Kabbage, the financial services, technology, and data platform company for small businesses, announced Monday (Jan. 14) that it is powering the Pay Later program for U.S. buyers on Alibaba.com.
In a press release, the company said it is powering the Pay Later program for the online platform for global B2B trade. Pay Later enables small businesses in the U.S. on Alibaba.com to get up to $150,000 of financing for orders. The company said its program improves cash flow and makes global commerce more accessible for small businesses in the U.S.
“Financing at the point of sale requires a fully automated solution that can handle the immense volume of daily transactions that occur on Alibaba.com,” said Kabbage CEO Rob Frohwein in the press release. “We are incredibly impressed with the service and value that Alibaba.com delivers to American businesses and want to do all we can to support their important mission. The collaboration with Aliababa.com has already delivered millions of dollars of purchasing opportunity to U.S. small businesses and showcases the adaptability of our technology.”
Small businesses can get a funding decision during the checkout process. Pay Later creates a six-month term loan with rates that Kabbage said are as low as 1.25 percent each month. There are no fees to apply, no fees to keep the line of credit, no transaction fees when ordering and no early repayment fees associated with Pay Later, noted the company. Kabbage said that it began beta testing Pay Later in June of 2018. It polled 1,000 customers since then and found 68 percent said Pay Later enabled them to increase order sizes on the site.
“We recognized an opportunity to give our customers a convenient financing solution that allows them to improve their cash flow at competitive rates, so they can have the cash they need to grow their businesses,” said John Caplan, Head of Alibaba B2B in North America in the same press release. “We are delighted to be working with Kabbage to empower our SMB customers to source at greater volumes or improve their cash flow to invest in other areas of their businesses.”