Steven Uster is the Co-Founder & CEO of FundThrough, an invoice funding platform that helps business owners eliminate “the wait” associated with payment terms by giving them the power and flexibility to get their invoices paid when they want, with one click, and in as little as 24 hours.  Launched in 2014 FundThrough has quickly become one of Canada’s leading Fintech startups, funding millions of dollars in invoices every month.

Prior to starting FundThrough, Steven was an investment banker at UBS and Centerview Partners.  He has an MBA from The Wharton School and a Bachelor of Commerce with Honors’ from McGill University, where he was a Loran Scholar.

How did the idea of starting FundThrough come to you? And how did you start-up your own business? Let’s talk about the first year, and how your start up came into being

I had started my own financial services company for small business owners focusing on invoice funding.   One day it just kind of hit me that it would be awesome if we could put some technology around this with the goal of making it super easy to get on a platform, and get your invoices funded in 24 hours, in addition to getting an amazing user experience.  With that ‘Newton kind of insight’ FundThrough was born!  Initially we did a lot of work manually as we replicated what the technology would eventually do and also attracted some early adopter users.  Once we had proven that there was a demand, we raised an equity round through a large Canadian venture capital firm, hired a team (there are now 17 of us!) and have now built the technology, around that idea.

Take us through the process of what the name and the benefit suggest to your target audience who comprise of small business owners

When businesses associate with FundThrough, they’re eliminating the wait time associated with getting paid and take advantage of accessing their own funds sooner than ever.

How are you reinventing the way businesses get financing?

With FundThrough, we’re allowing good businesses to fund themselves by using their own receivables as an asset to borrow against.  All you need to continue to fund your growth is to keep on selling!  Our customers love it because they’ve already delivered their goods or services so this is not new money, it’s theirs.  Getting it early however is a huge advantage.

It certainly looks like FundThrough is giving small business owners peace of mind by promising their invoices will be paid in 24 hours.  Would you like to explain this process?

Once a client is on the platform funding an invoice is as easy as clicking a button.  Because we’ve already used our technology to approve them and their customers the entire process can be automated.  That means funds arrive in their bank account within 24 hours of their request.

What if a business failed, and worse failed to repay the loan.  Have you ever come across this, and if so, what happens next?

Lending works a bit differently at FundThrough. Our customers don’t repay the loan.  Instead, they assign the invoice over to us.  So we get paid back by their good quality customers.

FundThrough Express, and FundThrough PRO are the 2 services offered. Explain to us the benefits

Express is perfect for the freelancer or business owner that is looking to fund smaller invoice volumes, anywhere from $500 to $10,000.  It can even go up to $30,000.  It’s fully automated in that it connects to your accounting software and you don’t need to talk to anyone or send us anything.  It’s the fastest, easiest way to start funding invoices.  Our PRO service is ideal for larger invoice volumes because there are no funding limits.  Both services will help fund your invoices in 24 hours.

Your company certainly eliminates the worry of being in business, but tell us how it profits you.  Is there a specific interest rate applied on the borrowed loans?

We earn money in two ways.  First, we charge a one-time transaction fee between 0.75% and 1.50% when invoices are funded.  We also charge a daily funding fee, which accrues for as long as the invoice is outstanding.  We take 20% of this fee and the other 80% goes to our lenders.  The actual rates can vary depending on who you sell to or the service you are using.

FundThrough also offers venture capital, and marketplace lending.  What makes your company shine through your competition, and what are the steps taken to evaluate a business

FundThrough is Canada’s first and only invoice funding platform.  If you are invoicing to get paid and want to be able to have full control of what you fund and when, FundThrough is for you.  When working with clients we look at both the customers they sell to, as well as certain aspects of their business, like if they have any other outstanding debts or are up to date on their CRA source deductions.

How is Fintech, and in particular FundThrough turning traditional finance on its head?

FundThrough is bringing fast, easy invoice funding to good Canadian businesses that are not being served by traditional lenders.  Imagine getting turned down for a line of credit by your bank and then having FundThrough fund hundreds of thousands in invoices for you.  That is truly turning traditional lending on its head and it is happening superfast.   More businesses are looking for a company who completely understands their need of the hour requirements.

How have businesses, and more importantly the marketplace taken to FundThrough, and where do you see it going in the next 5 years?

It’s been a wild but exhilarating ride.  Every week we are funding millions of dollars in invoices and helping entrepreneurs realize their passions.  In our latest customer survey our NPS (Net Promoter Score is an index that measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand) was 100.  This is truly a reflection of the value that we are creating with our clients.