LOS ANGELES, CA – October 19, 2022 — Credit Key, the leading “Buy Now, Pay Later” solution for B2B e-commerce, today announced it has secured a $100 million debt facility from funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), expanding the company’s ability to provide funding to small businesses at e-commerce point of sale. The facility may be upsized to $150 million at the lender’s discretion.
In addition to the debt facility, the Los Angeles-based fintech also raised a $15 million equity round of funding, led by RedBird Capital, Bonfire Ventures, and Greycroft.
The B2B e-commerce market is twice the size of B2C and growing faster,1 yet options for merchants to extend credit and alternative payment methods to their customers at e-commerce point of sale are still very limited. “While we’re seeing a slowdown across the tech sector, there is still a huge untapped opportunity in B2B e-commerce payments. This e-commerce market is 10-15 years behind B2C on the digital maturity curve but is rapidly catching up,” said John Tomich, CEO, and co-founder of Credit Key.
With the expanding number of merchants integrating Credit Key at checkout and the company’s 4x YoY growth on volume, the new debt facility will allow more businesses to access capital through Credit Key’s flexible point-of-sale financing options. “Historically, small and mid-sized businesses have been underserved, with less access to capital to purchase necessary equipment, inventory, and supplies. With our new debt facility, our team is dedicated to opening up more opportunities for businesses to access credit and alternative payment options when purchasing online, similar to what many companies have done for consumers,” said Tomich.
“Credit Key is a recognized leader and innovator in the fast-growing B2B e-commerce market,” said Fortress Managing Director Josh Bonacci. “We believe this facility will enable Credit Key to bring their solutions to more small and mid-sized businesses, capitalizing on significant and increasing demand for financing solutions in the B2B e-commerce market.”
“We have been staunch believers in Credit Key’s ability to revolutionize the multi-trillion dollar B2B e-commerce space with seamless point-of-sale payments since leading the seed financing,” said Kamran Ansari, Venture Partner at Greycroft. “It’s a testament to their continued growth and leadership position in this market to have secured a $150M facility with Fortress, one of the world’s leading financial institutions, with whom we very much look forward to partnering.”
Businesses of all sizes are looking for more flexible payment options. With the overall US business payment industry growing to $27 trillion in 2021,2 alternative financing continues to be in high demand as e-commerce constitutes an ever-growing segment of this market.
To learn more about Credit Key, please visit: https://www.creditkey.com/.
About Credit Key
Credit Key is a B2B payment solutions company that allows merchants to offer an instant Buy Now, Pay Later function that is seamlessly integrated in any channel, including the e-commerce checkout, over the phone, or in-store. Credit Key’s proprietary process facilitates lightning-fast financing approval that is unique in the B2B space and helps merchants drive sales, revenue, and conversions, risk-free. Merchants equipped with Credit Key also benefit from immediate payment, greater AOV, and stronger customer loyalty. Borrowers benefit from instant approval, no documentation required, 0% interest for the first 30 days, and terms up to 12 months.
1 B2B e-commerce in the US valued at $1.7T at the end of 2021 and is expected to rise to $3T by 2027. 2022 B2B E-Commerce Forecast, US
2 Insider Intelligence, July, 2021 (US): ACH $11.7T, Check/Cash $12T, Wire /Other $3T and Card $1.8T