Tradeling has announced a new credit facility for SME buyers on its platform, to support them in business recovery and continuity. The service is offered in partnership with UAE-based Invoice Bazaar, enabling business customers to benefit from a revolving credit line of up to AED 50,000 for their purchases from sellers listed on the platform.
With the revolving credit line, which sets a new model for the region, any business registered as a buyer on Tradeling.com can apply for the credit facility effortlessly on the website with approvals, subject to financial due diligence, provided in just 48 business hours. Securing the extended credit facility will enable SME buyers to free up cash, extend their payment terms and strengthen negotiations with sellers on the platform.
Muhammad Chbib, CEO, Tradeling, said, “One of the biggest challenges that businesses face in the current recovery phase of the economy is liquidity. Our purpose from the beginning has been to enable trade through innovative technology approaches. Hence, we are launching the revolving credit line feature that will benefit not just the buyers but also lend more traction to the economy as a whole. SME buyers can benefit from the facility as it helps them to manage their cash flow, while suppliers continue to be assured of timely payments. The immediate impact is that it will increase liquidity levels, especially for businesses involved in food & beverage, office supplies and health & wellness, our three core verticals that are also the most in-demand today.”
Giving buyers more control on their transaction, the credit facility is currently available for UAE-based buyers. They can expand their payment terms with the sellers by 30 days, giving a promising window to do business, make returns and meet their financial obligations without undue pressure. The new facility adds to the 5 per cent cashback on all purchases Tradeling offers for hotels, restaurants and caterers, as part of confidence-boosting measures launched by the digital marketplace to support the wider community. “With the opening of the economy, the hotel business is getting back to its feet. But the past months have not been easy, and we believe it is important to extend our support to the industry,” added Chbib.
Anand Nagaraj, Co-founder & CEO, Invoice Bazaar, added, “Our primary focus is to support SMEs by ensuring they have access to working capital. Following the COVID-19 crisis, many businesses are struggling to maintain their supplies due to lack of liquidity. The new initiative with Tradeling will offer buyers the confidence to sustain their supplies and do business seamlessly with the 30-day extended payment window helping them to plan their finances effectively.”
Applying for the trade finance offered by Tradeling is easy: Buyers registered on Tradeling.com only have to make the request on the portal, where an expert team will review the request. The buyer can use the approved credit line, which is valid for one year, for multiple transactions, helping them to expand their trade offering.
The facility is offered to returning customers who prove their creditworthiness through their first two trades paid in full in cash. From the third trade, they can convert part of their payments as credit, as per the trade finance offered, with the percentage of credit increasing with every subsequent transaction. Buyers only have to pay a nominal fee of AED 500 plus VAT to register as well as AED 200 plus VAT for transactions of up to AED 10,000, and AED 350 plus VAT for higher-value transactions.
Led by startup veteran Muhammad Chbib, Tradeling has recorded impressive growth since its beta launch in February 2020. The digital marketplace showcases thousands of products in three verticals – Food & Beverage, Health & Wellness and Office Supplies. Today, Tradeling has close to 300 suppliers from 25+ countries with gross merchandising value increasing from zero to a high two-digit million figure within three months. The cashback service offered for the hospitality sector has further energised trade, with transactions in this vertical alone growing over 25x month-over-month.
Tradeling provides ease of use for suppliers and buyers, with a rich product upload and management. It also assures a safe digital marketplace, where sellers are offered support for onboarding as well as high standards of customer service. All suppliers on Tradeling are verified ensuring trust in operations. Tradeling plans to expand its footprint to Saudi Arabia later this year and other regional markets and will also look at strengthening its operations in other core markets.