InstaReM, the consumer and SME brand under global fintech platform Nium announced today the launch of a new service that helps Singaporean SMEs maximise their cash flow.
The service, termed BizPay, utilises credit limits in corporate cards and converts them into working capital to help businesses make payments, including commercial rent or utilities or other supplier payments. Businesses will continue to enjoy commercial benefits that may be available on their corporate credit cards, such as membership rewards or cash rebates.
Securing loans or credit has never been easy for SMEs— the absence of a stable and profitable portfolio is seen as a drawback by banks and financial institutions. Even before the pandemic, 61 percent of Singaporean SMEs held low credit standings and not more than 15 percent of SMEs in fast-growing economies had access to the credit they required. The additional delays in payments induced by the pandemic have only aggravated this dearth of capital. 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.
To help SMBs gain cashflows without the need to go for yet another bank application, InstaReM has launched BizPay, an online platform which enables businesses to use their corporate cards as a funding source for supplier payments. Leveraging InstaReM’s existing remittance platform, business would only need to type the name of the beneficiary, the amount and currency of payment and charge the whole payment to their corporate card for funding. There is no need for the beneficiary to be directly card accepting or to be onboarded as part of the payment process. Businesses now gain full control of costs by eliminating fees and charges associated with other credit solution options.
“In these unprecedented times that call for frugality like never before, the opportunity to maximise cash flow using resources that are already available is invaluable. Most companies in Singapore have an existing corporate credit card system that is used only for travel and expenses. With lockdowns bringing travel and business entertainment to a standstill, BizPay gives businesses a chance to utilise their credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their corporate credit cards,” said Sanjiv Razdan, Global Head of Commercial Payments, Nium.
“This solution is unique because it does not require the beneficiary or the supplier to be directly card accepting. It removes the need for any supplier to be onboarded as part of the payment process. Once a business includes their corporate credit card as a payment source on BizPay platform, payments can be made to any corporate entity as beneficiary in multiple currencies at very affordable and competitive pricing.”