Plastiq announces Short-Term Financing for SMBs

Friday 16 September 2022 08:35 CET | News

Plastiq, US-based B2B payments platform has announced that Plastiq Short-Term Financing will provide capital to Small and Mid-Sized Businesses (SMBs).


The Plastiq Short-Term Financing offering is directed at SMB’s growth, as they will be able to apply for funds, receive instant decisions and activate their credit line in real-time. Short-term funding has not been previously available to SMBs in as affordable of a format, despite them representing a USD 9 trillion Total Addressable Market (TAM) in the United States.

In August 2022, Plastiq and Colonnade Acquisition Corp. II have announced their entry into a definitive business combination agreement, which brought the combined company at an estimated enterprise value of around USD 480 million at closing. 

Plastiq representatives have stated in the company’s press release that their solution is aimed at SMBs that struggle with paying for expenses due to the lack of liquidity and access to working capital, which are more accessible when it comes to large businesses or corporations. The Short-Term Financing is expected to help SMBs’ flexibility and responsiveness when it comes to changing market conditions, as they will be able to:

  •  Get instant decisions and access to funds to extend a payment by up to 90 days,

  •  Pay back flexibly, either in lump sum total or instalments, using credit card or ACH,

  •  Receive competitive and easy to understand rates without commitments or hidden fees,

  •  And unlock cash flow to help grow the business and take hold of opportunities such as: fund inventory, advertising, and day-to-day expenses.

SMBs using Plastiq can get access to funds in real time by linking their financial accounts for assessment. Once approved, the funds are immediately accessible and, depending on the payment, can be used with flexible payback schedules. To get approval, businesses will firstly need to register for a free Plastiq account and apply for short time financing within the payment flow.


Plastiq, US-based B2B payments platform has announced that Plastiq Short-Term Financing will provide capital to SMBs.

Plastiq services and offering

Plastiq, founded in 2012, operates in the USD 9 trillion B2B payment market as a financial operating system for SMBs, providing them with technology and knowledge that would otherwise be accessible only to large enterprises. 

Plastiq helps businesses improve their cash flow by giving instant access to working capital, while automating and giving control over all aspects of accounts payable and receivable.

With over USD 140 raised in funding, Plastiq is backed by investors such as: Kleiner Perkins, B Capital Group and Khosla Ventures.

Plastiq recent integrations and partnerships

In January 2021, Plastiq announced the integration of Intuit QuickBooks Online into its payments platform. This helps businesses become more efficient and automate their accounting systems by importing invoices directly from QuickBooks and quickly identifying/populating essential information such as: vendor, amount due, and invoice due date. A clear separation of payments is made, as once an invoice is paid through Plastiq, the payment information is then exported into Quickbooks and it differentiates the portion of the payment applied to the invoice from Plastiq’s transaction fee. 

In March 2021, Plastiq and Ramp announced a partnership that was directed at allowing businesses to pay for their expenses with the Ramp card. With Plastiq allowing customers to pay by credit card in all instances, and Ramp being a corporate card and spend management platform, customers are enabled to charge expenses on their Ramp card, while leveraging Plastiq to instantly pay suppliers via ACH, wire or check. 

This partnership allows businesses to track and manage their expenses in a single place.

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Keywords: investment, payments , SMEs, SME lending, B2B payments
Categories: Banking & Fintech
Companies: Plastiq
Countries: United States
This article is part of category

Banking & Fintech


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