Accounts payable

Plastiq announces short-term financing for SMEs

Plastiq, the US-based B2B payments platform, announced that Plastiq Short-Term Financing will provide capital to small and medium-sized enterprises (SMEs).

Plastiq’s short-term financing offer is intended for the growth of SMEs, as they will be able to request funds, receive instant decisions and activate their line of credit in real time. Short-term financing was not previously available to SMEs in such an affordable format, despite representing a total addressable market (TAM) of USD 9 trillion in the United States.

In August 2022, Plastiq and Colonnade Acquisition Corp. II announced that they had entered into a definitive business combination agreement, which brought the combined company to an estimated enterprise value of approximately $480 million at closing.

Plastiq representatives said in the company’s press release that their solution is aimed at SMBs who are struggling to pay their expenses due to lack of cash and access to working capital, which is more accessible. when it comes to large companies or corporations. Short-term financing should help SMEs to be flexible and responsive to changing market conditions, as they will be able to:

  • Get instant decisions and access funds to extend a payment for up to 90 days,

  • Repay flexibly, either in a single payment or in installments, by credit card or ACH,

  • Benefit from competitive and understandable rates without commitment or hidden costs,

  • And unlock cash flow to help grow the business and seize opportunities such as: fund inventory, advertising, and day-to-day expenses.

SMBs using Plastiq can access funds in real time by linking their financial accounts for assessment. Once approved, funds are immediately accessible and, depending on payment, can be used with flexible repayment schedules. To gain approval, companies will first need to register for a free Plastiq account and apply for short-term financing as part of the payment flow.

Plastiq services and offer

Plastiq, founded in 2012, operates in the $9 trillion B2B payments market as a financial operating system for SMBs, providing them with technology and knowledge that would otherwise only be available to large enterprises.

Plastiq helps companies improve their cash flow by providing instant access to working capital, while automating and giving control over all aspects of accounts payable and receivable.

With over $140 in funding raised, Plastiq is backed by investors such as: Kleiner Perkins, B Capital Group and Khosla Ventures.

Recent Plastiq integrations and partnerships

In January 2021, Plastiq announced the integration of Intuit QuickBooks Online into its payment platform. It helps businesses become more efficient and automate their accounting systems by importing invoices directly from QuickBooks and quickly identifying/filling in essential information such as: vendor, amount due and invoice due date. A clear separation of payments is made, as once an invoice is paid through Plastiq, the payment information is then exported into Quickbooks and it differentiates the part of the payment applied to the invoice from the Plastiq transaction fee.

In March 2021, Plastiq and Ramp announced a partnership to allow businesses to pay for their expenses with the Ramp card. With Plastiq allowing customers to pay by credit card anyway, and Ramp being a business card and expense management platform, customers can charge expenses to their Ramp card, while leveraging Plastiq to instantly pay suppliers via ACH, wire transfer or check.

This partnership allows businesses to track and manage their expenses in one place.