Fundera, a New York-based small business lending marketplace, is partnering with UPS to offer loans to UPS clients.
The tie-up, announced this week, puts Fundera’s lending platform on UPS’ warehouse logistics platform Ware2Go, letting businesses access loans while they’re building supply chain solutions.
“As you’re using the Ware2Go solution, it will enable you to grow your business,” said Tony Santillo, senior vice president of business development at Fundera. “As Ware2Go is driving the growth for the small business, they will have capital needs.”
Ware2Go helps smaller merchants find short-term warehouse space around the country so they can offer one- or two-day deliveries, allowing them to compete with mass retailers. Fundera is betting on the fact that UPS merchants will require loans to fuel further growth.
Santillo said the partnership is a way to put Fundera’s platform in a convenient, unobtrusive place for potential customers. On the online application, companies are prompted with basic questions like how long they’ve been in business and the size of the business. According to Santillo, the majority of users speak with a customer service rep during the application process. Decisions take anywhere from a few hours to weeks.
Fundera’s financial partners include incumbents like JPMorgan Chase and Capital One, as well as established startups like Kabbage and BlueVine. Fundera’s embedded approach is part of a larger trend among lending businesses to partner with brands to reach new customer segments. For example, Kabbage partnered with GoDaddy earlier this month to reach GoDaddy’s 19 million entrepreneurs. According to Fundera, small businesses using the Ware2Go platform are likely a natural fit for Fundera’s financing solutions.
“[Customers] are already engaging and working with Ware2Go, and now they need capital to grow their business,” Santillo said. “The partnership allows that customer to have clean access to come to Fundera, and we work with them to meet their new capital needs.”
Fundera, which counts more than 35,000 small businesses as clients, has so far facilitated $1 billion in loans initiated through its platform.
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