UN Modernizes Lending Process

Although multinational companies know the struggles of global payments, few have to deal with the sensitivities and complexities faced by the United Nations Relief and Workers Agency (UNRWA)’s microfinance department. That department this week completed an extensive reengineering project, including optimized infrastructure, better credit controls, reduced multi-currency losses and better financial and regulatory guidelines, according to InfrasoftTech, a vendor working with UNRWA.

The changes are to be used initially in the West Bank, the Hashemite Kingdom of Jordan, Gaza and Syria.

“It has been an important milestone for us to achieve complete automation of our operations in these regions,” Jane Giacaman, UNRWA chief of microfinance operations, said in a statement. “Beyond automation, the solution would help us streamline our processes. Having established a robust core platform, we now are looking to initiatives like offering savings products.

Additionally, OMNIEnterprise helped UNRWA manage multi-entity, multi-currency and multi-lingual setup, according to an InfrasoftTech press release.

Hanuman Tripathi, InfrasoftTech founder and group managing director, expressed excitement about the partnership, noting the InfrasoftTech software platform will improve the lives of millions.

“It is an honor to have worked with a UN agency providing technology for a socially relevant cause,” Tripathi said in a statement. “We thank UNRWA in supporting us to implement the software solution in some of the most challenging regions in the world today.”

Applying automation to B2B businesses

Government organizations are not alone in wanting to have a seamless and automated lending process.

Earlier this year, mobile payments company Square announced that it was ready to take part in the small-business lending.

Available to Square Register merchants, the company will provide short-term business loans based on cash flow and sales volume. The service reportedly was in pilot with thousands of merchants with millions of dollars advanced, and 85 percent of participating merchants said they would recommend the service.

Additionally, PayPal announced last week that it was extending its SMB lending program to include organizations in the UK. This is the first market outside of the U.S. to get PayPal’s lending platform. The platform, launched in 2013, has already provided $140 million to businesses across the nation.

PayPal, which has a banking license in Luxembourg, plans to offer cash advances instead of loans in Europe. This means businesses will pay PayPal only when they make money. PayPal said it will “lend up to 8 percent of what a merchant typically makes on the PayPal platform” but did not indicate further details about interest rates.

With more options becoming readily available to firms across the globe, it is becoming easier to find automated lending solutions. SMBs and other organizations are choosing to embrace automated options, and this is providing them with a variety of choices that can fit their needs.