Payment service provider Mollie is launching a capital division to make it easier for small and medium-sized businesses (SMBs) to gain broader access to fast and flexible funding.
Mollie Capital is a fully integrated business financing service that provides cash advances of up to €250,000 ($240,500) to eligible SMB customers, with approval based on a cross-section of factors, including transaction history, according to a press release emailed to PYMNTS on Tuesday (Sept. 27).
Everything is processed from the Mollie dashboard, and funds for approved loans are often available on the same day. Repayments are automatically deducted as a percentage of daily sales, plus a one-time fixed fee.
“Mollie Capital is a milestone product launch for Mollie. It marks our first step towards becoming a financial services provider, whilst aligning with our goal to help small- and medium-sized merchants compete,” Shane Happach, CEO of Mollie said.
“At Mollie, we believe in SMEs’ success and want to help them grow. With lengthy, cumbersome requirements to get financing, SMEs have been continually underserved by the big banks. Mollie Capital will ensure they can access fast, flexible and easy funding that they need to flourish,” Happach added.
Mollie Capital provides small businesses with an alternative to traditional financing that manages the entire lending process on the same platform they receive their revenue.
In a trial with select customers prior to the launch of Mollie Capital, Tom Kapitein at Glamour Your Hair said it “transformed the way we access financing” as a growing small business.
“With repayments automatically repaid, we don’t have to worry about scheduling or missing repayments, so we can focus our priority on growing our business,” Kapitein said.
Mollie Capital is initially launching to select businesses in the Netherlands and Belgium, and will expand to additional markets later this year, according to the release.
Headquartered Keizersgracht, Amsterdam, Netherlands and founded in 2004 by Adriaan Mol, Mollie also has offices Belgium, Germany, England, France, and Portugal.