Now®, the Atlanta-based FinTech company co-founded by Stacey Abrams and Lara Hodgson, today announced $29M in financing from a new credit facility and an additional equity investment in Now® led by Brigade Capital Management, LP and Virgo Investment Group. The new credit facility will enable Now® to serve more small businesses with its innovative payments acceleration solution, NowAccount®, at a time when the needs of small and diverse businesses have never been greater. The additional equity investment will be used to further scale company operations and to enhance its suite of offerings to meet the evolving needs of its clients as they feel the ongoing effects of COVID-19.
The company also announced that Sejal Shah Gulati has joined Now® as the companys Chief Growth Officer. Gulati has deep payments experience, having served as General Manager and Vice President, Global Commercial Services – Global Marketing Hub for American Express. Most recently she was SVP and General Manager High Growth Companies and Banking and Capital Markets for Genpact.
Unpaid invoices are an age-old problem that prevents businesses from growing, said Gulati. Im excited to join the team at Now® as they pioneer innovative solutions to address this issue.
As the Chief Growth Officer, Gulati will serve on the executive leadership team and will lead Now®s growth initiatives including sales, marketing, client success and product management.
Our clients are passionate entrepreneurs committed to the growth of their businesses, and it was essential that we had someone responsible for our own growth with the same level of ambition and dedication, said Lara Hodgson, CEO and co-founder of Now®. Her wealth of experience and keen business acumen will be an asset to our company and our clients.
Growing Demand
The new funding comes on the heels of an announced $9.5MM in funding in June of this year, led by Virgo, with participation from Cresset Capital Partners. Since the start of the pandemic in Spring of 2020, Now® has seen increased demand for their services as invoice payment times have ballooned from an average of 48 days to more than 70. Over the last 10 years, the company has facilitated more than $700M in invoice payments, serving more than 1,000 small businesses.
We decided to partner with Now® because we believe in the future that theyre trying to build, said Max Scherr, Partner at Brigade Capital Management. Now® is transforming the way businesses operate, unlocking the potential they have to bolster the American economy.
Small businesses often carry tremendous financial burdens, while at the same time accounting for trillions of dollars of B2B commerce annually, said Hodgson. Providing businesses with an invoice payment acceleration solution enables them to access the capital needed to grow their business fearlessly as they serve more customers and engage in more commerce.
Revolutionizing Invoice Payments
Slow and late payments on invoices can restrict a businesses cash flow, force them into debt as they try to keep up with client demands and bring growth to a halt or even cause a business to grow to death. Now® has transformed the way businesses operate by creating NowAccount®, the first payment solution that allows B2B companies in the US generating up to $50MM in revenue to be paid within two business days, in a way that feels like accepting a credit card for payment (no loans or factoring) with a one-time 2.5%-5% service fee (no interest), upon verification.
A business with a NowAccount® delivers goods/services to its customer in their regular fashion, then submits the invoice to their customer and simultaneously uploads the invoice to their NowAccount®. Upon approval, Now® pays the business 100% of its invoice amount, minus the one-time service charge, within two business days. The business customer pays the business how and when they normally would and remits the payment to a lockbox or account at Now®.
To learn more about how Now® can help your business grow visit https://nowcorp.com/.
About Now
NowAccount® is an invoice payment solution that redefines how and when businesses get paid. Headquartered in Atlanta, GA, Now® was created by serial entrepreneurs who felt the pain of waiting on invoice payments from larger customers. Nows mission is to empower businesses to grow fearlessly through accelerated invoice payments. Inspired by the credit card system, NowAccount allows you to get paid immediately on your invoice while allowing your customers the flexibility to pay later. Nows vision is to create a world where diverse businesses of all sizes have access to capital, commerce, and customer opportunities.
About Brigade Capital Management
Brigade Capital Management, LP (Brigade) is a global asset management firm founded in 2006 with approximately $29.5 billion in assets under management. Brigade invests in public and private credit instruments using a bottom up investment philosophy across a variety of diversified funds. As an SEC registered investment advisor, Brigade is one of the largest independent alternative asset managers with a 49 person investment team. Founded by Donald E. Morgan III, CIO and Managing Partner, the firm is headquartered in New York with a global footprint that includes offices in London and Tokyo.
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