InstaReM has announced a new service that helps SMEs in Singapore with their cash flow. The service termed BizPay, utilizes credit limits in corporate cards and converts them into working capital, according to a release from the company.
InstaReM, the consumer and SME brand that is part of the fintech platform Nium, states that securing loans or credit has never been easy for SMEs. Even before the pandemic, 61% of Singaporean SMEs held low credit standings and not more than 15% of SMEs in fast-growing economies had access to the credit they required. The additional delays in payments induced by the pandemic have only aggravated the situation. While businesses may look to card-based payments to extend payment terms, the high transaction fees and FX markup act as a deterrent for payers as well as beneficiaries.
To help these firms without the need for another bank application, InstaReM has launched BizPay, an online platform that enables businesses to use their corporate cards as a funding source for supplier payments. Leveraging InstaReM’s existing remittance platform, businesses would only need to type the name of the beneficiary, the amount and currency of payment, and charge the whole payment to their corporate card for funding.
“In these unprecedented times that call for frugality like never before, the opportunity to maximise cash flow using resources that are already available is invaluable. Most companies in Singapore have an existing corporate credit card system that is used only for travel and expenses. With lockdowns bringing travel and business entertainment to a standstill, BizPay gives businesses a chance to utilise their credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their corporate credit cards,” said Sanjiv Razdan, Global Head of Commercial Payments, Nium.
Razdan explained that the solution is unique as the beneficiary does not need to be card accepting.