Two SME-servicing companies are linking up to provide small business finance. Tradeshift and Biz2Credit announced Thursday (Feb. 9) that they are partnering to provide SME financing services.
Their collaboration means Tradeshift, which provides eCommerce and eProcurement solutions to SMEs, will integrate Biz2Credit’s small business lending marketplace into its offerings for its own clients. Tradeshift customers will gain a 2 percent rebate on approved financing that they secure through the Biz2Credit platform, the firms added, and can apply for financing without leaving the Tradeshift platform.
“We are thrilled to partner with Tradshift and to be able to help their clients secure financing quickly and easily,” said Biz2Credit CEO Rohit Arora in a statement. “Through our automated online loan application platform, Biz2Credit streamlines the financing process so that busy entrepreneurs can spend more time doing what they do best, which is running their businesses.”
Earlier this week, Biz2Credit announced its latest Small Business Lending Index and found that, for the sixth month in a row, large banks have increased their loan approval rates to small businesses in Jan. 2017. Meanwhile, approval rates among alternative lenders dropped down to 58.5 percent during that month. Analysts at Biz2Credit attribute that decline to the ability for traditional banks to access the kind of technology that once set alternative lenders apart from their traditional competitors.
“The newly integrated Biz2Credit app on the Tradeshift platform provides a powerful alternative lending option for hundreds of thousands of U.S.-based small to medium-sized businesses,” said Tradeshift SVP of Financial Services Maxim Rokhline in another statement. “They now can access working capital in real time and in a way that is seamless and transparent.”
Tradeshift recently secured investment from information technology firm Wipro, which is also partnering with the company to develop source-to-pay services.