Morgan Stanley Investment Management announced today that funds managed by Morgan Stanley Expansion Capital and Morgan Stanley Private Credit have provided $125 million in senior debt financing to FreshBooks, one of the leaders in cloud-based accounting software for small businesses. This investment will refinance existing debt and is expected to fuel the company’s continued growth.

Toronto-based FreshBooks provides SaaS software that is built for service-based SMBs with a focus on the U.S. and Canadian markets. Serving as a core operating system for its customers, FreshBooks offers an easy-to-use platform that enables the company to handle everything from invoicing clients and receiving payments to managing time tracking and payroll processing.

Pete Chung, Head of Morgan Stanley Expansion Capital, and Ashwin Krishnan, North America Co-head of Morgan Stanley Private Credit, said: “We are pleased to be FreshBooks’ financing partner. We believe FreshBooks’ SaaS accounting software benefits from strong secular tailwinds, including increasing digital transformation and a shift to global e-invoicing and payments digitization. We believe FreshBooks has a tremendous market opportunity ahead of it and are confident that our growth credit and capital solutions teams are uniquely positioned to support FreshBooks in this important stage of its growth.”

“We’re thrilled to partner with Morgan Stanley’s Expansion Capital and Private Credit groups, who support our vision of empowering small business owners through technology. FreshBooks looks forward to leveraging their expertise in this next chapter of growth,” said Shaheen Javadizadeh, CEO at FreshBooks.