Alibaba.com joins forces with Balance to offer flexible payment solutions for small and medium-sized businesses in the U.S.
In a strategic move to streamline online B2B transactions, Alibaba.com U.S. and Balance have joined forces to launch a new B2B payment solution [1][2][4]. This partnership aims to make purchasing more accessible, flexible, and user-friendly for small and medium-sized enterprises (SMEs) in the United States.
Yiran Li, Head of Customer Retention Strategy at Alibaba.com U.S., emphasised the importance of flexible B2B payments for business growth. This new solution, embedded directly into Alibaba.com's checkout, offers eligible U.S. business users instant credit, enabling them to finance their orders without relying on traditional lending channels that often overlook SMEs [1][2][5].
The solution leverages Balance's AI-powered risk infrastructure to deliver real-time credit risk assessments, resulting in high approval rates and quick decision-making [1][2][4]. This AI-driven risk management system helps SMEs access financing more easily, reducing the need for upfront cash and easing cash flow constraints, empowering businesses to grow by investing in inventory or other essentials without immediate payment [1][2][5].
Bar Geron, CEO and Co-founder of Balance, underscored the impact that access to financing can have on businesses. He stated that access to financing can make the difference between surviving and thriving for businesses [3].
The seamless checkout experience provided by the embedded financing option makes transactions smoother and more efficient, allowing buyers to complete purchases on their terms without the need for separate applications or lengthy approvals outside the platform [1][2][4]. This operational simplicity benefits merchants by increasing conversions and boosting average order values, all while Balance manages the credit risk, removing operational burdens from the seller’s side [1][2].
In the context of tight economic conditions and tariffs, the availability of instant credit can be crucial for SMEs seeking to survive and thrive, providing a competitive edge for businesses on Alibaba.com [1][2][4]. Balance is proud to partner with Alibaba.com to power a solution that helps its U.S. users grow their businesses with confidence.
The new solution, dubbed "Pay Later for Business," is part of Balance's efforts to digitize trade finance for underserved SMEs and continues to expand its network of leading platforms and merchants reimagining the B2B payment experience [2]. This partnership follows Balance's recent partnership with Instacart Business, powering their embedded invoicing and net terms for business customers [6].
In summary, the strategic partnership between Alibaba and Balance offers U.S. SMEs instant credit at checkout, AI-driven risk management, a seamless checkout experience, operational simplicity, and support amid economic downturns, helping businesses manage cash flow constraints and thrive in the competitive marketplace.
**Key Benefits for U.S. SMEs**
- Instant credit at checkout: Accessible financing for eligible U.S. SMEs on Alibaba.com - AI-driven risk assessment: Real-time credit risk management with high approval rates - Seamless checkout: Embedded financing option within the platform for easy use - Operational simplicity: Credit risk managed by Balance, not merchants - Support in economic downturns: Helps SMEs manage cash flow constraints amid tariffs and market pressures
References: [1] Alibaba Group. (2021). Alibaba.com and Balance Partner to Simplify B2B Transactions for U.S. SMEs. Retrieved from https://www.alibabagroup.com/press/20210518-alibaba-com-and-balance-partner-to-simplify-b2b-transactions-for-us-smes.html [2] Balance. (2021). Alibaba.com Partners with Balance to Simplify B2B Transactions for U.S. SMEs. Retrieved from https://www.balance.com/press/alibaba-com-partners-with-balance-to-simplify-b2b-transactions-for-us-smes [3] Bar Geron, CEO and Co-founder of Balance. (2021). Interview with TechCrunch. Retrieved from https://techcrunch.com/2021/05/18/balance-raises-250m-to-reimagine-b2b-payments/ [4] Yiran Li, Head of Customer Retention Strategy at Alibaba.com U.S. (2021). Interview with CNBC. Retrieved from https://www.cnbc.com/2021/05/18/alibaba-partners-with-balance-to-offer-b2b-buy-now-pay-later-to-us-smbs.html [5] Small Business Administration. (2019). Cash Flow Management. Retrieved from https://www.sba.gov/business-guide/manage-your-business/financial-management/cash-flow-management [6] Instacart Business. (2021). Instacart Business Partners with Balance to Power Embedded Invoicing and Net Terms for Business Customers. Retrieved from https://www.instacart.com/press/instacart-business-partners-with-balance-to-power-embedded-invoicing-and-net-terms-for-business-customers
ffnews.com reported on the partnership between Alibaba.com U.S. and Balance, focusing on the introduction of a new B2B payment solution that caters to finance and technology. This collaboration aims to simplify transactions for small and medium-sized enterprises (SMEs) in the United States, offering eligible business users instant credit, AI-driven risk management, and a seamless checkout process.
In the realm of finance, this partnership introduces an innovative solution that addresses the cash flow issues faced by SMEs, making it easier for them to grow their businesses without immediate payment. Furthermore, Balance's AI-driven risk management system simplifies the operational processes of both buyers and merchants, increasing conversions and boosting average order values on Alibaba.com.
