Veem Introduces Two Short-Term Loan Options To Boost Cash Flow for Small Businesses

In response to small and mid-size businesses’ need for capital as the economy re-opens in the wake of the Covid-19 pandemic, payment-technology provider Veem Inc. on Thursday introduced two new short-term lending options as part of its Veem Capital offering.

The first option, Pay Later, allows small and mid-size businesses to apply for a short-term loan from Veem without having to provide the same level of documentation required to prove their creditworthiness for bank loans, such as tax returns, bank statements, and documentation of total assets. Instead, Veem qualifies merchants on such factors as their business performance, receivables, and transaction volume. Loans can be approved in days, as opposed to weeks for a traditional bank loan. Merchants have three months to repay the loans.

“We are hearing of a need for small and mid-size businesses to improve their cash flow, especially as they re-open, for things such as adding more inventory or hiring new workers,” says Jeff Revoy, chief growth officer for San Francisco-based Veem. “With the cost of goods and materials up and freight costs on the rise, small businesses have a need for more cash. Banks typically don’t make short-term loans because they are unprofitable for them.”

The second lending option, Pay with Card, allows merchants to pay for goods and services from vendors with a credit card via the Veem platform. Having the option to pay with a card enables the business to take advantage of the float that comes with a credit card’s billing cycle, which can be 28 to 31 days, depending on the card issuer.

“Business might be rebounding, but what owners aren’t aware of is they still need help managing cash flow in order to keep their doors open,” Revoy says.

Veem, which offers payment services intended to establish and strengthen partner and supplier relationships, declined to comment on whether it plans to issue credit cards in the future as part of Pay with Card. Founded in 2014, Veem services more than 300,000 businesses in more than 100 countries.