logo_mdCanadian shoppers whose merchants have a relationship with FinanceIT don’t need to pay out-of-pocket for purchases.  FinanceIT has built a credit platform that allows a consumer to finance certain purchases at the point of sale, possibly at a better interest rate than their credit cards and definitely with more payment options.

FinanceIT’s clients are vendors who sell vehicles, home renovations, health offerings, or retail products to the consumer.  The business model focuses on making the financing of the product available to the consumer at the point of sale so that there isn’t any excuse not to purchase if the buyer is feeling a little light in the wallet.  The vendor can offer financing deals which delay payment for 3, 6, or 12 months at an interest rate as low as 7.13% — financing which may be much more attractive than credit card financing with a 30-day settlement and/or financing starting at 14 or 15 percent.

It was announced today that FinanceIT just raised $13 million in a Series A round to apply towards their application rollout in the United States.  They are a Toronto-based company that has managed to write $500 million plus in loans with 2,500 vendors since their inception in 2011.

To make the credit process as frictionless as possible the consumer requirements need to be simple and easy to secure.  Clearly, the key driver in any financing/credit business is the consumer’s credit score. The score is the determining factor for the interest rate and any of the other structuring features of the loan, including amortization, payment deferral and length of loan.  Once the credit inputs are determined and approved the vendor can receive payment in one business day.

Ideally, a win/win.  The vendor is pleased to make a sale without retaining the consumer credit risk and the consumer is pleased that they have more financing options for their purchase.  I didn’t notice who retains the credit risk for FinanceIT, but wouldn’t it be great to see them create a two-way peer lending market and they could lay off the credit risk on a peer lender and serve as a matchmaking tech platform?

from Douglas MacFaddin’s Tech Market Page


Published by: Doug MacFaddin

Douglas Willis MacFaddin was born June 16, 1961 in the Miamisburg Hospital to Patricia Ann MacFaddin and Richard Willis MacFaddin. My mother’s maiden name is Morrison and she is the youngest of seven children who were raised in Lycippus, PA. My father was the second of four children and was a twin. He was raised in the town of Viola, DE. At the time of my birth, my father worked at the Mound Laboratories in Miamisburg, Ohio in research. Mound was an Atomic Energy Commission facility for nuclear weapon research during the Cold War. My mother made a home for our family. My father passed away in 1991 and my mother is currently living in Avon, CT. Doug MacFaddin is the oldest of five children (Doug, R. Stuart, Anne Marie, Megan and Mary (Heather)). I lived in Ohio for two years, spent the next seven years in Murrysville, PA (outside of Pittsburgh), moved to Little Silver, NJ and relocated my senior year in high school to Avon, CT. My four siblings currently live with their families in Avon, CT and are members of St. Ann’s Church. I attended Mother of Sorrows School in Murrysville, PA. In NJ, I attended Little Silver Point Road School, Markham Place School and Christian Brothers Academy (CBA) in Lincroft, NJ for three years. My senior year, I attended Avon High School and I then spent the next four years at Union College, Schenectady, NY. I received a BS in Industrial Economics and graduated in June 1983. While at Salomon Brothers, I was asked to attend a two-week seminar for Public Finance at the University of Michigan in 1986. In Little Silver, I was involved in Troop 126 where I achieved the rank of Life Scout and was both a Patrol Leader and a Senior Patrol Leader. I also was an alter boy at St. James Catholic Church and spent summers a the Ship Ahoy Beach Club in Seabright, NJ and caddying at the Rumson Country Club. At Christian Brothers Academy, I wrestled for the varsity squad for three years. I took second in the districts my junior year and went on to the regionals. I also ran on their cross country team freshman year and was part of the CBA Colt team that hasn’t lost a duel meet since 1973. My senior year at Avon, I won the wrestling States (S). I went on to wrestle at Union College and qualified for the Div III nationals twice (1981, 1982) and was co-captain both years. My senior year at Avon, CT, I also won the States (S) in pole vaulting. It was the first time Avon High School had a state champ in two sports in the same year. During my four years, I earned nine varsity letters between wrestling, track and football. In 1979, I was accepted into The National Honor & Merit Scholars Society. Upon graduating from Union College, I accepted a position at Salomon Brothers Inc in August 1983. I was an analyst in their Public Finance department at One New York Plaza. I lived in Park Slope, Brooklyn and spent the next four years working at Salomon Brothers. As a result of Black Monday, October 19, 1987 the Public Finance Department of Salomon Brothers was jettisoned to conserve capital. By November 1, 1987, I was working at Dean Witter Reynolds in the new Public Finance Department made up of many of my former Salomon Brother’s colleagues. The new Department was located on the 57th floor of 2 World Trade Center.

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