Organic mattress manufacturer OMI has teamed with Fundbox to offer 60-day, interest-free financing on purchases with a maximum of $100,000 in order to offer a new business credit platform.
OMI said the offering tackles one of the largest barriers to entry for merchants that have wanted to offer floor organic products for a long time but were discouraged because of the costs, Furniture Today reported.
“Every retailer we have ever spoken with is interested in flooring organic product, but they have been encumbered by the cost of flooring samples and holding minimal inventory,” said CEO Jeff Bader. “I believe this new program solves that challenge for the industry.”
With the new offering, merchants that qualify will not have minimum order requirements. Officials noted the firm will offer financing for floor model purchases for the first time. In the event that a retailer doesn’t make a full payment of the balance in 60 days, weekly installment payments with interest can be made for a maximum of 12 months.
As a result, OMI’s partners can have substantial cash flow freed up.
“Fundbox is a unique lending platform specifically designed with small businesses in mind,” Bader said. “They understand the unique challenges of cash management, which regardless of industry, is critical to success.”
In separate news, Fundbox recently announced $176 million in Series C funding that will fuel the company’s expansion in the B2B payments space.
As Fundbox builds out its technology to unlock that capital, the equity financing, provided by Allianz X, HabourVest, Healthcare of Ontario Pension Plan and many others, with the inclusion of existing backers Khosla, Spark Capital Growth and General Catalyst, will help Fundbox augment its existing credit line offering for small businesses with the creation and operation of B2B payment rails for its users.
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