As Staples looks to grapple with an unstable office product market, the company is looking for business in SME lending.
Staples announced plans to enter into small business lending following its recent merger with Office Depot earlier this month, a deal which, if cleared by the Federal Trade Commission, leaves just one major chain retailer in the office supply market, a sign of struggling times for the industry.
Reports emerged Tuesday (Feb. 24) that the office supply chain will work with a technology company to launch its new small business lending program, though Staples did not say which company with which it plans to partner. Further details on the plan are expected when trading begins on the Nasdaq Wednesday (Feb. 25).
Bloomberg said that Staples revealed plans for an SME loan operation during its fourth-quarter earnings report Tuesday.
Staples has recently strengthened its relationship with Apple since allowing customers to pay with Apple Pay and releasing app for iPad and iPhone. In the company’s earnings call last November, Staples CEO Ron Sargent highlighted the corporations’ ongoing partnership.
Small business funding is increasingly an attractive path for banks and businesses, though SMEs have seen ups and downs when it comes to securing capital from major banks. In a recent forecast, Experian and Moody’s Analytics revealed Q42014 to be one of the most optimistic quarters for the small business sector, finding that as small companies more consistently pay back their loans, their risk factor is decreasing, which encourages lenders – both big banks and alternative financers – to issue capital.
Last week, the US Small Business Association revealed a new website in which SMEs can connect with lenders in under two days. Called the LINC, the site is the latest venture by federal authorities to support small businesses seeking capital to manage cash flow.
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