Credit Key Raises $33M to Revolutionize B2B Payments

Providing small and medium-sized enterprises throughout the United States with a buy-now pay-later system – a strategy that propelled companies such as Klarna and Affirm to substantial valuations – has resulted in another $33.85 million in funding for the payment and lending firm Credit Key.

The company, headquartered in Los Angeles, secured this recent investment from Greycroft, Bonfire Ventures, Loeb.nyc, and several other investors who have chosen to remain anonymous, according to a company announcement.

“The business-to-business e-commerce sector is experiencing significant growth, yet a substantial number of sellers currently do not offer the payment options their customers desire,” explained John Tomich, co-founder and CEO of Credit Key, in a released statement. “By providing an increasing number of merchants with our financing solution at the point of sale, we are observing trends indicating increased order values, reduced shopping cart abandonment rates, and enhanced customer recruitment.”

The company delivers to businesses an alternative payment method that swiftly facilitates financing for purchases made at the time of transaction.

Credit Key manages both the credit risk and the administration of loans, while purchasers benefit from clear payment schedules and competitive interest rates, the company reports.

The potential market is considerable. Annual business-to-business payments in the U.S. exceed $9 trillion, and although currently only $1.3 trillion of this total is processed online, the proportion of e-commerce transactions is increasing at a fast rate.

Credit Key projects that the e-commerce market will attain a value of $1.8 trillion by 2022.

“As small and medium-sized businesses expand their online purchasing activities, they are actively seeking alternatives to the constraints of traditional trade credit and standard credit cards,” Tomich stated. “We foresee continued growth and are pleased to support small businesses as they navigate the economic recovery and prepare for future success.”