Russia state-owned bank Sber and wholesale marketplace na_polke have debuted Business Purchase in Installments for wholesale buyers, according to a Tuesday (Feb. 8) press release. Na_polke is a collaboration between Sber and IT company Evotor.
Enterprises with revenue of up to 400 million Russian rubles (about $5 million) can set up an installment plan, the release stated. The limit is 3 million rubles (about $40 million).
The installment plan allow more financial flexibility for smaller businesses to boost working capital and cut down on cash gaps, according to the release. The service will also give suppliers the ability to decrease accounts receivable (AR), boost average order value (AOV) and cut operating expenses for sales.
The ability to pay in installments will be valuable for segments with high turnover and where lots of items are purchased, such as grocery stores and cafes or coffee shops, which are among the main buyers of the na_polke marketplace, the release stated.
Alexey Shashkin, director of Small and Micro-sized Business at Sberbank, said the bank sees “the needs of entrepreneurs” and has been trying to give them the best digital services.
“This installment plan addresses one of the most acute issues small businesses have — cash shortages,” he said. “The service allows entrepreneurs to pay for an order or a purchase even if their account balance is zero. The main advantages of installment payments are speed and availability. The decision about the request is made in three minutes. Thanks to integration with the na_polke marketplace, installments are set up and payments are made online 24/7.”
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