Plastiq Inc., a B2B payments platform built with instant access to working capital, today announced Plastiq Short-Term Financing to provide Small and Mid-Sized Businesses (SMBs) with the working capital they need to drive continued growth. This offering enables SMBs to apply for funds, get an instant decision and activate their credit line in real-time, in the same experience where the business pays vendors. While SMBs represent a $9 trillion dollar Total Addressable Market (TAM) in the United States, short-term financing has not previously been available to SMBs in this easy-to-access format.
Plastiq Inc. (“Plastiq”) and Colonnade Acquisition Corp. II (NYSE: CLAA) (“Colonnade”) announced in August 2022 that they have entered into a definitive business combination agreement, which values the combined company at an estimated enterprise value of approximately $480 million at closing.
“Our new solution breaks down the bottlenecks associated with funding growth. Many small businesses struggle to pay for large expenses because of a lack of liquidity and access to working capital that is more readily accessible to large businesses and corporations. By facilitating the financing process, small businesses can keep cash on hand to remain flexible and responsive to changing market conditions,” said Eliot Buchanan, Founder and CEO of Plastiq.
With Plastiq Short-Term Financing, any small to medium-sized business can:
- Get an instant decision and access to funds to extend a payment by up to 90 days;
- Pay back flexibly in lump sum total or in installments using credit card or ACH;
- Receive competitive and easy to understand rates without commitments or hidden fees;
- Unlock cash flow to grow its business and seize opportunities – fund inventory, advertising, and day-to-day expenses.
According to Adelle Starin, CEO of Baby’s on Broadway, a specialty baby boutique based in Minnesota, “It’s quick and easy to use financing through Plastiq. I’ve been burned before when lenders weren’t straightforward. I appreciate the transparency of this solution.”
With this new solution, Plastiq is bringing new models of short-term financing not previously accessible to SMBs. By simply linking their financial accounts for assessment, businesses using Plastiq can get access to funds in real time. Approved funds are accessible immediately and can be used with flexible payback schedules depending on the payment. Businesses have already processed millions of dollars in financed payments since the offering was launched in limited availability.
To get started, businesses can register for a free Plastiq account and apply for short term financing within the payment flow and get approved in minutes.
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