Apruve Inc., a provider of online financial management technology and services, is out to make it easier for businesses to accept online orders from business customers by providing instant credit.
Now it has $2.25 million in Series A funding, from TTV Capital and Allegis Capital, to build on its growth plans. It plans to use the funding on product development and for expanding its marketing and sales teams.
“We believe Apruve is solving a fundamental problem that will enable more businesses to ride the $1.3 trillion wave of B2B e-commerce that is currently unfolding,” says Tom Smith, managing director at TTV. “Their solution takes an outdated accounts/receivable process, automates it and then underwrites the credit risk for the seller. The ROI they can deliver is extremely strong.” (Forrester Research Inc. has projected that B2B e-commerce sales in the United States will reach $1.13 trillion by 2020. Researchers Frost & Sullivan project an even higher figure by then of $1.9 trillion.)
With the Minneapolis-based Apruve’s technology and services, operators of e-commerce sites can let their customers apply online for credit of up to $50,000, or a revolving line of credit up to $1 million. Apruve also provides electronic invoicing and collections, forwards orders for payment through the interbank network known as ACH or payment cards, and it underwrites the credit and forwards payment to client sellers within 24 hours for customer orders placed online.
The company’s primarily small-and medium-sized clients include Legal Supply, a distributor of office supplies to law firms; Curriculet Inc., a provider of software and textbooks to schools; and Intervotion LLC, which provides software to government agencies.
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