Adyen launches lending product as payments provider chases new business

Adyen has unveiled a service for small and medium businesses to borrow funds and says it doesn’t need a credit licence to do so.

Adyen lending product Capital allows businesses to borrow directly from the payments provider.

Dutch payments company Adyen will allow its merchant providers to offer business customers access to financing to fund purchases.

Adyen said its lending product, dubbed Capital, would allow business users to take out a line of credit through the company’s payments management platform to fund working capital needs.

The system is already in place with three companies that use Adyen behind their point-of-sale systems offered to small and medium businesses.

The rollout of the lending in Australia follows Adyen putting Capital in place in markets such as the United States and the United Kingdom.

Adyen AUNZ country manager Hayley Fisher said business users of Adyen reported the need for working capital and were keen to access it within its payments systems.

Ms Fisher said Capital would allow point-of-sale merchants to offer financing to their business users.

“Using this solution provided by the platform – provided by Adyen – they can do this in real time and they can log into the portal and see a Capital offer available to them,” she said.

“There’s no weeks to wait for the capital.”

Adyen AUNZ country manager Hayley Fisher. Picture: Danny Santos

Loans could be as large as low five-figure amounts and are on offer to companies with more than three months’ payment history through the platform.

Those taking up the loans don’t pay interest but rather an upfront fee, based on the size of the credit facility, to fund the loan.

Businesses are given up to 12 months to repay the loans, and the risk of default is borne by Adyen which funds the lending from its balance sheet.

Adyen said it did not need a credit licence to provide the loans, which will be written exclusively for business purposes and not personal or household use.

Ms Fisher said Adyen was seeing “fantastic growth” in Australia and that companies such as Facebook, Uber, eBay, and Microsoft were users of its services.