Behalf, which provides alternative financing and payment solutions for B2B sellers and buyers, has been selected by Newegg to provide flexible financing options for customers, Behalf announced in a Wednesday (Nov. 11) press release.
By using Behalf, Newegg, which works in tech-focused eCommerce, can now offer customers a way to finance and pay for purchases on their own schedules, with monthly or weekly installment pay options.
NeweggBusiness offers customers detailed product information, peer reviews, expert opinions, product tutorials and networking options with other users, and the new partnership with Behalf will “apply the same philosophy to the purchasing experience,” according to the release.
“Financing has always been a challenge for small and medium-sized businesses, and that is especially the case today due to COVID,” Behalf CEO Rob Rosenblatt said in the announcement. “Access to capital is critical to the success of these businesses and Newegg is addressing the problem head on for its customers with Behalf. Our solution enables NeweggBusiness to offer flexible financing programs and receive payment upfront, without the need to take on any of the financing risk. Their business customers benefit from access to Net Terms and extended financing, providing them with added purchasing power with each approved transaction.”
The release also notes the credit crunch facing small businesses, with a Biz2Credit report finding big banks only granted 13.6 percent of small to medium-sized enterprise (SME) applications in August 2020, compared to over 28.2 percent in December 2019. For small banks, lending has dropped even more drastically, falling from 50.6 percent last December to just 18.2 percent by August this year.
Newegg has a history of evolving with the times, as reported by PYMNTS, with its 2011 pivot to letting other sellers use its eCommerce platform followed by the 2019 decision to add a way for retailers to sell directly to the consumers, bypassing Newegg through setting up websites for a fee for companies to do so. Now, it’s working on reaching non-tech brands to try and reach non-tech brands to expand that service.
Selected by Fintech Tube