BlueVine provides working capital to SMEs, while Veem specialises in global payments. Both companies are based in the U.S. and came together to make it easier for SMEs to save more when they carry out cross border payment transactions, an issue SMEs struggle with.
Specifically, the new collaboration gives Veem’s clients in the U.S. the ability to finance cross border, and domestic, payments and provides access to working capital for business’ day-to-day needs.
BlueVine’s VP of business development and partnerships, Charles Amadon, indicated in a blog post that although most SMEs rely on banks for cross border payments, if you “ask a small business owner about their experience making cross border payments through their bank . . .you’re likely to get an earful”.
Veem sees the partnership as a way to provide SMEs with the financing options usually available to larger companies. “We’re partnering with BlueVine to provide fast and flexible working capital financing for Veem’s customers,” Veem indicated in a blog post on their website. In the same post, they cited a 2017 report by the Small Business Administration that pointed to the issue that 50% of small businesses fail within five years, and here insufficient capital is a leading reason for their failure. Moreover, they point out, “[f]inancial institutions are notorious for failing small business needs, especially when it comes to lending money.”
BlueVine offers SMEs financing options that include invoice factoring credit lines as well as traditional business lines of credit.
By Elliot Lyons, Research Analyst