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A Mastercard study highlights that SMB owners' primary concern is dealing with rising costs (47%), and over 80% of them are eager for more convenient and timely access to capital.
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Mastercard Installments allows small businesses to access installment loans via digital virtual cards for essential expenses, both online and in physical stores.
Galileo Financial Technologies, LLC, a prominent financial technology company, has recently unveiled its Galileo Buy Now, Pay Later (BNPL) offering for lenders to integrate into their services for small business clients (SMBs). This strategic initiative, in collaboration with Mastercard, empowers banks and fintech partners working with Galileo to seamlessly and securely provide installment financing solutions to small businesses through Mastercard Installments. This affords SMBs greater flexibility in managing their cash flow and facilitates larger purchases.
The financing landscape for SMBs has historically been complex, characterized by sluggish application processes and insufficient funding levels. A study conducted by Mastercard revealed that the top concern for small business owners as they navigate evolving economic conditions is the challenge of coping with rising costs (47%). Furthermore, over 80% of small business proprietors express a strong desire for swifter and more convenient access to capital (Mastercard, 2022).
Banks are uniquely poised to cultivate trust among their clients by leveraging existing data to offer SMBs more timely and responsible BNPL options. Through Galileo Buy Now Pay Later for B2B, lending partners have the capacity to assess the financial health and repayment capacity of the small business, allowing for the customization of the total number of installment payments for purchase-based financing. The Galileo loan management platform empowers clients to oversee the repayment schedule, handle disbursements to virtual cards operating within the Mastercard Installments program, evaluate interest and fees, manage payment processing, address charge-offs, and optionally report credit information.
Mastercard Installments provides immediate acceptance, enabling small businesses to access their installment loans via a digital virtual card for critical expenditures and investments, whether in physical stores or online. This encompasses essential expenditures such as capital improvements, repairs, and inventory. Millions of Mastercard-accepting merchants, ranging from small businesses to large enterprises, already embrace this payment method, benefiting from expedited receivables and higher ticket sales. These transactions benefit from the robust security and transparency inherent in the Mastercard network, complete with dispute resolution mechanisms and Zero Liability protection.