$19 million in venture capital and up to $100 million from a new credit facility will enable the company to expand its financing solutions for B2B merchants and their customers
NEW YORK and RA’ANANA, Israel, July 28, 2021 (GLOBE NEWSWIRE) — On behalf, Inc., a provider of purchase financing solutions for B2B sellers and buyers, today announced $19 million in new venture capital funding. The round was led by existing investors MissionOG, Viola Growth, Viola Credit and Vintage Investment Partners. New investors, Migdal Insurance and La Maison Partners, are also participating in the financing round.
In addition, Behalf announced the creation of a new credit facility totaling up to $100 million, provided by funds managed by Management company Ares (“Ares”). The capital raised will allow Behalf to expand the availability of purchase financing to a wider range of B2B merchants and their SMB customers, while continuing to expand the capabilities of its industry-leading platform.
“The B2B e-commerce market is ripe for transformation. Merchants recognize the opportunity to generate new revenue by deploying purchase financing,” said Rob Rosenblatt, CEO of Behalf. “At the same time, small and medium-sized enterprises (SMEs) need access to affordable financing options – an ongoing challenge exacerbated during COVID. Even as the U.S. economy improves, SMEs continue to seek financial assistance to purchase essential supplies, inventory and equipment. Often they do not have the required ability to spend on their personal or business credit cards. By offering purchase financing with flexible terms, B2B merchants can increase average order size by 50-80% while reducing their risk, improving cash flow and improving operational efficiency.
Behalf’s purchase financing solution offers B2B merchants all the benefits of consumer-focused Buy Now, Pay Later offerings, plus features specifically designed for business-to-business commerce, including:
Seamless checkout that dramatically improves the customer experience, encourages single-session checkout, and builds customer loyalty.
Easy integration with existing POS systems, avoiding disruptions that might otherwise impact real-time commerce.
Incorporation of advanced underwriting and scoring models based on large datasets, activity history and other predictive metrics to address the added complexity and risk of SME lending – enabling Behalf to offer a financing when traditional banks are unable to do so.
The ability to meet the needs of virtually all of the merchant’s business customers – small, medium and large.
Financing transactions with a significantly higher average order value than consumer financing offers.
Share best practices with B2B merchants to enable them to offer different financing options to sell more products.
“We are delighted to invest in Behalf’s current round,” said Guy Fischer, Deputy Managing Director and Chief Investment Officer of Migdal. “This investment is being made from our $1.5 billion (USD) in-house FinTech fund and is part of our strategy of investing in FinTech companies that have strong growth potential. To support Behalf’s growth, we are also in discussions with the company about a potential 0 million (USD) credit facility. This injection of capital should support a steep growth curve for the company.
“We believe there is an excellent market opportunity for a B2B offering targeting the more complex real-time financing needs of SMEs,” said Jeffrey Kramer, Partner and Head of ABS in Alternative Credit Strategy at Ares Credit Group. “We are delighted to provide a credit facility that will help the company achieve its growth objectives.”
Behalf offers alternative B2B financing solutions tailored for real-time commerce through e-retail, assisted selling and other merchant sales channels. The solutions allow merchants to outsource their net terms and extended funding programs, and receive payment as early as the next business day. With Behalf, merchants can dramatically increase the buying power of their business customers without tying up capital or devoting resources to credit and collection activities. Customers can receive in-purchase financing from Net-30 for up to 180 days.
Behalf’s e-commerce financing solution is offered by a range of merchants in electronics, mobile phone resale, business supplies, medical and healthcare, home/hardware and other categories of merchants. To date, Behalf has onboarded over 19,000 merchants and 95,000 business customers, and provided over $1 billion in funding. For more information, visit https://www.behalf.com/.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions across the asset classes of credit, private equity, real estate and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, which closed June 2, 2021, and the acquisition of Black Creek Group, which closed July 1, 2021, Ares Management’s global platform had approximately $239 billion of assets under management with approximately 2,000 employees operating in North America, Europe, Asia-Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
About Ares Alternative Credit
Ares’ alternative credit strategy focuses on direct lending and investing in assets that generate contractual cash flows and bridge the gaps in capital markets between credit, private equity and real estate. Ares Alternative Credit targets investments across the capital structure in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net leasing, cash flow (royalties, licenses, management fees) and other asset-based investments. Co-led by Keith Ashton and Joel Holsinger, Ares Alternative Credit relies on a broadly skilled and cohesive team of approximately 40 investment professionals as of March 31, 2021.
CONTACT: Media Contacts: for Behalf Tim Walsh [email protected] 617.512.1641 for Ares Management Corporation Carl Drake, 888-818-5298 [email protected] or Brittany Cash, 212-301-0347 [email protected]