ByteDance to enter the finance sector via SCF subsidiary

Monday 18 January 2021 13:08 CET | News

TikTok’s parent ByteDance has established a factoring service which will offer financing, collect accounts receivables, and provide guarantees.

Created in China, the subsidiary is called Zitiao Commercial Factoring Company. The launch of this subsiiary signals that ByteDance is laying the building blocks for its fintech segment. The firm could be very helpful for ByteDance once the company decides to offer micro loans.

ByteDance has been eyeing the finance sector before. The company’s attempt to establish a micro loan company failed in 2017. The firm finally gained an online payment license by acquiring a China-based company in the third quarter of 2020.

The company will be able to use the factoring subsidiary to provide capital for its upstream and downstream companies to boost the development of the company’s entire ecosystem.

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Keywords: ByteDance, TikTok, China, Zitiao, micro loans, online payments, factoring
Categories: Banking & Fintech
Countries: China
This article is part of category

Banking & Fintech