Securing loans or credit has never been easy for small and medium-sized businesses (SMBs).
Now, InstaReM, the SMB and consumer operation of Singapore-based FinTech Nium, is offering a solution to get these companies access to cash.
Dubbed BizPay, the online platform enables businesses to use their corporate cards as a funding source for supplier payments. The new service converts corporate card credit limits into capital to help businesses make commercial rent, utilities or other supplier payments.
With BizPay, the business inserts the name of the recipient, amount and payment currency and charges the payment to their corporate card. In this way, InstaReM said SMBs gain control of costs by eliminating fees and charges associated with other credit solution options.
Once a business includes their corporate credit card as a payment source on the BizPay platform, payments can be made to any corporate entity.
“In these unprecedented times that call for frugality like never before, the opportunity to maximise cash flow using resources that are already available is invaluable,” Sanjiv Razdan, global head of commercial payments for Nium, said in a statement.
Even before the pandemic, 61 percent of Singapore’s SMBs had low credit standings and fewer than 15 percent had access to the credit they required in the fast growing economy, the company said. Added delays in payments caused by the COVID-19 haven’t helped this lack of credit access.
Most Singapore companies issue corporate credit cards that are used only for travel and expenses, Razdan said.
“With lockdowns bringing travel and business entertainment to a standstill, BizPay gives businesses a chance to utilise their credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their corporate credit cards,” Razdan added.
Nium said the business arrangement will shorten the time for issuing a Visa card to just four to six weeks. The payments startup will also provide processing and onboarding services.
“Businesses in Australia are starting to recognize the need for a digital solution that will revamp existing corporate-card management systems,” said Simon Lenoir, founder and CEO of Budgetly, a banking solutions provider. “The antiquated system that involves physical paperwork to edit card-management settings, lack of rewards interface and delayed expense tracking will no longer survive in today’s age.”