Numerous big fintech players are eyeing to better serve their business/merchant customers by offering new revenue-based financing services. This includes payments companies like Stripe and Worldpay. At this point in time, Sweden-based Klarna, the most highly valued startup in Europe has partnered with Liberis, the global embedded business finance platform to include revenue-based financing to its portfolio.
Through the new partnership, Klarna’s 250,000 merchants in 17 countries will have access to revenue-based financing from Liberis, through a direct integration into Klarna’s platform. They will be provided with a checkout and payment suite that enables their consumers to “buy now and pay later”. Notably, since its debut in 2007, Liberis has provided £500 million in financing to SMEs
Through Liberis, Klarna can also offer its merchant partners flexible financing solutions, pre-approved with fair and equitable payment terms that are based on their revenues and actual transactions.
The revenue-based funding options will be available immediately for global Klarna merchants in the coming months.
Rob Straathof, CEO of Liberis said: “By making finance more personalised, intuitive and accessible, we in turn empower our partners to improve engagement, satisfaction and loyalty for their own customers. This symbiotic relationship benefits everyone. We are proud to have been selected by Klarna, one of the world’s most successful and admired fintech companies, in our shared mission to support the growth of small businesses around the world. We are thrilled to expand this functionality by offering these companies a flexible financing option, embedded within Klarna’s platform, that will bolster their businesses through hard times and periods of growth.”
How does it work?
Liberis’ API-powered technology integrates directly into its partners’ platforms. These partners, typically e-commerce or payments platforms such as Klarna, can provide their end customers with a value added service of revenue-based finance, with payment terms based on their actual transaction data.
The process is seamlessly managed within the Klarna ecosystem. All the personalised, pre-approved financing offers will be displayed within their Klarna dashboard or app. The merchant can complete a quick approval and underwriting process, and receive the funds within a couple of business days of applying.
The transactions for the financing – receipt and payment can happen within the merchant’s Klarna account on paying an amount at the beginning.