThrough helps business owners navigate their cash flow challenges by accessing the working capital tied up in accounts receivable due to slow-paying customers. The company offers two options: Velocity Invoice Factoring and Express Invoice Factoring. These solutions have different requirements and conditions.
Features
One of the most significant features of FundThrough is that it assists Canadian businesses in paying their invoices via its two programs: Velocity Invoice Factoring and Express Invoice Factoring.
One of the features of the Velocity option is that it provides unlimited funding based on the size of the invoice and 100% advance rates, minus a single fee. The funding is completed within 24 hours. This alternative is designed for businesses that make credit sales with a value ranging from $15,000 to $10 million.
The second option would be helpful for businesses whose credit sales value ranges from $500 to $15,000. You pay this amount back in 12 weekly installments.
The difference between these two solutions lies in the repayment terms: Velocity Invoice Factoring suggests your customer pays directly to FundThrough. At the same time, Express Invoice Factoring implies your customer’s paying back to you, and you later refund to FundThrough.
Invoices must be less than 90 days old to be eligible for funding. Also, as FundThrough integrates with the most popular accounting and invoicing apps, it’s essential to automatically pull invoices that are eligible for financing onto the customer’s dashboard.
Pros and cons
It is worth analyzing FundThrough’s strong and weak sides.
Pros
FundThrough ensures Canadian businesses have sufficient cashflow;
The company provides two different invoice factoring options so that customers can choose the most suitable one;
The conditions and requirements are clear and straightforward;
Customers do not have to upload their invoices manually;
If customers don’t see a payment plan that suits the needs of their business, they can connect with the support team, who will help them to find a solution that fits their business.;
Creating a FundThrough account doesn’t affect clients’ credit scores;
FundThrough uses secure, bank-grade, 256-bit encryption to protect the data;
Usually, funding and approval don’t take more than 24 hours.
Cons
The loan must be repaid in weekly installments;
Not all invoices can be paid via the company.
The company provides services that would be helpful for small businesses. Also, they have two invoice factoring options so the customers can find the best solution. Moreover, they can help the customer create a personalized payment plan in some cases.
On the other hand, there are some disadvantages. For example, the company’s specialization is too narrow, and its services will not suit people who need a loan for equipment purchases. Also, some invoices can be denied.
Loan conditions
To take advantage of FundThrough’s services, business owners must register on the company's platform and download their invoices manually or connect to other services that download invoices automatically.
The company will need business formation documents (LLC certificates, Articles of Incorporation, or some other proof of business), a government-issued photo ID, a void check from your business checking account, and authorization to review your business’ tax history. Also, they may ask for some additional information to verify the company and your customers.
Velocity Invoice Factoring provides unlimited funding based on the size of the invoice and 100% advance rates. The fees work this way:
1-30 days = 2.5%
31-45 days = 3.75%
46-60 days = 5%
61 days and up = 7.5%
Express Invoice Factoring loan is repaid via withdrawals from your bank account. Typically, there are 12 weekly installments with a 0.5% weekly fee.
Methods of loan funding
After approval, the customer will receive the borrowed amount by direct deposit or electronic transfer.
