A $5 million line of credit from private working capital finance company nFusion Capital has been secured by PayUp, a Rex subsidiary, enabling it to handle $50 million in bills.
Small to medium-sized businesses (SMBs) are the focus of both PayUp and nFusion Finance, and their new partnership will use PayUp’s technologically advanced early payment solution to provide SMBs with easy access to capital.
“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,” says Rex Founder and Executive Chairman Peter Rex.
In order to handle the credit worthiness arbitrage between these suppliers and clients, PayUp is creating technology, according to Rex. “A credit line from a partner like nFusion Capital will only help PayUp meet that growing demand,” the statement continued.
The early payment solution from PayUp, according to the press release, speeds up payments between companies and their clients, provides a service that integrates with their current invoicing processes, and enables quick verification and predictable reimbursements.
The business made its debut in May, and since then, it has processed payments for 5,000 invoices totaling $1.5 million.
According to nFusion Capital CEO Jason Lippman, “We are thrilled to work with PayUp and offer the money they need to continue expanding their market.”
Access to trade financing can assist SMBs in engaging in trade by overcoming two significant challenges, as was previously highlighted in August.
Buyers and sellers face significant counterparty risks when they enter new markets and deal with new clients and suppliers.
Second, due to buyer and seller preferences regarding the ideal time to make payments, SMBs frequently experience working cash constraints.
