InstaReM, the consumer and SMB brand under global fintech platform Nium announced the launch of SMB fintech solution BizPay in Australia. BizPay utilises credit limits in corporate cards and converts them into working capital to help businesses make payments, including commercial rent, utilities or other supplier payments. The announcement comes shortly after the launch of BizPay in Singapore earlier in June.
SMBs often face challenges in securing loans or credits from banks or financial institutions. Even before the outbreak, only 52 percent of SMBs in Australia managed to get the loan needed. 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.
To help SMBs gain cashflows using existing credit lines, InstaReM has launched BizPay, an online platform which enables businesses to use their corporate cards as a funding source for supplier payments. Leveraging InstaReM’s existing remittance platform, business would only need to type the name of the beneficiary, the amount and currency of payment and charge the whole payment to their corporate card for funding. There is no need for the beneficiary to be directly card accepting or to be onboarded as part of the payment process. Businesses now gain full control of costs by eliminating fees and charges associated with other credit solution options.
“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,” said Sanjiv Razdan, Global Head of Commercial Payments, Nium.