• FreshBooks has secured $125 million in debt financing from Morgan Stanley.
  • The funding will support product development, innovation, and global expansion.
  • FreshBooks continues its commitment to empowering small businesses with better financial tools.

Cloud-based accounting software provider FreshBooks has announced a $125 million debt financing agreement with Morgan Stanley.

Morgan Stanley Expansion Capital and Morgan Stanley Private Credit, under the leadership of Executive Director Nick Nocito, are providing the debt financing through their managed funds.

The Canadian fintech is a Software-as-Service (SaaS) platform that specialises in cloud-based accounting for small and medium-sized businesses (SMBs), freelancers and entrepreneurs, including invoicing, receiving payments, time tracking, payroll processing, and serving the U.S. and Canadian markets.

Morgan Stanley, through its $1.7 trillion-asset investment management division, announced the deal, stating that it “will refinance existing debt and is expected to fuel the company’s continued growth.”

The funding from Morgan Stanley would enable the company to accelerate its mission of simplifying financial management for small businesses worldwide. However, Morgan Stanley is not the only major U.S. bank supporting the fintech firm.

In 2019, JP Morgan Chase made an undisclosed investment in FreshBooks and secured a seat on its board.

FreshBooks reached unicorn status in 2021 after securing $130 million in a Series E funding round led by Accomplice, which also included $50 million in debt financing.

Earlier rounds saw the company secure $30 million in Series A and $43 million in Series B funding.

This latest financing not only strengthens FreshBooks’ growth strategy but also aligns with Morgan Stanley Expansion Capital’s broader fintech investment approach.

The firm has been actively backing financial technology companies, having recently acquired a stake in business payments company Sokin in July and invested $20 million in NovoPayment in November.

Edited by Harshajit Sarmah