Small businesses on Ramp’s platform can now gain preferred access to Rapid Finance’s financing options, the companies said in a Wednesday (Nov. 29) press release.
“In this market, business owners are under increased financial pressure and need more access to financing to meet their capital needs,” Ramp Vice President of Partnerships Michael Cohen said in the release. “We’re proud to partner with Rapid Finance to deliver businesses the tools they need to grow.”
This partnership offers small businesses access to more financing options at a time when interest rates are high, according to the press release.
Rapid Finance has been offering financing to meet the capital needs of businesses since 2005 and has funded over $3 billion to small businesses, the release said.
The company’s new partner, Ramp, provides finance automation software that helps businesses optimize their back-end operations, per the release.
“Both of our organizations share a commitment to cultivating healthier businesses and have a deep understanding of how small businesses operate and what they need to succeed,” Rapid Finance CEO Will Tumulty said in the release.
PYMNTS Intelligence has found that only 39% of small- to medium-sized businesses (SMBs) have access to financing sources such as business credit cards and working capital loans.
This limited access to capital makes these businesses more vulnerable to economic fluctuations, particularly when interest rates rise, according to “Main Street Health Q2 2023: Credit’s Key Role in SMBs’ Plans,” a PYMNTS and Enigma collaboration.
The report also found that the inability to secure affordable financing can lead to financial strain, making it difficult for small businesses to sustain their operations and meet their financial obligations.
In another effort to better meet the needs of SMBs, Rapid Finance partnered with Mambu in May to provide a comprehensive lending-as-a-service offering that gives lenders a seamless transition from loan origination to servicing.
The integration of the two companies’ capabilities delivers a streamlined, digital end-to-end lending experience that better meets the needs of customers in the SMB market, Rapid Finance and Mambu said at the time.