PayUp, a Rex firm, has received a $5 million line of credit from private working capital finance company nFusion Capital, allowing it to handle $50 million in payments.
PayUp and nFusion Finance both specialize on small to medium-sized businesses (SMBs), and the new partnership will use PayUp’s tech-enabled early payment solution to provide SMBs with rapid and low-cost access to finance, according to a news release issued.
“This alliance comes at a time when 87% of vendors do not qualify for traditional loans, even as they face rising labor and material expenses owing to inflation and shortages,” says Rex Founder and Executive Chairman Peter Rex.
“PayUp is creating technology to address creditworthiness arbitrage between these suppliers and clients,” said Rex. “A credit line from a partner like nFusion Capital can only help PayUp meet growing demand.”
PayUp’s early payment solution, according to the press release, expedites payments between businesses and their consumers, provides an experience that fits into their existing invoicing systems, and enables speedy verification and predictable refunds.
The service began in May and has processed thousands of invoices totaling $1.5 million in payments, according to the statement.
“We are excited to collaborate with PayUp and provide the capital they need to continue to grow their market,” nFusion Capital CEO Jason Lippman said in a statement.
Access to trade financing, as previously reported in August, can assist SMBs in engaging in trade by overcoming two primary challenges.
First, when buyers and sellers enter new markets and interact with new customers and suppliers, they face enormous counterparty risks.
Second, as a result of customer and seller preferences regarding the best time to make payments, SMBs frequently face working cash constraints.
