Payoneer Rolls Out New Service Making Capital as Easy as Mobile Payments

February 27, 2019         By: Steven Anderson

One of the things that often ends up killing a small business is one that virtually no one considers: access to working capital. Businesses depend on making sales—whether using mobile payments tools or not—but what happens between one big sale and another? For many businesses, the lack of cash flow ends up killing the business before it can strike it big. A new release sent our way from Payoneer, meanwhile, looks to address that: an expanded new Capital Advance service.

Capital Advance is specifically designed for ecommerce operations, offering access to working capital with a quick button press. Those working on Walmart, Tophatter, and Amazon can get regular offers extended to them with 90-day repayment terms.

This kind of operation isn’t new to Payoneer, as it’s been offering something similar since 2017 with its Early Payments tool. So far, Payoneer has extended its working capital offer to thousands of different sellers, which suggests it will carry on doing so for some time to come.

Without Payoneer, the only real options online businesses had for short-term financing were either preposterously high rates or nothing at all. Since the loan terms are based on a merchant’s previous sales performance, Payoneer has a good idea of what the borrower can handle—though every month is different—and what they’re likely able to repay.

Anyone who’s started a business knows that there are always times that are slower than others, and times that are much busier than others. While working for someone else ensures a steady cash flow until, as a Scott Adams book passage once put it, you’re laid off to boost the value of someone else’s stock options, a business doesn’t have that level of constancy. A business needs short-term cash to keep it going until that next payday hits, and for newer small businesses, they may not have yet learned the lesson of keeping a reserve.

Still, Payoneer’s tools will help ensure that we have plenty of options for our mobile payments shopping use, thanks to a little short-term boost to smooth out the jagged profitability charts of many small businesses.