November 19, 2018 – Klarna today announced that they have launched a new initiative – Boost – to further support SME merchants in accelerating their growth. Boost which is now live across 7 markets, is a financing program with a simple and straightforward application process, which enables merchants to quickly access funding, as well as decrease any financing related stress.
For entrepreneurs and small businesses, cash flow is often one of the main hurdles when wanting to take the next step in their development. Hiring extra staff, building a new website or creating marketing campaigns can quickly become a barrier rather than a milestone. Gaining access to financing is often a time consuming and complicated process that requires business owners to invest a lot of effort that could be better spent elsewhere. With Boost, Klarna enables SMEs to apply for a cash advance through a quick, frictionless and transparent process and thereby instantly open up opportunities for future growth.
Robin Hammar, Product Manager, Boost:
“We at Klarna see our merchants as partners and regularly ask what more we can do to help solve for their everyday struggles. For SMEs, access to financing for smaller upgrades of their store or relating to customer acquisition is always on top of that list. With the launch of Boost we’re excited to make this possible, while also ensuring that the entire loan process, from application and until full repayment is smoooth. We have been testing this product for sometime and the feedback so far from merchants across markets has been extremely positive and encouraging, the value we can bring to them is clear. ”
Klarna merchants can now request a loan in a matter of minutes through the Boost section on Klarna’s Merchant Portal as well as through a widget on connected partner platforms. The merchant simply selects the amount they require and how quick they want to repay, and the funds are made available as soon as the next day. There are no lengthy questionnaire or complicated collateral agreements to review. The cost of the loan is one fixed fee, visible directly in the app and no other fees will be added at any point. This makes it easy for merchants to evaluate the cost upfront and whether to ask for financing for that particular investment. The loan is repaid through a fixed percentage deduction off of daily settlements. The fixed percentage means that when sales go up, the loan gets paid off quicker. During slower periods, the daily repayment amount decreases. This ensures that merchants always have cash flow to support their day to day operations.
Michael Rouse, Chief Commercial Officer:
“Since the beginning Klarna has helped thousands of merchants to grow by making the shopping experience the best it can be for their customers. With Boost we are now creating a “financing made easy” product for them, which importantly democratises and simplifies access to capital for SMEs who often have a tough time and onerous processes with traditional lenders. These are merchants we know and work with every day and this service now being available to them means that they can keep focus on the most important things for growing their business. Ultimately, Boost will help them compete more effectively on their key markets and unlock growth.”
Boost is one of several products in the evolving SME merchant offering. Klarna recently launched an automatic onboarding process across an increasing number of ecommerce platforms. The automatic onboarding makes it even easier for SMEs to offer an exceptional customer experience through Klarna, and thereby removing unnecessary friction associated with the checkout process. Klarna has also launched a tool that enables merchants to analyse their sales data to better understand their current customer base and support them in acquiring new customers.
For more information
Johanna Nyman, Senior manager Communications & PR
+46 (0) 72 855 83 29
Klarna is one of Europe’s leading payments providers and a newly-licensed bank, which wants to revolutionise the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, we give online consumers the option to pay now, pay later or over time – offering a simple, safe and smoooth checkout experience. Klarna now works with 100,000 merchants. Klarna has 2,000 employees and is active in 14 countries.