FinTechs Offer LATAM SMBs Speedy Access to Credit in Emerging Markets

When Tribal Credit saw that many of its customers in Mexico also have entities in Chile, Columbia and Peru, the B2B payments and financing company decided to expand into those countries, as well.

Tribal is launching services in those nations this month and plans to continue that expansion and move into other Latin American countries in 2022. The company has observed that small businesses in the region struggle to get access to credit and payment rails because the market is highly regulated and a handful of banks control most of the relationship.

“So, what we want to do in these Latin American markets is to open up access to credit,” Arvind Nimbalker, global head of product at Tribal Credit, told PYMNTS. “We have a proprietary algorithm which helps us underwrite these companies and give them access to credit, and using that credit, they can use the Tribal platform to make payments to virtually and literally anybody in the world.”

Meeting Local Needs

The Tribal platform allows companies to make payments to employees, suppliers or merchants — online or in-store. It also takes local needs into account. For example, in Mexico, Tribal Credit integrated the platform with the tax authority. Beyond that, the platform provides a one-stop shop where companies can manage their expenses, integrate with their enterprise resource planning systems and move information around.

While it will focus its efforts on Latin American in 2022, Tribal Credit intends to expand globally to other emerging markets later. “We definitely have the skillset to understand local markets and to grow rapidly, not just in [Latin America], but anywhere in the world,” Nimbalker said.

Speeding Up Access to Credit

When it comes to the product, Tribal Credit talks with customers in each local market to understand their needs and then customizes the product with features that meet those needs.

“We make it easy for them to decide whom to pay, when to pay, how to pay and how to manage their expenses,” Nimbalker said. “If we can see from their information that they need access to more credit, then we can grant them those kind of credit and repayment terms.”

Any company that wants to compete and thrive in the global economy needs to be able to get access to finance — and to cash in general — quickly. That gives them the agility and speed they need to compete effectively.

“This is where a company like Tribal can come into play and really speed things up dramatically,” Nimbalker said. “If it normally takes a company a month to get access to credit, with Tribal they would get that access in a day or even less if we have all the information in place and we automatically recommend actions they should be taking.”

Using Innovative Technologies

The company’s entry strategy is corporate cards, providing new customers with a credit card that is powered by Visa and accepted worldwide. Beyond that, Tribal’s value proposition is centered on its international payment network, where it is constantly making advances in using innovative technologies like blockchain and crypto. On Thursday (Dec. 9), the company announced that it has partnered with Stellar, which offers payment rails over blockchain.

“Tribal as a company is very hyper-focused on customer needs in these emerging markets,” Nimbalker said. “We have a track record of really helping our customers in whichever market we have entered. Hopefully, as we expand into Columbia, Peru and Chile, companies will appreciate the fact that we’re really going all out to meet their needs.”