BizPay, a SMB fintech solution which was launched last month in Singapore, is now available in Australia.
It makes use of credit limits in corporate cards and converts them into working capital to help businesses make payments, including commercial rent, utilities, or other supplier payments.
BizPay is part of InstaReM, the consumer and SMB brand under the global fintech platform Nium.
The platform explained that SMBs often face challenges in securing loans, or credits from banks, or financial institutions. Even before the outbreak, only 52% of Australian SMBs managed to get the loan they needed. What’s more, delay in payments caused by COVID-19 has further exacerbated credit problems faced by SMBs. While businesses may look to card-based payments to extend payment terms, the high transaction fees and FX markup act as a deterrent for payers as well as beneficiaries.
Sanjiv Razdan, Global Head of Commercial Payments at Nium, said: “COVID-19 is proving to be a litmus test of resilience for businesses worldwide. It has caused significant disruption to working capital cycles and intensified the legacy liquidity concerns of SMBs. In such a situation, a means to generate funds using available credit resources emerges as a promising solution for businesses. Most companies in Australia would have an existing corporate credit card system from financial institutions that is used for travel and entertainment expenses.
“With social distancing measures and travel lockdowns bringing business travel and entertainment to a standstill, BizPay gives companies a chance to utilise their existing card credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their credit cards.”