Veem introduces BNPL option for SMBs
Veem, the online payments provider, has announced that it has launched a buy-now-pay-later(BNPL) product for SMBs which would give them access to important funds and products quickly and reliably.
The BNPL space has seen some massive growth over the last few months so much that it has started to get crowded as startups and established companies pile into this space. While most of the interest has been concentrated on providing the BNPL service to retail users, the BNPL products for SMBs seem to be the next place for growth as many businesses are always in need of funds and hence anything that could help them give access to funds and products would be most welcomed by them.
“SMBs struggle to stay open not because of poor sales or profitability. It’s because of temporary lack of cash flow, This is why we felt it was important to launch these services through Veem Capital,” said Veem Chief Growth Officer Jeff Revoy. “This will provide cash flow support for our customers in the form of paying with credit cards and access to capital with a more likely approval process than a bank. While revenue may not be available for SMBs, Veem Capital allows businesses to stay afloat, avoid bankruptcy and cover operational costs such as payroll, electricity, and rent.”
While banks and other legacy firms are indeed available for financing, the processes involved are very tedious and slow and hence it has fallen to the foot of such startups and small financial services companies to fill up this space. Veem has access to the transactions and payment history of the SMBs and so they would be able to make good choices on whom to provide cash advances to and how much as well. These cash advances can then be returned by the businesses over a period of three months in equal increments and any repayments after this period would incur charges and interest as well.
“Business might be rebounding, but what owners aren’t aware of is they still need help managing cash flow to keep their doors open,” added Revoy. “Veem is helping SMBs get out of this payment situation with the assistance of Veem Capital. Instead of looking at credit scores, Veem looks at the whole picture.”
The company was started in 2014 as a business that would facilitate cross-border payments but has since added many more features and products to its platform including invoicing and collection features with a specific focus on SMBs.