Minneapolis-based Apruve raised $6 million in Series A venture funding on January 24 in a round led by Cloud Apps Capital Partners, with TTV Capital and AllegisCyber participating in the round.
The company plans to use the capital on research and development, and to expand its market reach.
The company, founded in 2013, is a B2B credit automation platform that manages, and finances customer orders placed on account. Apruve provides a platform that extends suppliers’ payment terms to their customers while itself taking on the financial risk and collections.
Apruve uses third-party banks to finance orders in real time. Buyers place an order, and Apruve pays the supplier within 24 hours of a shipment, while suppliers’ payment terms remain in place. Apruve then invoices the buyers who still have 30+ days to pay. Apruve’s credit program is free for buyers to use with participating suppliers. Pricing for suppliers is based on the number of accounts with an associated financing fee based on order volume.
Company co-founders are Michael Noble and W. Thomas Smith Jr.
“In today’s business market, it’s become a competitive advantage to extend terms, but it compromises a business’s capital and creates added overhead,” said Noble in a press release. “Our goal is to help companies realize the sales advantage of giving their customers an account to purchase against without putting their own cash flow at risk.”
Visit https://apruve.com/ to learn more about this company.