Fintech Storfund has announced a new partnership with TikTok Shop that will introduce the first fully embedded cash flow solution in a major US marketplace, an innovation set to benefit sellers with high-growth potential on the social media app.
Called Daily Advance, the new product will see Storfund advance money to sellers as soon as they ship their goods. This addresses a significant disparity in the fast moving world of ecommerce where customers can buy online in minutes, but marketplaces can delay payouts to sellers for up to 60 days. Money is legitimately held back by all marketplaces to ensure that sellers have funds available for refunds but this can disrupt their ability to restock and scale up.
The partnership sees TikTok Shop embed the proprietary solution end-to-end within its platform, the first major marketplace in the US to do so. By giving its fast-growing sellers a way to access quicker payouts, Daily Advance will assist TikTok Shop to further disrupt the ecommerce industry, as the social media app continues to support its sellers and its own growth trajectory.
George Brintalos, Storfund’s CEO, said: “As we’ve seen on the almost 50 marketplaces where Storfund is available globally, improved cash flow is win-win for sellers and marketplaces. We expect Daily Advance to be instrumental in driving seller growth, and therefore TikTok Shop’s growth. We want Daily Advance to be the norm on every marketplace worldwide, so our partnership with TikTok Shop is a huge milestone for us and one that we trust will prove hugely beneficial to U.S. sellers too.”
Sellers using Daily Advance have benefitted from faster access to funding. Jordan Ellingson’s company Valley Chase in Minnesota sells on TikTok Shop. He explains that it can take as little as a week to go from ordering to selling, particularly if he hosts a livestream - but he can typically wait another week to get paid. Jordan said: “For a seller who’s looking to scale their business and ultimately reduce their stress around cash flow, Daily Advance is a game-changer!”
Livestream shopping is proving a success for TikTok Shop in the U.S., with SMEs able to use content to connect with buyers, rather than rely on searches; in June this year TikTok Shop hosted its first $1 million livestream for one of its sellers.
For Jordan’s company, Daily Advance has reduced his cash cycle from 14 days to seven. “The ability to forecast and plan has made a tangible difference in my day-to-day operations,” Jordan added, “I can schedule orders and not have to say ‘I think I should get a payout tomorrow’, because I can count on Storfund.” By halving the cash cycle, Valley Chase can restock and double sales over twelve months.
Storfund is the only provider of Daily Advance to have cracked the complexity of ecommerce cash flow on a global scale, first developing the tech to integrate with multiple marketplaces, then creating an embedded solution which can be deployed by marketplaces and even platforms such as payment providers.
“Unlike traditional financial products, Daily Advance is built for the intensive speed and volume of ecommerce transactions, putting high-growth sellers in control of their working capital,” said Storfund’s Chief Revenue Officer, Oliver Whelan. “There’s virtually no limit to what businesses can receive, whether they make sales of $10,000 or $1m in one day, Daily Advance will enable them to maintain their momentum.”
SMEs are the backbone of the US economy and online marketplaces offer business owners a significant opportunity to reach new, younger and even global consumers. If ecommerce has revolutionized how people shop, Storfund’s Daily Advance promises to revolutionize how sellers can grow.