Alibaba have announced the launch of pay later solution for the US sellers buying merchandise on the marketplace.
The new financial service, which is powered by Kabbage, a payments supplier is designed to promote a business-to-business (B2B) global trade and attract more US merchants to join the marketplace.
Pay later solution allows US business on Alibaba to obtain up to $150,000 (£116,592) of financing for their orders. Sellers can apply for free via Alibaba.com or the Alibaba.com mobile app where they will be asked to submit details such bank account, accounting software and payment processors.
Merchants have a six months period to pay-off the loan with a 1.25% rate deducted from their account each month.
“Financing at the point of sale requires a fully automated solution that can handle the immense volume of daily transactions that occur on Alibaba.com. We are incredibly impressed with the service and value that Alibaba.com delivers to American businesses and want to do all we can to support their important mission. The collaboration with Alibaba.com has already delivered millions of dollars of purchasing opportunity to U.S. small businesses and showcases the adaptability of our technology.”
-Rob Frohwein CEO Kabbage
