SAN MATEO, Calif., Aug. 8, 2016 /PRNewswire/ -- Finexio, the smart B2B payment network, announced today it has secured $1M in seed funding. The financing was led by James R. Heistand with participation from Loeb.nyc, and a number of seasoned angel investors from the fintech industry.
Currently, ACH and credit card B2B solutions contain high fees, extensive manual processes, and a confusing enrollment method that frustrate corporate buyers and suppliers alike. Consequently, 50% of the U.S.'s B2B commercial spend, worth about $12 trillion USD, remains on paper check due to the lack of an appropriately priced, effective, and efficient commercial payment solution.
Finexio's B2B payment capabilities fill the gap between these existing solutions by intelligently routing payments on and off existing ACH and credit card rails to find the best possible transaction price. This solution seamlessly integrates into enterprise accounts payables and procurement software platforms to effortlessly embed payments into the corporate buying and selling experience.
"Having spent years as financial processes consultants and working at large "Fintech" and payments companies, we experienced first-hand the paper based, slow manual delivery of "virtual credit cards". These cards are currently mindlessly printed on tens of thousands of pieces of paper monthly, then mailed or faxed to suppliers. Not only are these suppliers forced to undergo a costly manual effort to receive their money, but they also are forced to pay a 3.5-5% fee for processing costs. We knew there was a better way to both pay and get paid as tens of thousands of suppliers, many of them small businesses, deserved better," said Ernest Rolfson, CEO and Founder.
"I was impressed with the team and vision behind Finexio, the large market they were going after, and the traction developed in such a short time to tackle a clearly addressable problem," remarked James R. Heistand, CEO Parkway Properties. "Our finance team had previously tried to implement a standard credit card payables program for our company that failed to gain any traction due to the high fees it forced upon our suppliers. Today we are still printing and mailing thousands and thousands of checks annually, but look forward to applying this truly unique solution to eliminate unnecessary process and cost for both us and our suppliers."
Through a single point of contact, Finexio weaves together access to several private "closed loop" payment processing networks by collaborating with a variety of payment and billing aggregators, payment facilitators, merchant acquirers, processors, and payment networks. "We started working with large enterprise accounts payable automation vendors who realized they were leaving money on the table by sending checks to the majority of their suppliers instead of a modern electronic solution," shared CTO and co-founder David McGuerty "We started by matching up the existing paper check spend to Finexio electronic network reach. In the last several months alone we have identified several hundred million dollars of paper payments that could be shifted to a more efficient electronic payment. It's a good deal for both buyer and supplier."
This round of investment will allow Finexio to further enhance its payment platform and develop additional integrations to extend its reach beyond the several hundred thousand suppliers already payable on the Finexio rails.
Third party vendors who either make payments on behalf of buyers or process payments on behalf of suppliers interested in partnering and integrating with Finexio should visit http://www.finexio.com for more information.
Finexio is the smart B2B payment network. The Finexio network eliminates commercial paper check spend by identifying and routing payments through a unique "network of closed loop networks". Payments on the Finexio rails are seamlessly pushed into a supplier's bank accounts at fees substantially lower than prevailing commercial payment costs. Finexio integrates into large payment aggregators, accounts payable automation, and procurement software platforms to enable them with a more efficient payment modality.
About James R. Heistand
Jim Heistand was appointed as President and Chief Executive Officer of Parkway in December 2011 and served as Executive Chairman of the Company just prior to his current role. Jim joined Parkway through a combination with Eola Capital and founded Eola Capital in 2000 and served as chairman since its inception. Eola acquired $1.3 billion of office assets backed by PSP, GE Capital, Lehman Brothers and others that included 13.3 million square feet in Florida, Atlanta and Virginia. Jim currently serves on the board of directors of United Legacy Bank in Orlando, Florida and is a member of the chairman's circle of the real estate advisory board for the Warrington College of Business Administration at the University of Florida.
Loeb.nyc is a startup lab and early-stage private investor built on the belief that aligning the right people with the right ideas creates successful companies. We've been active in the entrepreneurial community for decades, and now, our brand new space in the heart of Midtown Manhattan will carry on the Loeb Enterprises legacy of developing successful businesses. We are entrepreneurs, strategic partners, mentors, and industry experts who have launched and scaled enduring companies across industries utilizing proven strategies and techniques.
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