During a tough economic climate, the need for flexible payments is paramount. In light of this, Koverly, a B2B paytech, has launched a new buy now, pay later, (BNPL) function. It gives businesses an extension on FX payments at no extra cost to the buyer or seller. Meanwhile, it also enables them to pay over four, eight or 12 fixed weekly instalments.
The BNPL feature adds another way Koverly is helping businesses pay each other. This is in addition to reduced foreign exchange rates (up to 50 per cent less) and no wire transfer fees (enabling firms to save up to $40 per transaction). With the new offering, they can defer FX payments by 30 days at no added cost and extend bill payments for up to 12 weeks.
“Inventory is the lifeblood for importing businesses and it is directly impacted by cash flow,” said Igor Ostrovsky, CEO of Koverly. “Our KoverlyPay offering for FX transactions is designed to give businesses enough extra working capital. In turn, unlocking at least one additional inventory turn per year. For a typical importing business this can boost annual profitability by 50-100 per cent. This is a game changer for global trade.”
Benefits of KoverlyPay
KoverlyPay ensures funds are transferred within one to three business days after checkout. US businesses using the services receive faster-customised underwriting of up to $500,000 within 24 hours. The process does not affect the applicant’s credit score. Once approved, KoverlyPay payment deferral options are seamlessly integrated into the user’s Koverly checkout flow.
Founded in 2021, Koverly has raised $7.6million in seed funding from Accomplice VC, Vinyl VC, and One Way Ventures. It has used the funds to build the first payment platform that combines foreign currency and B2B cashflow management designed for international business trade, such as importing. Koverly is currently on target to originate $70million in new loans over the next year.
Koverly currently processes $200million in annualised volume for both domestic and international payments. Global payment capabilities were introduced to the platform in July 2022. A year later, they account for 50 per cent of Koverly’s volume.
“Koverly’s option to extend payments over time has been beneficial for managing cash flow,” says Roger Scommegna, owner of Flying Blue Imports LLC. “We do a lot of work with holiday gift packages that are sold in large volume to retail outlets, like Costco. As a result, we have to pay for an enormous amount of product 10 months before sales begin. Spreading payments over several months gives us more buying power during this time. It frees up capital for other business initiatives, like sales and marketing.”
The post Koverly Adds BNPL Feature to Roster of Payment Services for US Businesses appeared first on The Fintech Times.
