FinTech: Funding Circle Launches BNPL Solution For Small Businesses

September 8, 2021 | FinTech, News

Small enterprises get a lifeline in case they are faced with unforeseen funding problems.

Funding Circle (LON: FCH), the fintech and lending platform focused on SMEs, has launched FlexiPay, a new product that allows a small business to spread any UK invoice or supplier payment over three months. Funding Circle would make the initial payment on behalf of the borrower. The business-mode “buy-now-pay-later” facility could be approved in a matter of minutes. (The Fintech Times)

Flexipay: How it works

If approved, SMEs can access amounts in the range of £2,000 and £30,000 almost immediately. The facility is an innovative product that is a step above traditional routes for availing short-term finance such as overdrafts, a credit card, or short-term loan.

Flexipay has currently opened only to selected, existing customers in a beta mode. Users availing the product pay a 3% flat fee and repay in interest-free instalments.

The very fast processing of Flexipay applications is possible because of Funding Circle’s use of machine learning/AI, and its Instant Decision Lending technology. The latter has dramatically reduced application and approval wait times.

The payments to the counterparty are made in the name of the borrower business and the funding mechanism is kept confidential.

UK small business payments market

The UK small business payments market is estimated to be worth more than £1trillion, and the initial response to FlexiPay has been favorable.

Users appreciated the product for its clarity and transparency on repayments and a simple application procedure that took only minutes to complete.

“We are really excited to be using our market-leading technology to launch FlexiPay, which is designed to support small businesses to manage and control their cash flow,” said Lisa Jacobs, Europe Managing Director of Funding Circle. “The new product enables businesses to buy now and pay later on any business spend in a way that suits them.”

Related Story: Listed Lending Platform Funding Circle Hits $10 Billion in Funds Issued

Image Credit: Flickr

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