Horizon Technology Finance Provides $10 Million Venture Loan Facility to Finexio

Rhea-AI Summary

Horizon Technology Finance (NASDAQ: HRZN) has provided a $10 million venture loan facility to Finexio, with $5 million initially funded. Finexio, backed by JP Morgan and Mendon Venture Partners, is a B2B payments company offering AI-powered 'Accounts Payable Payments as a Service'. The platform automates and digitizes payments through various methods including ACH, virtual credit cards, and checks, integrating with existing AP and Procurement systems.

The loan proceeds will be used for general growth and working capital purposes. Finexio's platform utilizes predictive analytics to optimize payment timing and cash flow while providing fraud prevention capabilities.

Positive

• Secured new revenue stream through $10 million venture loan facility to Finexio
• Initial funding of $5 million already deployed
• Strategic investment in AI-powered B2B payments sector
• Partnership with company backed by major investors (JP Morgan, Mendon Venture Partners)

Negative

• None.

Insights

Financial Analyst

The $10 million venture loan facility to Finexio represents a strategic investment in the B2B payments space, with $5 million already deployed. This deal strengthens HRZN's portfolio in the fintech sector, particularly in the growing AP automation market. For HRZN, which has a market cap of $328 million, this loan aligns with their core strategy of providing growth capital to innovative tech companies with strong backing (JP Morgan, Mendon Venture Partners). The staged funding approach ($5 million initial) demonstrates prudent risk management. Finexio's AI-driven platform and established partnerships suggest good potential for loan repayment and possible equity kickers. The deal should contribute positively to HRZN's interest income and portfolio diversification.

Tech Expert

Finexio's AP Payments-as-a-Service platform represents a sophisticated integration of AI and payment automation technologies. Their system's ability to optimize payment timing through predictive analytics while maintaining security is particularly noteworthy in the B2B payments space. The platform's seamless integration capabilities with existing AP and Procurement systems, supporting multiple payment methods (ACH, virtual credit cards, checks), indicates strong technical architecture. Having JP Morgan as a backer adds significant credibility to their technological approach. The focus on fraud prevention through AI suggests robust risk management capabilities, which is important in the digital payments landscape.

FARMINGTON, Conn.--(BUSINESS WIRE)-- Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon” or the “Company”), an affiliate of Monroe Capital, and a leading specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced it has provided a $10 million venture loan facility to OneNetwork, Inc. dba Finexio, of which $5 million has been initially funded.

Finexio, a leader in the B2B payments industry, delivers “Accounts Payable (AP) Payments as a Service”, a fully-managed AP payments solution that leverages AI to optimize, monetize, and secure the entire payment lifecycle. Finexio’s platform automates and digitizes payments, seamlessly integrating with existing AP and Procurement systems through methods including ACH, virtual credit cards, and checks. Finexio is backed by top-tier investors including JP Morgan and Mendon Venture Partners. The company will use the loan proceeds for general growth and working capital purposes.

“Finexio’s platform exemplifies the future of payments through its ease of adoption and comprehensive digital capabilities, leveraging predictive analytics to help clients optimize payment timing, and cash flow, while providing a high level of fraud prevention,” said Gerald A. Michaud, President of Horizon. “We are pleased to support Finexio’s growth as it pioneers the payment industry's evolution.”

“We are excited to have Horizon’s support as we continue to empower our customers and partners with our best-in-class technology,” said Ernest Rolfson, CEO of Finexio. “Their support strengthens our ability to provide solutions that reduce costs and make electronic payments faster, seamless and value-generating.”

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a $19.5 billion asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.

About Finexio

Finexio is a trailblazer in the B2B payments industry, pioneering an innovative Accounts Payable Payments Infrastructure as a Service model. Embedded within the world's leading Procure-to-Pay software suites, Finexio's platform delivers a fully managed, AI-powered solution that optimizes, monetizes, and secures the entire payment lifecycle. Our comprehensive infrastructure seamlessly orchestrates payment delivery, streamlines supplier management, prevents fraud, enables payment monetization, and provides robust analytics and reporting. This unique approach transforms AP from a traditional cost center into a strategic revenue generator. Learn more at Finexio.com and follow us on LinkedIn.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216064819/en/

Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(860) 284-6450

Media Relations:

ICR

Chris Gillick

HorizonPR@icrinc.com

(646) 677-1819

For Finexio:

Steve Greene

Steve.green@finexio.com

(207) 266-4200

Source: Horizon Technology Finance Corporation

FAQ

What is the size of HRZN's venture loan facility to Finexio?

Horizon Technology Finance (HRZN) provided a $10 million venture loan facility to Finexio, with $5 million initially funded.

How will Finexio use HRZN's venture loan proceeds?

Finexio will use the loan proceeds for general growth and working capital purposes.

What technology does Finexio's platform use in its payment solutions?

Finexio's platform uses AI and predictive analytics to optimize, monetize, and secure the entire payment lifecycle, offering digital payment methods including ACH, virtual credit cards, and checks.

Who are the major investors backing Finexio besides HRZN?

Finexio is backed by top-tier investors including JP Morgan and Mendon Venture Partners.

What services does Finexio provide with HRZN's funding?

Finexio provides 'Accounts Payable (AP) Payments as a Service', a fully-managed AP payments solution that integrates with existing AP and Procurement systems.