The e-commerce and payments solutions provider for merchants launched the European-wide product Boost, which is currently available in The Netherlands, Austria, Norway, Sweden, Denmark, Finland, and Germany for a limited number of merchants. A broader release is slated for December.

Klarna made the step because cash flow is often a big impediment to business growth for SMEs.

Boost will give SMEs expedited access to funding through a simple application process, Klarna claims, which will reduce financing-related stress. Merchants choose a loan amount, when they want to repay it, and the loans can be made available as soon as the following day.

Loan costs amount to one fixed fee, and repayment is a fixed percentage deduction from daily settlements, a percentage which decreases during slower periods.

Klarna has been testing Boost “for sometime”, according to Boost project manager Robin Hammar, noting that “the feedback so far from merchants across markets has been extremely positive and encouraging, the value we can bring to them is clear”.

Michael Rouse, CCO at Klarna, says Boost is a “financing made easy” product and that it “democratizes and simplifies access to capital for SMEs who often have a tough time and onerous process with traditional lenders”.

Recently, Klarna also launched an automatic onboarding process and a tool to analyse sales data, both directed towards SMEs.