Raleigh-Based Business Financial Services Raises $9M

Raleigh, N.C. — Business Financial Services, which provides up to $300,000 in cash advances to businesses, has raised $9 million in funding from Edison Venture Fund.

The Raleigh-based company plans to use the funds for expansion of marketing and sales, according to VentureWire.

Business Financial Services, or BFS, also has an office in Coral Springs, Fla. BFS was launched in 2000.

According to the company’s Web site, it purchases credit card receivables from a store or a restaurant at a discount and then makes an advance to that firm. BFS makes its money from a percentage of credit card transactions.

“We use the ‘real-time assets,’ the customers of the merchant, to provide funding,” BFS says. “Healthy businesses can rely on the fact that their customers will continue to spend money at their establishments. BFS provides an advance on those sales.”

BFS says it charges no upfront fees, closing costs or loss of equity.

Funds can be used for advertising, inventory, expansion, renovations, equipment, tax payments, working capital and emergencies.