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Qupital has entered into a strategic partnership with LianLian Global, China’s leading digital services and payments provider for cross-border e-commerce sellers.
QiaoYiDai, the latest fintech product jointly developed by Qupital and LianLian Global, will provide pioneering, data-based offshore USD financing services to LianLian Global’s extensive network of e-commerce customers.
Cross-border e-commerce sellers tend to operate an asset-light but cash-intensive business model. As such, their financing demands are often frequent and on a short-cycle basis. The credit assessment process of traditional lenders such as banks and financial institutions, however, heavily focuses on the borrower’s financial status and its ability to provide collateral, thus making it difficult for small-and-medium sized businesses to obtain financing through traditional banking channels. Moreover, the complex procedures and rigid regulations of traditional lenders may also be unsuitable for cross-border e-commerce sellers which typically require high capital flexibility.
These shortcomings have led to the emergence of various alternative financing products for cross-border e-commerce sellers, providing them with additional cash flow to unlock accelerated business growth. In order for each merchant to qualify for these products, each seller must undergo a rigorous credit assessment process which factors in an extensive range of operational and alternative data including the credibility of their online shops, historical transaction data, rating data, refund and exchange rates of goods, among a plethora of other data points.
Traditional lenders utilize manual frameworks to analyze static financial data in order to provide credit assessment decisions. However, Qupital’s new product, QiaoYiDai, is a digitalised financing solution developed using real-time e-commerce statistics and big data. Qupital obtains real-time authorised data through e-commerce platforms and harnesses the value of the sellers’ operational data for credit control purposes. This allows the company to facilitate a fully online application and seamless approval process, and enables the entire credit assessment process to be completed within three working days and all drawdown requests to be settled within 24 hours.
QiaoYiDai provides an entry-level credit limit of USD 200,000, with a maximum credit limit of up to USD 1.2 million for qualified sellers. Its revolving credit facility design allows cross-border sellers to flexibly allocate funds according to their financing needs, and caters to their unique business cycle by enabling them to minimise financial costs and avoid time-consuming procedures during drawdown and repayment.
Qupital conducts precise data analysis using its proprietary big data risk assessment model, evaluating each sellers’ operational data and closely monitoring real-time changes in the seller’s operational situation at key credit control stages before, during and after the provision of a loan, thereby integrating risk assessment and monitoring mechanisms into the seller’s daily operations.
Having operated in the cross-border e-commerce industry since 2013, LianLian Global has accumulated years of experience in providing cross-border payment services and has served more than 500,000 sellers, solving a multitude of their operational pain points. With the help of big data and other technologies, LianLian Global has also consolidated the information, logistics and capital flows of cross-border sellers, thereby facilitating the creation of a brand-new financial services ecosystem for its upstream and downstream partners.
This strategic partnership will benefit cross-border sellers by utilising both LianLian Global’s payment services and Qupital’s financing solutions to accelerate their business growth, increase their revenue streams and enable their cross-border capital flows to become more efficient. Furthermore, the involvement of LianLian Global will further improve QiaoYiDai’s funds flow capabilities, reducing credit risks, and at the same time enable the product to become more automated. “Qupital and LianLian Global share a common vision to help cross-border sellers grow rapidly in the new era of e-commerce characterised by data and intelligence. We are very pleased to bring LianLian Global’s customers a financing solution that is easier to apply, more efficient and at a lower cost.”, said Winston Wong, Qupital’s Chief Executive Officer, regarding this partnership.
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