Alibaba Launches Interest Free Financing for U.S. Companies

China’s largest e-commerce company, Alibaba, launched a new interest free offering for U.S. small businesses;“Rather than a low-cost loan, the new product is a trade financing solution embedded directly into our marketplace,” Kivanc Onan, a payments executive at Alibaba, said in an email to American banker; Alibaba has a partnership with online lender Kabbage but with the company not originating new loans this product will allow for MSBs to access 60 days of interest free financing; to pay for the financing, Alibaba plans to charge a 2.2% fee to participating companies that sell items on its platform, though that fee is being waived during the pandemic. American Banker

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