Shopee, BillEase launch seller loan program to help MSMEs

E-commerce platform Shopee and fintech firm First Digital Finance Corporation’s (FDFC) digital credit app BillEase on Thursday announced a seller loan program to help micro, small and medium enterprises (MSMEs) registered on the platform.

In a statement, FDFC said the seller loan program aims to help Filipino MSMEs recover from the adverse effect of the enhanced community quarantine (ECQ) and the general business impact of the COVID-19 outbreak.

The program, which runs for a full year, allows Shopee sellers who have been operating for at least six months and ramping up their working capital to apply for a loan based on their sales record prior to the implementation of the ECQ on BillEase for Business, according to the fintech firm.

Successful applicants can avail as low as P20,000 up to P2 million commensurate of their sales transactions and enjoy an extra one-month grace period for the loan repayment and up to 12 months maximum loan term.

“In addition to our recently launched Seller Support Package, we’re also offering this financing program to allow business owners to apply for loans with flexible payment terms,” Shopee associate director Martin Yu said.

“With BillEase as our financing partner, we will be able to provide support and help to thousands of business owners who are seeking financial relief,” Yu said.

BillEase for Business tracks the applicant’s cash flows, sales performance, and purchase orders as a basis for approving working capital loans as they expect credit needs to grow with the business.

The interest rates for the program are priced between 3 to 3.5% which allows the fintech company to make additional loans to help other small businesses.

“We understand that Shopee sellers are still navigating the effect of ECQ and they are looking for partners that would look after their business financially,” FDFC CEO Georg Steiger said.

“Our Shopee Loan Program will help these sellers who are either producing essential goods to continue operations amid the increasing demand or those preparing to recover after the quarantine,” Steiger said.

BillEase for Business is a financial service platform under FDFC’s BillEase brand which focuses on small business lending.

The platform simplifies manual business loan application to one that is fully digital leverages business data. The fintech company has provided MSMEs credit for several hundred clients following BillEase for Business’s launch in 2019.

The loan program comes as Shopee announced its P200-million seller support package to help up to 80,000 MSMEs.

With banks tightening their underwriting standards, more and more entrepreneurs are turning to fintech platforms that leverage technology to aid small businesses during the coronavirus crisis, FDFC said. — BM, GMA News