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Funding Circle launches buy-now-pay-later option for SMEs

Customers will be able to apply for and split credit facilities of between £2,000 and £30,000 into three monthly chunks almost instantly.

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Lisa Jacobs/Funding Circle.

Buy-now-pay-later has been the hot fintech trend of the last year and now it seems other alternative lenders are jumping on the bandwagon.

Listed alternative lender Funding Circle has today announced it is launching its own BNPL solution for small businesses, called FlexiPay.

FlexiPay allows SMEs to spread the cost of invoices or supplier payments over three months, with Funding Circle fronting the initial payment on their behalf.

Funding Circle’s new product offers businesses financing options from between £2,000 and £30,000, with decisions made in minutes and customers able to access funds almost immediately.

“We are really excited to be using our market-leading technology to launch FlexiPay, which is designed to support small businesses to manage and control their cash flow,” Lisa Jacobs, Europe managing director at Funding Circle, said.

“The new product enables businesses to buy now and pay later on any business spend in a way that suits them.”

After soft-launching to a handful of Funding Circle’s existing customers, now new customers can join the waitlist to access FlexiPay and will be able to access interest-free financing for a three per cent flat fee on each transaction.

“FlexiPay is a brilliant idea which will help me bridge the gap between supplier payments and to negotiate better with my suppliers,” early FlexiPay user Livity Shasha, director of Intrit Facilities Management, added.

“The application was simple and easy. The repayment process and terms and conditions were very clear and I am confident with how the payments to suppliers work.”

Funding Circle is planning to roll out FlexiPay to new customers in the coming months.

As well as offering its own financing solutions for SMEs, Funding Circle was also accredited to the government’s Recovery Loan Scheme bank in May 2021, 

Funding Circle is offering businesses the 80 per cent government-backed loans of between £25,000 and £350,000, with interest rates ranging from 4.3 per cent and 12.1 per cent depending on an applicant's circumstances.

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