Visa, Validus to provide virtual card solutions for SMEs

Visa has teamed up with FinTech platform Validus to provide SMEs with virtual card solutions designed to help scale their businesses. The partnership seeks to unlock capital for SMEs to reinvest in their products and services.

The solution has already been adopted by GroXers Inc Pte Ltd, a food and beverage distributor in Singapore.

Under this partnership, Validus is working with Visa to facilitate immediate cash flow to SMEs with unpaid invoices in their payment cycles. By clearing invoices for SMEs using a Visa virtual commercial card, Validus helps SMEs expand faster and have a faster turnover for their products and services.

The food & beverage (F&B) businesses, have to deal with a large number of buyers ranging from “Small businesses often face challenges such as access to capital to fund their business growth and this makes them vulnerable. Similarly, suppliers for these businesses may be challenged to provide adequate credit, as they do not have the skills to underwrite higher credit lines,” commented Vikram Kshettry, head of B2B Partnerships and Small Business Asia Pacific at Visa.
“It is essential that businesses are able to access credit from specialist lenders to invest in their businesses, and for suppliers to be paid on time. The presence of such lenders, who can respond faster to business needs, is key to Singapore’s continued SME growth.”

GroXers Inc, a leading enterprise run by well-known Singaporean entrepreneur, Nichol Ng, stated that the solution has freed up their cash flows considerably.

“We have been looking for a solution that bridges the gap between our cash flow and account receivables and this is our biggest untapped asset. It is interesting to see how this solution has enabled us to receive our money faster and more seamlessl,” Ng aid.

“At GroXers Inc, 100% of our receivables from B2B retailers are now on credit card payment. We genuinely feel that in today’s economy, we should free our time and cash flow to focus on growing our business.”

Validus and Visa will look to increase their commitment to supporting SMEs in Singapore across a range of industries. This includes businesses that specialize in the distribution, services and manufacturing sectors.