PayUp, a Rex business, has obtained a $5 million line of credit from private working capital finance company nFusion Capital, which will allow it to process $50 million in bills.
PayUp and nFusion Finance both focus on small to medium-sized businesses (SMBs), and the new relationship will employ PayUp’s tech-enabled early payment solution to give SMBs with quick and cheap access to capital, the firms stated in a news statement on Tuesday (Nov. 22).
According to Rex Founder and Executive Chairman Peter Rex, “this partnership comes at a time when 87% of vendors do not qualify for traditional lending, even as they are dealing with higher labor and material prices due to inflation and shortages.”
“PayUp is developing technologies to handle the credit worthiness arbitrage between these providers and customers,” Rex explained. “A credit line from a partner like nFusion Capital will only help PayUp satisfy that expanding demand.”
According to the press announcement, PayUp’s early payment solution expedites payments between businesses and their customers, delivers an experience that fits into their existing invoicing procedures, and enables quick verification and predictable reimbursements.
According to the statement, the firm debuted in May and has handled thousands of invoices totalling $1.5 million in payments.
“We are thrilled to work with PayUp and offer the money they require to continue to build their market,” said nFusion Capital CEO Jason Lippman in a statement.
As previously reported in August, access to trade financing can help SMBs engage in trade by overcoming two major difficulties.
First, when entering new markets and interacting with new customers and suppliers, buyers and sellers incur enormous counterparty risks.
Second, SMBs frequently have working cash constraints as a result of customer and seller preferences on the best time to make payments.
