Autobooks Raises $25M in Series B Funding
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DETROIT, March 11, 2021 /PRNewswire/ Autobooks, the small business payment and accounting services platform, today announced that they have raised $25 million in Series B financing, led by MissionOG. The round also includes participation from other investors including Renaissance Venture Capital, Detroit Venture Partners and Draper Triangle, along with TD Bank Group. The ability to receive payments online is vital for today s small business, said Rob Metzger, General Partner at MissionOG. As we analyzed the market, we were impressed with Autobooks unique ability to successfully partner with financial institutions. These partnerships help redefine integrated receivables, bringing immediate and significant value to treasury and cash-management services and the small businesses who most need the help.
Fraud Checks and Errors Slow Small-Business Relief Loans
The renewed Paycheck Protection Program has disbursed $140 billion this year, but many applicants have had to wait weeks for lenders to resolve problems.
Shelly Ross found herself in a bureaucratic nightmare after requesting a second loan via PayPal for Tales of the Kitty, her San Francisco cat-sitting business.Credit.Anastasiia Sapon for The New York Times
Feb. 22, 2021
The problems plaguing those seeking loans from the government’s revived small-business relief program have ranged from simple to shocking.
Some applications were stalled for weeks by typos. Overzealous fraud filters trapped others. A change of taxpayer identification rules snarled many freelancers and sole proprietors. And then there were the thousands of people turned down because they erroneously registered as having a recent criminal conviction.
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The problems plaguing those seeking loans from the government’s revived small-business relief program have ranged from simple to shocking.
Some applications were stalled for weeks by typos. Overzealous fraud filters trapped others. A change of taxpayer identification rules snarled many freelancers and sole proprietors. And then there were the thousands of people turned down because they erroneously registered as having a recent criminal conviction.
“It’s been a nightmare,” said Martha Theirl, who spent hours battling three levels of customer service support at her bank in her attempt to get a loan for her physical therapy business.
Six weeks into the second run of the Paycheck Protection Program, $134 billion in emergency aid has been distributed by banks, which make the government-backed loans, to 1.8 million small businesses. But a thicket of errors and technology glitches has slowed the relief effort and vexed borrowers and lenders alike.
Banks have diverted resources from traditional Small Business Administration lending to make Paycheck Protection Program loans, but many are taking steps to rev up 7(a) and 504 lending once the PPP winds down.