The Amazons of the world have democratized access to revenue for sellers worldwide.
Still, with funds taking weeks to clear, e-commerce sellers still face enormous obstacles when it comes to scaling.
How do we democratize that fundamental part of every business?
Today’s guest, Anas Sohail, Head of Sales at Payability, has the answer. He and the team at Payability are removing the friction for sellers and democratizing access to the funding every business needs to scale.
In this episode, we discuss:
- The difficulties faced by e-commerce sellers when scaling
- The crucial difference between lending and funding
- How Payability integrates into existing ecommerce platforms
The difficulties faced by ecommerce sellers when scaling
There’s a reason that innovation is sweeping across the area of core payments in the Fintech world. ecommerce businesses are constantly being presented with value-add ideas and services which enable them to further enhance their respective revenue streams.
There are more ways to accept payments today than ever before. For sellers using existing platforms, like eBay and Amazon, the key challenge is scaling. Within this challenge are smaller challenging components:
- Access to base inventory
- Managing additional inventory
- Marketing spend
- Inventory and marketing spend form the two major spend categories for e-commerce sellers. Both are held up by platform payment delays which are designed to protect consumers first.
The crucial difference between lending and funding
Payability will either provide cash upfront or unlock cash flow in situations where sellers only receive funds weeks after-sales are processed. Cash flow is equal to working capital in many business scenarios, for both micro-sellers and mature organizations looking to scale further.
But what’s the difference between lending and funding?
According to Anas, lending:
- Involves an in-depth credit risk assessment for each and every applicant, whether as an entity, a person or both
- Features a process that often takes longer than the window in which someone needs access to funds or the ability to make a specific purchase
- Presents an additional liability to the seller
Payability’s funding process:
- Moves forward the seller’s receivables
- Requires far fewer data to drive decisions
- Presents no additional risk since the seller would receive the sales revenue within 14 days anyway
How Payability integrates into existing ecommerce platforms
In the context of a platform like Amazon, Payability will assess historical sales data as well as consumer reviews. This provides a qualitative view of the seller’s relationship with consumers, their level of good standing, and the capital for which they qualify.
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Until next time!
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