As businesses struggle amid the COVID-19 pandemic, online sellers will get much needed help through the Lazada Seller Financing program.
Ecommerce giant Lazada and FDFC, the fintech company behind digital credit app BillEase, have launched the financial relief program for micro and small businesses. Lazada sellers can apply for financing and enjoy a digitalized application process via BillEase for Business.
Helping small business owners
“Lazada’s commitment and key priority during this extraordinary time is to support our sellers and prepare them for when business operations resume,” Lazada Philippines CEO Ray Alimurung said in a press statement.
Micro and small businesses are particularly vulnerable in the face of business disruption.
“The spread of COVID-19 is creating challenges to most businesses today and in particular to online merchants. That’s why we launched this program as part of our commitment to financing small business owners during this difficult period,” FDFC CEO Georg Steiger said in a press statement. “Lazada has been our partner since 2017. It’s our priority to help their online sellers continue their operations, especially those who are providing essential goods to consumers and frontliners.”
Last year, FDFC spun out a financial service platform dubbed as BillEase for Business. This platform supports the growth of micro, small, and medium enterprises (MSMEs) in the country.
BillEase for Business focuses entirely on small business lending. The goal is to simplify business loan applications by making the process fully digital. The fintech company has already provided credit for several hundred clients.
Working capital for online sellers
How can online merchants avail of the Lazada Seller Financing program?
Existing online merchants can apply online for a loan based on their sales record prior to the lockdown. The loan program is open to Lazada sellers who have operated for at least six months on the platform.
Online sellers can use their pre-enhanced community quarantine Lazada transactions as a basis to get a working capital loan. It will take just one banking day to process the loans, priced between 2% and 3.5%. Successful applicants can enjoy an extra one-month grace period for loan repayment as part of the program.
Lazada and BillEase have also announced the extension of their 0% installment program for consumers availing of essential goods until April 30.