The Singapore remittance brand is expanding its Bizpay solution, which helps businesses improve cash flow by turning corporate credit cards into a funding source.
Following its Singapore launch in June, Instarem is rolling out its Bizpay service for small and medium enterprises to Australia, parent company Nium announced on Tuesday.
Bizpay, which leverages Instarem's remittance platform, enables businesses to convert unused corporate credit card limits into cash flow for their business without any interest for up to 55 days. These funds can be used to pay local and international vendors, including those who do not accept card payments.
«With social distancing measures and travel lockdowns bringing business travel and entertainment to a standstill, BizPay gives companies a chance to utilize 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,» Sanjiv Razdan, global head of commercial payments, Nium.
Loan Difficulties
Instarem said it developed Bizpay because of the challenges small and medium businesses (SMBs) face in securing loans or credits from banks or financial institutions, with Covid-19 causing more disruption to working capital cycles and intensifying legacy liquidity concerns.
According to the company, only 52 percent of SMBs in Australia managed to secure the loans they needed, even before the outbreak, citing an American Express study.
«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,» Instarem said in the announcement.
