Onramp is now offering financing solutions to eCommerce sellers on Walmart Marketplace.
The eCommerce lending platform’s integration with the marketplace enables it to offer growth capital funding to sellers with repayment terms that align with their online sales, Onramp said in a Monday (June 26) press release.
“As an approved Walmart Marketplace Solutions Provider, Onramp can now help sellers on Walmart Marketplace secure funding to grow their businesses faster,” Onramp CEO Eric Youngstrom said in the release. “We’re thrilled to be helping sellers on Walmart Marketplace scale their businesses and achieve success.”
PYMNTS research has found that 24% of small and medium-sized businesses (SMBs) are concerned with finding affordable funding.
They are turning more to digital sources because traditional banks don’t usually offer online account opening or lending for small businesses, and the current process can take one or two weeks and requires a visit to the bank, according to “Digital Banking Rises to Meet SMB Needs,” the January/February edition of the “Digital-First Banking Tracker®,” a PYMNTS and NCR collaboration.
The report also found that 60% of SMBs are not getting information about borrowing options from traditional financial institutions, so they are turning more to digital sources.
With the new integration offered by Onramp, Walmart Marketplace Sellers can access funding for inventory management, marketing, shipping and other business functions, according to the press release.
In practice, Onramp plugs into the seller’s online store, looks at the seller’s sales history, offers funding based on that history and, if the offer is accepted, allows the seller to repay the loan with a portion of future sales, as the inventory is sold, according to the company’s website. There are no minimum payments or late payments.
“The opportunities for growth available to eCommerce sellers are phenomenal,” Youngstrom said in the release. “We’re honored to be a partner to eCommerce business owners in facilitating the access to cash necessary to grow.”
Walmart reported in May that seller counts increased by 40%, year on year, on its online marketplace in the United States.
“We see a pretty significant increase in conversion rates when a seller is using fulfillment services and can deliver within two days,” John Furner, president and CEO of Walmart U.S., said during a May 18 earnings call.
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