Designed as a solution to support cash flow management for online commerce companies, Capital Advance provides access to working capital financing for businesses selling online. Payoneer is offering 90-day payment terms, which can be extended even further for businesses using Amazon, Walmart and Tophatter to sell their goods online.
Payoneer struck a partnership with Amazon in 2015 that allows sellers on the Amazon platform to offer Payoneer as a payment solution when doing business across borders.
Capital Advance is an extension of Payoneer’s Early Payments solution, which rolled out in 2017 as the company’s first step into seller financing. According to the company, current financing offerings are not always adequate to analyze risk and underwrite loans for eCommerce business models. The Capital Advance tool does not require collateral, with financing amounts based on previous sales performance.
“We understand that access to working capital is perhaps the most difficult challenge facing eCommerce sellers looking to grow their business,” said Payoneer CEO Scott Galit in a statement. “Payoneer’s Capital Advance service provides merchants with instant access to the capital they need to reinvest into their business.”
The company pointed to areas of opportunity that online sellers can access as a result of the financing solution, including expansion into new geographic markets or product categories, and investment in marketing or additional inventory to prepare for seasonal fluctuations.
Payoneer said its existing marketplace clients are also able to extend financing to their own clients without taking on the risk.
In December, Payoneer announced a partnership with employee time-tracking company TopTracker, which is now working with Payoneer to enable employers to more seamlessly compensate their freelance workers, including across borders.