Float Financial Expands Business Banking Suite Following $100 Million Debt Financing
Toronto-based financial technology company Float Financial Solutions Inc. has announced a significant expansion of its business banking products after securing nearly $100 million through two debt facilities. The funding, obtained from Silicon Valley Bank (a division of First Citizens Bank) and a major Canadian tier-1 bank, will enable the fintech platform to enhance its offerings for Canadian businesses while maintaining competitive interest rates.
Maintaining High-Interest Products Amid Economic Challenges
Despite a year of consecutive interest rate cuts from the Bank of Canada, Float has committed to continuing its high-interest business account product that offers up to four percent interest on every dollar. The company has also increased its base interest rate from two to three percent, claiming this represents the highest available interest rate in Canadian business banking.
"Float is bullish where others may be bearish. We're betting on Canadian businesses," said co-founder and chief executive Rob Khazzam in a press release announcing the funding.
Expanding Credit Products and Financial Tools
The debt facilities will support Float's expansion of credit products, including corporate cards with limits reaching up to $3 million. The platform currently serves more than 6,000 Canadian companies with a comprehensive suite of financial tools that includes:
- High-limit corporate cards
- Automated expense management systems
- Business banking services
- Bill payment solutions
- Foreign exchange capabilities
According to the company, the funding will help extend flexible working capital to thousands more Canadian businesses and unlock "north of $1.5 billion in annualized spending power."
Addressing the Capital Confidence Gap
The funding announcement comes at what Float describes as a "critical inflection point" for Canadian businesses. The company recently released a report indicating that while revenues increased by five percent in Canada in 2025, margins were compressed by rising costs. Many companies avoided taking on new debt despite growth opportunities, creating what Float terms a "capital confidence gap."
"With its innovative platform and suite of financial products, Float aims to deliver industry-leading rates to help local businesses and, in turn, bolster growth across the Canadian economy," said Brian Foley, market manager of the national fintech group at Silicon Valley Bank.
Security and Previous Funding
Float emphasizes that customer funds are protected by Canada Deposit Insurance Corporation (CDIC) insurance up to $100,000 and are held in segregated trust accounts at a tier-1 Canadian bank. This latest debt funding follows the company's previous $70 million Series B round led by Goldman Sachs Alternatives in January 2025.
The expanded product offerings and continued high-interest rates position Float as a significant player in Canada's competitive fintech landscape, particularly for businesses seeking alternatives to traditional banking solutions during challenging economic conditions.
