MIAMI – Axela Technologies, a Miami-based startup, closed a $1.5 million seed round to expand their product offerings and accelerate nationwide expansion, the company announced Wednesday.
The funding round was led by Mark 2 Capital, a New York-based investment manager, who also provided the company with a revolving credit facility. Other notable investors include Dave Eisenberg, founder of Floored (acquired by CBRE), and Bobby Aitkenhead, founder of BlueKite (acquired by Xoom).
Axela develops tools and solutions that allow community associations to automate and streamline certain accounts receivable collection practices. Pulling from various data sources, the platform relies on proprietary algorithms to underwrite the risk associated with delinquent accounts and predict future defaults and trends.
Unlike traditional attorneys or collection firms, Axela will advance past-due amounts to qualifying associations based on the perceived risk profile of their receivables. This allows the association to monetize doubtful or even perceived uncollectable debts that are stuck in their accounts receivable ledgers, with the benefit of not having to take out a loan.
The company partners with property management firms and allows them to offer Axela’s products to their client base. It is a no cost solution to community associations and their management companies and serves as a buffer between community managers and problematic homeowners, which can often lead to awkward, uncomfortable and even hostile confrontations.
“Our services relieve managers and boards of directors from the timely and burdensome process of collecting from owners who pay late or not at all,” said Martin Urruela, CEO of Axela Technologies, who founded the company after serving on the board of his condo and watching helplessly as delinquency figures steadily increased month after month.
“It was very frustrating to learn that there were no effective means for collecting these past-due accounts,” Urruela said. “We would send them to our lawyer, which is the widely accepted protocol, but that didn’t work. As a result, we had to raise our maintenance fees, which just seemed unfair to the responsible owners who paid their share on time.”
Axela establishes back-end integrations with numerous accounting software providers, which enables seamless data exchange with its customers. Their web portal allows customers to not only track ongoing collections efforts, but also to customize any correspondence and action plans that affect their owner base. Axela is also an authorized data contributor to Equifax, meaning associations have the option to report both positive and negative payment information to the credit bureaus.
“Opting-in to our credit reporting service is an extremely effective way to incentivize timely payments,” said Urruela. “It forces owners to prioritize maintenance payments the same way they would a car loan or credit card payment.”
With many industry experts predicting a correction in speculative markets, associations are expected to feel the financial strain if current trends continue and the number of delinquent owners rises. According to company leaders, Axela’s product offerings can serve as a form of financial assurance during turbulent times and may play a key market role for community associations in the coming years.
ABOUT AXELA TECHNOLOGIES
Axela Technologies provides automated solutions to help community associations (Condos, HOAs and Co-Ops) manage and address their delinquent account receivables. Axela’s existing suite of products include several collections and specialty financing options designed to maximize the efficiency and effectiveness of the recovery process. Axela’s technology platform seamlessly moves collections through helpful & friendly engagement with delinquent owners that is entirely compliant with the FDCA, TCPA and FCRA. Learn more about Axela at https://axela-tech.com.