Buy now, pay later (BNPL) company Sezzle and embedded finance platform Liberis have partnered to help US small businesses raise capital.
According to a press release on Wednesday (August 28), the partnership revolves around Sezzle Capital and aims to help small and medium-sized businesses (SMBs) access funding without sacrificing their own capital.
The program aims to provide “flexible financing” to small businesses in the U.S. and will eventually launch in Canada. Sezzle Capital will help these businesses access capital for a variety of business purposes at a time when most small businesses are anxious about financing.
“As we expand across the U.S. and Canada, we choose to work with partners that are preferred and trusted by small and medium-sized businesses,” said Liberis CEO Rob Straathof. “Working with Sezzle will enable us to provide fast, flexible financing through our platform to both early-stage and mature corporate clients.”
For small and medium-sized businesses, access to working capital is not just a matter of convenience, it is a necessity.
“It is the foundation of their ability to manage day-to-day operations, respond to challenges and seize opportunities for growth,” PYMNTS wrote this month. “Without it, even profitable companies can struggle to survive, especially in today’s fast-paced, unpredictable economic environment.”
A look at the U.S. government’s Small Business Administration (SBA) website reveals that the agency is expecting strong demand for its Working Capital Pilot (WCP) program, especially as many small businesses are having difficulty accessing traditional working capital loans.
The SBA projects it will approve about 270 WCP loans totaling $337 million in 2025 alone. Half of those loans would have been approved as SBA 7(a) Export Working Capital Program loans or SBA 7(a) CAPLines loans, and the other half are new loans, according to the agency.
According to a PYMNTS Intelligence report, “The Future of Credit: Why Small Businesses Prefer Business Credit Cards for Short-Term Financing,” about 8.5% of small businesses say they have ready access to working capital loans from banks.
“More than half of respondents said they will consider raising new capital through 2024,” PYMNTS wrote. “Among those considering raising new capital, more than 26% will consider using an online lender, and about one-third will use a large national bank.”
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Read more: B2B, B2B payments, commercial payments, embedded finance, lending, Liberis, loans, news, partnerships, PYMNTS news, sezzle, Sezzle Capital, small business, trending news, B2B trending news, working capital
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