Now Corp

About Now Corp

Now Corp, operating as NowAccount, provides a B2B payment solution designed to accelerate cash flow for small and medium-sized businesses. The company was founded in Atlanta, Georgia, in December 2010 by serial entrepreneurs Lara Hodgson, John Hayes, and Stacey Abrams. The inspiration for the company came directly from Hodgson and Abrams's previous entrepreneurial venture, a children's beverage company called Nourish. While running Nourish, they secured large orders from major retailers but faced a near-fatal cash flow crisis due to the standard 30 to 90-day payment terms, which prompted them to create a solution.

Hodgson, an aerospace engineer by training with an MBA from Harvard, serves as CEO and has a diverse background that includes co-founding a company with Shaquille O'Neal. Hayes had previously founded Peachtree Accounting Software, bringing deep financial software expertise to the team. Abrams, widely known for her political career, was a co-founder in what was her third entrepreneurial venture with Hodgson.

The core of the business is the NowAccount, a platform that functions similarly to a credit card merchant processor for B2B transactions. It allows businesses to submit their invoices and receive 100% of the invoice value almost immediately, typically within one to two days, for a one-time service fee ranging from 2.5% to 5%. This model is distinct from traditional factoring or loans; it is structured as an asset purchase, which does not add debt to the client's balance sheet. The business's customer then pays the invoice on their normal schedule, but the payment is remitted to NowAccount's lockbox instead. This service, which the company terms "Revenue On Demand," is designed for B2B companies with up to $50 million in annual revenue, serving industries like consulting, manufacturing, and professional services.

The company's business model involves purchasing receivables and then securing its own large lines of credit to fund these purchases, with a long-term strategy to bundle these receivables into asset-backed securities. Now Corp has processed over $700 million in invoices for more than 1,000 businesses. The company has secured significant funding, including a $9.5 million Series A in June 2021 and a subsequent $29 million raise in October 2021, which consisted of a $25 million credit facility and $4 million in equity.