TECHNOLOGY companies Lazada and First Digital Finance Corp. (FDFC) are launching a financial relief program for micro and small businesses affected by the coronavirus disease 2019 (COVID-19) pandemic.
The e-commerce and financial technology companies in a press release on Thursday said Lazada sellers can apply for a loan online through the BillEase for Business digital application.
FDFC is the company behind digital credit app BillEase as well as BillEase for Business, the micro, small, and medium-sized enterprise financing platform.
The program, called Lazada Seller Financing, is open to Lazada sellers who have operated on the platform for at least six months. The loans will be for online merchants who need capital to operate, based on their sales record before the lockdown.
“The spread of COVID-19 is creating challenges to most businesses today and in particular to online merchants that’s why we launched this program as part of our commitment to financing small business owners during this difficult period,” FDFC Chief Executive Officer Georg Steiger said.
Online sellers can use their Lazada transactions prior to the enhanced community quarantine as their basis for a working capital loan.
The loans will be processed within one banking day. Successful applicants for loans, which are priced between 2% and 3.5%, have a one-month grace period for repayment.
Lazada said it launched the financing program after some lending institutions tightened underwriting standards or limited their lines of credit.
“Several banks have reduced access to credit during the quarantine period,” the statement said.
The zero percent installment program for consumers buying essential goods on the Lazada platform and paying through BillEase has also been extended to the end of the quarantine period on April 30. — Jenina P. Ibañez
