Non-prime consumer financing company Goeasy has provided C$34m ($25.5m) of equity funding for Canada-based instalment plan provider PayBright in connection with a strategic partnership.
Founded in 2009, PayBright offers consumer payment plans in partnership with both e-commerce and physical retail outlets, which benefit from extra potential sales and greater customer loyalty.
Customers receive an instant decision when applying for credit while purchasing a product, and then repay the company over the course of four or 12 instalments with an interest rate that can potentially be as low as 0%.
Under the terms of the partnership agreement, Goeasy will provide non-prime financing for PayBright’s payment platform through consumer lending subsidiary Easyfinancial. It will also get a seat on PayBright’s advisory board.
The company has now raised about $45m altogether, and the latest funding was disclosed at the same time as a round of undisclosed size in late 2018 that was led by private equity fund Canadian Business Growth Fund and backed by insurance firm IA Financial Group.
Jason Mullins, president and chief executive officer of Goeasy, said: “Expanding our point-of-sale financing business, as part of the plan to develop our channels of distribution and make credit more accessible to non-prime customers, has been a key pillar of our strategy.
“We are excited about our strategic partnership and investment in PayBright, which will enhance their instant point-of-sale payment platform through the introduction of financing to more non-prime consumers. After a thorough review of the market, PayBright was an obvious partner.”