AdvicePay Inc., a payment processing application for financial advisors, announced that it has closed its first round of seed funding at $500,000. The company says it has created the first compliant payment processing solution designed specifically for financial advisors.

AdvicePay allows advisors to bill and collect fees directly from a client’s credit card or bank account. It is currently in live beta mode with over 250 active users and is in the process of adding more financial advisors from a waiting list.

Missoula, Mont.-based Goodworks Ventures and Front Street Capital led the investment. The rest of the funding came from the founders’ fellow financial advisors, who feel the service might be the future of the fee-for-service business model.

This latest round of capital will be used to build AdvicePay’s development and customer support teams and enable the company to expand the payment processing solution to all financial advisors.

The company’s co-founders are financial planning entrepreneurs and thought leaders Alan Moore and Michael Kitces (who also co-founded the XY Planning Network). They created the initial version of the payment-processing platform in 2016 to help more than 500 financial advisors.

“We view AdvicePay as the final piece of the puzzle for all advisors looking to serve clients that don’t yet have large asset accounts,” said Moore, who is the company’s CEO. “It’s essential for financial advisors serving next-generation clients to have an efficient way of billing clients, especially on a recurring basis, when many don’t have investment accounts and will be paying financial planning fees from their income instead.”

Learn more at AdvicePay.com.