B2B Payments

Online Marketplace Tradeling Offers Revolving Credit For SMBs

Electronic marketplace Tradeling is launching a new credit facility for small- to medium-sized business (SMB) buyers, partnering with United Arab Emirates (UAE)-based Invoice Bazaar, according to a press release.

The facility will let business customers access a revolving credit line up to 50,000 dirham ($13,600) for purchases from sellers listed on the platform.

By using the credit facility, businesses will find themselves able to free up cash, extend payment terms up to 30 days, and boost negotiations with sellers on the platform. By being able to extend the payment terms, companies have more flexibility to do business and make payments without "undue pressure," the release states.

According to the release, any buyer listed on Tradeling is eligible for the credit facility. Approvals can be provided in just 48 hours with the usual financial due diligence.

Tradeling CEO Muhammad Chbib said the aim is to help businesses address liquidity challenges through boosting trade and the overall economy with innovative solutions.

"[SMB] buyers can benefit from the facility as it helps them to manage their cash flow, while suppliers continue to be assured of timely payments," he said, according to the release. "The immediate impact is that it will increase liquidity levels, especially for businesses involved in food & beverage, office supplies and health & wellness, our three core verticals that are also the most in-demand today.”

In addition, the new credit facility adds a 5 percent cash back on all Tradeling purchases, like hotels, restaurants and caterers. This is a confidence boosting measure, according to the release, intended to support the community.

Chbib added that the 5 percent cash back is intended to help the hotel industry as it gets back on its feet following the pandemic.

Invoice Bazaar Co-Founder and CEO Anand Nagaraj said the idea is to "support [SMBs] by ensuring they have access to working capital."

Invoice Bazaar also recently collaborated with supply chain solutions provider RSA Global on a new inventory financing venture, allowing companies to receive financing and use inventory at their buildings for collateral.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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