An announcement states that NorthOne, a fintech company, has acquired $67 million in Series B funding to expand its platform for commercial banking and financial management.
The company was founded to fill the void left by older financial institutions’ inability to appropriately service a range of main street businesses. The company asserts that with the additional funding, it would create new working capital and loan solutions, as well as speedier and more convenient payment choices for business owners, to help it improve the quality of its products and services.
50% of small firms die within five years, according to co-founder and COO Justin Adler, and a lot of those failures are due to financial mismanagement and a lack of financial controls.
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.
