At this month’s Payoneer Forum, Daniel Mayhew, Country Manager UK at Payoneer announced a new offering – Payoneer Working Capital. You can now get a Payoneer Capital Advance based on your marketplace sales which currently focuses mainly on Amazon in the UK, although Walmart and Wish are considered in the US.
This is all part of the Payoneer Forum ‘Go Beyond’ theme. Not only will Payoneer assist you to grow your sales overseas with events such as the Forum, meetups and of course cross border payments, but now they themselves are expanding their offering to go beyond borders, marketplaces and payments – having been a classic payments company, they now want to bring even more value to customers.
Payoneer have hundreds of thousands of Amazon customers already using them for payment services, so they really understand the marketplace and the needs of merchants trading on it. They are ideally placed to tailor their offer for marketplace merchants and to make it more flexible than even Amazon’s own offering – for instance Payoneer won’t complain if you use a Payoneer working capital loan to grow your eBay or other marketplace business.
A Payoneer working capital loan will be advanced based on your monthly Amazon store turnover. They’ll offer up to 1 month’s turnover to be paid in £s or $s directly into your local bank account. Payment terms at launch are 35% of your Amazon store turnover per month. This means that if your turnover goes up or down so you will your repayments which will typically clear the loan in three to five months and you’ll retain 65% of your income in the mean time.
One of the really cute ways Payoneer working capital works is that if you have multiple Amazon stores you can receive offers for loans for each individual store. You might decide to take all of them, none of them or pick which stores you want to take out a loan against. For instance you might want a loan against your smaller stores but not your UK store to keep the majority of your income coming in – the loan repayments are against the stores you decide to use.
Costs are always important and at launch Payoneer have pegged their interest rate to 2% reflecting an APR of around 16.2%.
Whilst it is easy for existing Payoneer customers to receive loan offers, you don’t have to be an existing Payoneer customer to take out a loan. If you use an alternative provider for your cross border payments, you can still open a Payoneer account and connect your store. if you don’t use any providers for cross border payments then you should definitely consider using Payoneer for currency exchange savings alongside any Payoneer working capital loans you take out.