When contracts are signed and deals are closed, sales teams break out the champagne. But for the finance team, the work has just begun.
Managing transactions and collecting payment in a timely matter can be challenging for many businesses, especially for companies in business services and other industries that operate on a do-work-now, get-paid-later basis.
To help companies speed up the cashflow collection process, Chicago startup FinanceFuel has developed an accounts receivable management system and lending service to help companies manage, process and collect payment.
Founded in 2018 and launched out of stealth mode earlier this year, FinanceFuel handles invoicing, follow-up, and fixes any financial disputes that may arise after a deal gets done. FinanceFuel works with a company's existing accounting systems, such as Quickbooks, and is done as a service for the business—meaning there's no new software to learn or hoops to jump through for the company, CEO Alex Newmann said.
"It's a very repetitive, tedious task that's super time consuming," he said. "It's ripe for disruption and some automation."
Along with helping collect cash for companies, the startup's lending arm can also provide money to business in a pinch who need cash, Newmann said.
The startup is backed by Builders, a VC firm and startup studio led by Jim Kim. Newmann declined to say how much the company has raised in funding, but Builders reportedly writes checks between $3 million and $10 million per portfolio company.
FinanceFuel works with companies in a range of industries, including agencies, professional services IT companies. Its clients include Catapult Chicago, a local co-working space.
Newmann said the startup currently has seven employees.
