US earned wage access start-up Immediate bags fresh funding, expands credit facility
Alabama-based fintech start-up Immediate, which offers an earned wage access solution built to “improve financial wellness and eliminate cycles of debt for employees”, has raised $16 million in its latest funding round to fuel its growth.
Immediate secures equity funding and expands credit facility
The total funding amount is made up of a mix of growth equity and an expanded credit facility.
The equity funding was led by Castle Creek Launchpad, a joint fund managed by Castle Creek Capital and Launchpad Capital, with participation from Georgia-based community bank BankSouth and local angel investors Bryan Statham and Cynthia Johnson, who will both now serve as advisors to the firm.
The expanded working capital credit facility has been provided by Alabama-based SouthPoint Bank.
Founded in 2018, Immediate says it “solves liquidity challenges for employees facing unexpected expenses by allowing them to access funds when needed, without waiting for their next paycheck”.
The company’s tech integrates with employers’ payroll systems to offer same-day and next-day bank transfers and the ability to put earnings directly on a debit card.
It claims that earned wage access is becoming “a growing expectation for employers” in the US as the tough economic climate continues to put a strain on employees’ finances.
Immediate founder and CEO, Matt Pierce, says the company is working towards “positively impacting the financial wellbeing of 1 million American workers by 2025”.
