FlexPoint Launches ‘Full-Suite’ Payment Tool, Capital For MSPs And Their Clients
‘Whether it’s an MSP that is self-financing a project for a client or they’re looking to grow and do not have access to a line of capital from a bank, we’re able to provide all that working capital to both the MSP and their clients all in a single platform,’ says Victor Lopez, co-founder and CEO of FlexPoint.
FlexPoint, a payments automation platform provider, officially launched in the IT channel today creating easier financial solutions and offering working capital for MSPs and their end customers.
“We think what we’re building, which is really focused on financial tools for MSPs to run their business, has to be done by someone outside the MSP ecosystem,” Victor Lopez (pictured), co-founder and CEO of FlexPoint, told CRN in an exclusive interview. “At the end of the day, you’re really good at IT. But when it comes to running your business, that’s not your number one thing.”
New York-based FlexPoint, co-founded by Lopez (pictured) and Sam Kushner, offers a platform that creates financial tools for MSPs through two products: The first is a payment solution that allows MSPs to automate their whole billing cycle. The second is a working capital solution that provides short-term financing for both MSPs and their clients.
“Whether it’s an MSP that is self-financing a project for a client or they’re looking to grow and does not have access to a line of capital from a bank, we’re able to provide all that working capital to both the MSP and their clients all in a single platform,” Lopez said. “What we’re looking to do is build a full suite of financial products for MSPs to help MSPs with that side of their business.”
Loans range from $5,000 to $150,000 and must go to a technical project the FlexPoint partner is working on.
The vendor’s payments platform is supported by GreatAmerica Financial Services, a national commercial equipment finance company. FlexPoint also raised $2.4 million in funding led by Garuda Ventures, with participation from Far Out Ventures, Techstars, Cascade Seed Fund, and Lorimer Ventures as well as founders and executives from ConnectWise, NinjaOne, CyberFox, Rewst, Empath Cyber and LifeCycle Insights.
“The lack of access to capital was a huge barrier to growth,” said Patrick Kemp, co-founder at Fort Wayne, Ind.-based Loud and Clear Communications. “By partnering with FlexPoint, not only did I receive the capital I needed to grow my business, but my clients now have an easy way to pay. FlexPoint has removed all of the friction from getting paid [and] my cash flow has never been better.”
Lopez, who is 36, also is intentionally focused on helping younger generations in the IT space.
“One of the things that we are extremely focused on is this trend that the majority of small businesses in the United States are owned by the baby boomer generation,” he said. “There’s this big hand off where it’s either a younger generation will be taking over, and that’s going to happen over the next 10 or 20 years, or these businesses are just going to disappear.”
What he’s finding is that the younger generations, millennials and Gen Z, are looking to take over those businesses, specifically MSPs, and are even more focused on tech.
“I think there’s going to be a higher demand for simplicity of use but also just generally things that make your life easier as a small business,” he said.