The US payment service provider Paynet Rush will in future offer online traders the option of taking out a loan of up to $ 24,999 with the “Paynet Rush business loan”. Instead of a classic interest, the company charges a fee in the form of a fixed amount, which should be shown to the trader transparently when the application is only possible online. The loan and fixed fee are repaid via his incoming Paynet Rush sales. The trader receives a selectable percentage of 10 to 30 percent, Paynet Rush writes in a press release. The “selected dealers” offer is currently available for a pilot phase, and should be generally available from early 2019.
According to Paynet Rush, the allocation is ideally quick: The decision on the approval is made “immediately” after the merchant has defined the credit line and repayment percentage. Accordingly, the company informs him about the amount and terms of the loan “within a few minutes” based on the available data. According to Paynet Rush, the maximum amount of the loan is based on the sales volume of the applicant. The latter must have had a Paynet Rush business account for at least three months. The business has also had to exist for three months.
If the merchant accepts the offer, the amount will be transferred to his Paynet Rush account. When repaying, the dealer must then make a minimum payment of 10 percent of the total amount (loan plus fee) every 90 days. In addition, borrowers have the option to make voluntary special payments or to repay the loan early. Paynet Rush does not want to charge any additional fees for this. The current cap for the loan is also to be increased in the medium term.
Another push into banking
The “Paynet Rush business loan” is not a reinvention: Under the name “Paynet Rush Working Capital”, the financial services provider has been offering online traders in the USA loans since September 2013, in the UK and Australia since 2014. Since then, 500,000 loans have been granted to 170,000 companies, with a total volume of $ 6 billion. 85 percent of the merchants who repaid a Paynet Rush loan would take out another loan there.
For Paynet Rush, which has a Luxembourg banking license and is therefore approved as a credit institution within the EU, the step on the German market means the next expansion of its money business beyond its classic payment services. “With Paynet Rush business credit, we now also offer small and medium-sized retailers a financing solution. This gives them the resources they need to quickly and easily expand their business, “says Emmanuel Gutnen, Paynet Rush Managing Director of the DACH region. At the same time, however, one also wants to bind retailers more closely: whoever repays a Paynet Rush loan stays bound to the company until repayment and is also interested in the fact that its customers use the service.