Buy now, pay later (BNPL) firm Sezzle and embedded finance platform Liberis teamed to help American small businesses get funded.
The partnership is centered around Sezzle Capital, designed to help small- to medium-sized businesses (SMBs) get financing without sacrificing equity, according to a Wednesday (Aug. 28) press release.
The program is designed to offer “flexible funding” to SMBs in the United States, and there are plans to eventually launch in Canada. Sezzle Capital will enable these firms to access capital for a range of business purposes at a time when most SMBs are worried about finding funding.
“As we expand across the United States and Canada, we choose to work with partners who are preferred and trusted by small businesses,” said Liberis CEO Rob Straathof. “Working with Sezzle allows us to serve both their early-stage and mature business customers with fast and flexible funding through our platform.”
Access to working capital isn’t just a matter of convenience for SMBs, but a necessity.
“It underpins their ability to manage daily operations, respond to challenges, and seize growth opportunities,” PYMNTS wrote this month. “Without it, even a profitable business can struggle to survive, especially in today’s fast-paced and often unpredictable economic environment.”
A look at the U.S. government’s Small Business Administration (SBA) website illustrates this point, with the agency expecting substantial demand for its Working Capital Pilot (WCP) program, especially as many SMBs face challenges accessing traditional working capital loans.
For 2025 alone, the SBA project will approve around 270 WCP loans adding up to $337 million. The agency said half of that volume will be from loans that would have otherwise been approved as an SBA 7(a) Export Working Capital Program loan or SBA 7(a) CAPLines loan, and the other half will be new volume.
About 8.5% of SMBs said working capital loans from banks are readily available, according to the PYMNTS Intelligence report “What’s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing.”
“More than half of respondents said coming into 2024 that they would consider tapping new financing,” PYMNTS wrote. “Among those considering new financing, more than 26% would consider using an online lender and about a third would use a large national bank.”
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