Lazada vendor loans program launched in Singapore
Alibaba-backed online marketplace Lazada has started offering loans to online sellers in Singapore.
The Lazada vendor loans are made in partnership with financing startup Finaxar, with the program closely following the e-commerce platform’s decision to discontinue commission charges within Singapore. They program provides Lazada sellers with access to capital at any level as they need it instead of having to sign up for long-term loans.
Both strategies are designed to increase Lazada’s competitiveness against rival brands such as Shopee and Carousell.
Merchants seeking credit are invited to sign up on Finaxar and link their Lazada accounts, in an application process that can be initiated and approved within 30 minutes. Repayments can be synced with the receipt of customer payments from Lazada.
Finaxar’s fee is up to 1.5 per cent of the loan. There are no additional fees and no revenue-sharing with Lazada.