PlastiQ's payment volume jumps by 37% with instant working capital

About PlastiQ

PlastiQ launched in 2012 with the one simple idea: enable SMBs to purchase with credit card whether their merchant accepts it or not. 
In the decade since, Plastiq has enabled small and medium-sized merchants to pay rent, payroll, international vendors and more with a credit card – allowing customers to earn rewards, cash back and a 30 to 60-day float on payments.

Embedded financing

While credit cards are easy to use and offer a short extension, PlastiQ’s customers started to search for other ways to extend their cash flow. They needed additional terms to keep growing in the face of hurdles like long manufacturing and shipping times, fluctuations in sales or extended wait times for insurance reimbursements.

They were tired of the time-consuming and cumbersome hurdles to access traditional working capital, which often was impossible for them. A traditional SBA loan can take up to 60-90 days, require meetings with bankers, and extensive financial review. Then to draw on certain types of loans takes even longer.

PlastiQ wanted a simple solution for their customers that would offer:

• A negative cash conversion cycle by lengthening float up to 90 days
• Instant access to working capital

Finding a solution with Slope

By working with Slope, Plastiq found instant access to capital, white-glove customer service and a customized product experience. Their customers in turn gained:

• Instant access to $100K, with limits over $1M with additional review
• Up to 90 days net or installment payment terms
• Ability to earn cash back and rewards by paying with their card

In return, their customers have been able to move inventory 5x before having to pay back, seen 50% annual growth, reduced their interest payments on unused credit and earned thousands in cash back and rewards.

These benefits have helped PlastiQ to attract and retain customers. They have since seen a 37% increase in new payments on their platform. For their customers with over $10M in revenue, they have seen a 83% utilization rate.