Bill.com receives $15.5M for electronic accounting

Financial Partners, Citi Capital lead round of funding for billing company to continue 300% growth

The Palo Alto, Web-based bill management company Bill.com has completed a $15.5 million Series D round of funding Thursday.

Financial Partners Fund, Citi Capital Advisors and previous Bill.com investors all participated in the round of funding for the five-year-old company.

Bill.com, formerly CashView, is an accounts payable and receivable application for CPAs and small and mid-sized businesses to receive, route and pay invoices electronically.

The electronic billing company has now raised more than $40 million.

Bill.com will use the additional capital to scale operations to provide businesses of all sizes with the cloud-based tools and information.

"I've worked closely with numerous financial services companies, and I believe that what Bill.com has built over the past five years is game changing," Steve Piaker, managing director, Financial Partners Fund, said in a statement. "Bill.com is helping businesses of all sizes make the transition from time consuming and erroneous paper-based financial systems to a cloud-based system that delivers up to 50 percent gains in time and cost savings."

Over the course of 2011, Bill.com has seen its consumer base more than triple with tens of thousands of new customers and vendors putting more than $3 billion under the platform's management.

In 2011, Bill.com introduced new function for its receivables that has helped to double the business capabilities to support a full range of invoice creation tool and QuickBooks integration.

These updates and integrations allow businesses to get vendors paid on-time (or early) and can help companies leverage the discounts since the electronic payment cycle is so clear and predictable.

When vendors, especailly small business vendors, have to wait for 30, 45, 60, even 90 days for payments, the entire account cycle suffers and often leads to shaky business relationships. Electronic billing systems have provided many companies more than easy-to-manage books, it has also saved money, reduced mistakes, and created better business connections.

Other payment systems in the same space as Bills.com include the rapidly growing San Francisco startup Taulia.

Taulia has only been on the scene for two years and has already attracted more than $12 million dollars in venture money and has plans to double its revenue year over year while promoting its company focus on securing discounted rates for on-time payments.

Image Source -- Money.howstuffworks.com