For many small businesses, choosing an online lender instead of a traditional bank to access working capital is simply easier. For many, however, it’s also much faster. And a new partnership between two digital financial service providers is taking that speed to new levels.
Reports Thursday (Oct. 8) said online payments company eWAY Capital and Australian alternative lending platform Kikka want to bring access to small business loans for SMEs in just seven minutes.
In a three-step online application process, eWAY and Kikka can provide SMEs with loans of between $1,000 and $100,000, according to reports. For now, their solution will be targeted towards online retailers.
[bctt tweet=” eWAY and Kikka can provide SMEs with loans in 7 minutes.”]
The digital nature of this segment, the companies said, means the lenders can access business data to mitigate risk. Kikka and eWAY can analyze information from software tools, like expense management platform Xero or online shopping software from Shopify, to secure up-to-date, high-quality data on a company’s expenses.
“We are empowering online retailers to use the strength of their own data to take advantage of better financing options,” said Kikka Founder and CEO David Brennan in a statement. Meanwhile, eWAY Founder and CEO Matt Bullock said that the new partnership brings new opportunities for small online retailers. “EWAY Capital will allow our merchants to quickly scale anything from expanding their product range, getting a new logo or growing their social media presence and online marketing,” he said.
He added that the service acts as an end-to-end solution for SMEs, integrating into company workflows for faster, easier financing.
Alternative lending has boomed in Australia in just the last few years, thanks to what many experts describe as a gap in the market for businesses to access working capital from traditional banks, as is seen in other markets around the globe.
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