Daily News: July 30, 2015

Victory Park Funds $119MM Credit Facility to Behalf

Behalf, the payments platform targeted at small and mid-sized businesses, announced a Series B equity round and credit facility totaling $119 million.

Victory Park Capital (VPC) provided a credit facility in addition to contributing to the equity round. Maverick Ventures as well as past investors Spark Capital and Sequoia Capital also participated.

MissionOG, an early to growth stage venture capital firm chaired by Gene Lockhart, the former CEO of MasterCard, led the equity round. Lockhart is joining the board of Behalf.

Behalf will use the new funds to grow its team and increase the number and size of working capital lines it offers.

Along with the funding, Behalf announced the opening of its New York City headquarters in the Flatiron District.

Behalf provides simple working capital lines to small businesses to help bridge the cash flow gap between having to pay a vendor for a purchase and the time it takes to generate revenue from that purchase. To cover this gap, Behalf pays an SMB’s vendor invoice, at a value of up to $25,000 per purchase, and the SMB then pays Behalf back in up to 150 days. The SMB receives favorable rates and terms and benefits from increased working capital. Vendors benefit from more rapid cash flow and increased sales while reducing the cost of fraud, credit losses, account management and collections.