B2B, P2P (Peer-to-Peer), B2C lending have been the most sought after financial services for hundreds of years. Some segments are rapidly gaining traction as a credible and vital alternative to large scale banks when it comes to loans and financing. The new breed of lending companies offer affordable lending facilities especially to the SME market. Recent estimates claim that this sector could be a trillion dollar industry within the next decade.
Behalf is a prominent and emerging player in the lending space. The company gives that extra edge to small and medium businesses (SMBs) when it comes to financing. It offers loans upto $10,000 to SMBs with feasible interest rates. Behalf assesses multiple factors to determine credit worthiness of the borrower and also determines optimal payback period based on the same. The best thing about Behalf is that it considers the terms and conditions of those it serves and takes the risk if possible.
Behalf acts as a medium between SMBs and Vendors. In case an SMB requires some form of inventory for expansion, Behalf will help it attain that through its partner vendors. Vendors benefit from the deals as they more sales without having to negotiate with the SMB directly. Last year, Behalf received funding from prominent investors like Sequoia Capital and Spark Capital.
The company offers the following benefits to SMBs:
- An innovative algorithm to assess credit worthiness that’s truly fair and personal.
- Instant access to Behalf funding on signing up.
- Direct payment to vendors with no hassles around tracking or management.
- Payback schedule as per request. Up to $10,000 for 120 days.
- An affordable solution: $20-$30 per $1,000 per month to avoid high merchant cash advances charges, high fees by banks and also avoid credit cards getting maxed out.
The company offers the following benefits to Vendors:
- Innovative credit algorithms to give more purchasing power and payment flexibility to valuable customers who need options.
- The BeQuick widget and pre-approval tool to give instant credit to customers to spend without affecting the sales process.
- Direct Payment avoiding hassles of billing customers, managing receivables or declining customers’ credit.
- Direct payment collection from customers.
- Extend financing to customer and fuel the sales process at times of non-availability of funds for lending.
Here's a story from the vendor perspective (someone who uses behalf financing to get their customers to buy more) and another one below from that vendor's small business that used Behalf financing to buy more from them.
Winnie & Kat is a Malibu-based company that offers moderately priced fashion to women across America.
The company’s business model adapts traditional social selling for the today’s world, modernizing the Avon model and applying it to contemporary women’s clothing. Independent Stylists act as wholesalers and distributors, buying directly from Winnie & Kat, then serving as brand ambassadors by selling locally. As Independent Stylists build their businesses, they can step up their careers by becoming group managers of other stylists.
The company is very clear about its mission: to empower women’s entrepreneurial spirit, helping women achieve their dreams by giving them the tools to do it themselves.
The challenge they faced
There were plenty of people ready to become Independent Stylists for Winnie & Kat, but many of them were would-be first-time business owners. Finding financing was as challenging for their Independent Stylists-to-be as it is for any burgeoning entrepreneur. So even though their reimagined Avon model had potential, their Independent Stylists needed financing to help realize that potential.
How Behalf worked for them
Behalf was able to offer Independent Stylists that qualified instant access to financing that allowed them to set up their businesses and make the Winnie & Kat model work at scale. On average, Behalf's vendors see a 20% increase in sales.
"As a busy mom and entrepreneur, I am so grateful to Behalf for their easy, short term financing. Because of Behalf I was able to start my own business without straining my budget. Since it’s such a low fee, I can pay it off quickly. What's more - I always have easy financing available to help me invest in growing my business!" - Desi Bradley, Stylist and customer of Winnie & Kat.