Payment processing solution AdvicePay has closed a $500k seed round of funding led by Goodworks Ventures and Front Street Capital.
A majority of the equity in the round was supplied by a group of undisclosed financial advisors.
AdvicePay enables advisors to bill and collect financial planning fees from a client’s credit card or bank account through automated clearinghouse technology. The company ensures compliance with custody regulations and audit requirements.
The platform also offers the clients tools including the ability to manage payment information, review invoices and payments, and confirm changes to bills.
Currently AdvicePay is in live-beta and has 250 active users using the platform to process financial planning fees. Additional financial advisors are already waiting to be onboarded.
The new round of funding will be used to build on the company’s development and support teams. AdvicePay will also use the proceeds to expand its payment processing solution to all financial advisors.
AdvicePay co-founder and CEO Alan Moore said, “We view AdvicePay as the final piece of the puzzle for all advisors looking to serve clients that don’t yet have large asset accounts. It’s essential for financial advisors serving next generation clients to have an efficient way of billing clients, especially on a recurring basis, when many don’t have investment accounts and will be paying financial planning fees from their income instead.”
Following the investment BCM partner Yves-Marc Courtines will join AdvicePay’s board of directors.
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