Online payment giant PayPal launched its Working Capital initiative in 2013 as an alternative method for business to access working capital much faster than through traditional means. Many small and medium-sized business (SMB) clients embraced the program and since then the company has advanced more than $6 billion in loans to over 170,000 businesses in the UK, US, Germany and Australia.
Many businesses have successfully applied for second working capital loans and advances to facilitate the growth of their businesses.
PayPal also recently revealed that it has partnered with Konfio, a Mexican online lender that utilizes unconventional data sources to facilitate fast credit assessments, in a deal that will allow PayPal to extend its Business loan and working capital programs to Mexican businesses.
Konfio has a unique model that uses the sales performance of a business to determine its creditworthiness in minutes instead of the normal two-month waiting period for loan approvals required by banks and other traditional lenders.
Mexican businesses will now have access to quick business financing through their existing PayPal accounts, which will be linked to the Konfio platform, so that they can fill the online loan application form. Once the form is submitted, the business owner will know within minutes whether they qualify for a loan, the amount they qualify for and the repayment terms.
The partnership aligns with PayPal’s mission of democratizing access to financial services through fast and efficient access to business funding for growth. The alliance will capitalize on Konfio’s core competency to transform the lives of Mexican business owners and their communities.