For individuals and small businesses that are having trouble covering the rent during the COVID-19 economic collapse, but might have a credit card or line of credit with available funds, Fiserv says it has a solution.
The company said its new FlexLine Advance program will allow consumers and businesses to “swiftly and affordably access funds from existing credit lines on credit cards through their financial institutions.”
Fiserv is a global provider of payments and financial industry technology solutions.
“In the current COVID-19 environment, many consumers and small businesses are seeking out practical options that allow them to meet ongoing expenses,” said Chad Peck, Fiserv’s vice president of credit card services. Peck added in a prepared statement: “FlexLine Advance ensures nothing is standing in the way of getting funds into the hands of people and firms who need them as quickly as possible.”
The company said the program will provide “an alternative to traditional small-dollar loans that allows cardholders to more easily access available credit with no additional credit application, adjudication or origination fees.”
Consumers can use these funds to pay the bills that a credit card typically can’t be used for, such as rent or mortgages, utilities and other living expenses. For their part, small businesses can satisfy payroll, rent, utilities, and supplier and insurance obligations.
Fiserv said its research shows that 72 percent of consumer credit lines are currently unused, “representing an average of over $4,000 available per account.” The company added that some 83 percent of small-business credit lines are untapped, representing an average of over $15,000 available per account.
The new Fiserv program allows participating financial institutions (FIs) to define up to three lending options, including interest rate and payment period. Cardholders then pick the plan they want and the desired loan amount. The money can be sent electronically to a bank account, where it would be deposited “within two business days,” Fiserv said.
As reported by PYMNTS, last month Fiserv promoted Frank Bisignano to CEO. The company said Bisignano brings more than 30 years of senior leadership experience. He has served as president, chief operating officer and director since the company completed its acquisition of First Data last summer.