Fundbox, a California-based technology firm, has launched a new payment solution for small businesses that will enable buyers to use credit for making purchases and sellers to get paid immediately.
Dubbed Fundbox Pay, the new solution offers buyers a credit term of 60 days, free of interest.
In addition, users will also have the option of extending their credit term for a fee.
According to Fundbox, the new solution will “unlock the trapped value” in the $4.5 trillion small business-to-business (SMB2B) transactional market in the US. Small businesses’ reliance mainly on FICO has failed to effectively predict a business’s creditworthiness, the firm said.
Fundbox COO Prashant Fuloria said: “Millions of small businesses provide free capital to other businesses on a daily basis. And yet no one has developed a credit and payment network that delivers the same radical convenience, flexibility, immediacy and overall value that consumer-facing SMBs have the benefit of using – until now.
“Our goal with Fundbox Pay is to become the point-of-sale platform for this SMB2B market and to make business transactions as simple as buying a cup of coffee.”