Taking funding across the pond
FIS™ (NYSE: FIS) announced today that it is teaming with Liberis, a London-based fintech who provide alternative funding for small businesses, to address the small business funding gap in the United States.
Through its Working Capital solution, Worldpay from FIS merchants in the U.S. can apply online for the cash they need to grow their business and get approved in minutes. Since its launch in March, the Working Capital solution has provided more than $18m of funding through Liberis to small- and medium-sized businesses (SMBs) in the U.S.
The need for alternative funding is significant in the SMB market. Studies show that on average, only 27% of US-based small business loan applications get approved by traditional banks. As business owners seek funding from new sources, U.S. SMB merchants can use Working Capital to apply for and secure funds quicker and more easily than from traditional lenders.
“SMBs are often so busy running their shops that the traditional bank loan process takes too much time,” said Nicole Jass, SVP of product, Worldpay Merchant Solutions, FIS. “Working Capital makes it faster and easier for businesses to get access to the cash they need while allowing them to pay the funds as a percentage of their daily card transactions.”
Worldpay and Liberis originally teamed in the UK to deliver Worldpay Business Finance, which has grown significantly since its 2016 launch. With the launch of Working Capital, U.S. SMBs receiving funding can use the cash to invest in their business and drive growth. For example, Michael’s Cleaners in Connecticut has used the Working Capital solution to purchase new machinery to offer a more ecologically-friendly dry cleaning service to its customers.
“Liberis’ mission is to reshape small business finance for good,” said Howard Kramen, general manager, US, Liberis Group. “With the joint expertise and support from global fintech leader FIS, we will be able to provide the working capital that SMBs need to compete in today’s hypercompetitive market.”