Innovative business funding methods are increasingly sought after by entrepreneurs. This includes deferred payments for business, i.e. the ability to pay for purchases at a later time at no additional cost (Allegro Pay Business). Now, Allegro and PragmaGO have introduced Merchant Finance, which is a quick way to not only cover day-to-day business expenses with funds from future sales but also manage funds tied up in merchandise. With the revolving limit provided by PragmaGO, Allegro merchants can manage money as if their products had already been sold and invest the funds to develop their product range on the platform. This funding method has no equivalent in the market in terms of both the process itself and availability.

“The data generated by sales on Allegro enable us to offer companies funding for their ventures on much more favourable terms than those offered by traditional financial institutions. This is especially important for companies that engage in online commerce,” says Ewa Kraińska, B2B Financial Services Senior Manager at Allegro. “Each repayment automatically replenishes the funds that can be withdrawn. Merchants who make regular repayments and actively sell on Allegro can increase their limits. In the future, we’d like companies to be able to sell on our platform without the need to engage their own capital,” Ewa Kraińska adds.

Importantly, merchants only cover the operating commission fee included in every instalment and do not need to worry about changing interest rates during the term of the loan agreement. “The aim of such initiatives at Allegro is to increase sales on the platform rather than profit on commission fees on loans awarded. This is exactly why we can offer merchants very favourable terms of funding,” Ewa Kraińska adds.

PragmaGO ensures funding security and the continuous availability of funding for merchants using both Merchant Finance and Allegro Pay Business. “As a fintech company with its own software house, we’ve implemented technological solutions that enable merchants to transfer funds to their account within 3 minutes from applying on Allegro. Based on historical data on transactions provided by Allegro, we’re able to automatically create a personalised Merchant Finance service so that merchants are offered funding terms that are optimal for their business. Merchant Finance is a technologically advanced solution that users will find simple, easily available and flexible. It enables them to fund day-to-day operations from future revenues so that it can be used in daily business,” says Danuta Czapeczko, Chief Growth Officer responsible for partner integration at PragmaGO.

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