Alibaba signs deal with Lending Club to provide financing for US buyers

21 February 2015

US firms will be able to access working capital to buy from international suppliers via a new credit line portal.

Lending Club, the online marketplace for borrowers and investors, and Alibaba, the global wholesale trade platform, have launched Alibaba.com e-Credit Line which is powered by Lending Club.

It will allow US small businesses to obtain a line of credit from $5,000 (£3,300) to $300,000 (£198,000) to make a payment to a supplier for purchases on Alibaba.

Sellers on Alibaba are typically manufacturers and distributors based in China and other manufacturing countries such as India, Pakistan, the United States and Thailand.

Michael Lee, Alibaba global marketing and business development director, said: "Our mission is to make it easy to do business anywhere. We want to make financing as efficient as possible for the millions of US buyers that do business through Alibaba.com and are pleased to bring Lending Club's simple, low cost and transparent financing products to our US buyers."

The line of credit matches repayment terms to the cash flow cycles of the business, vets suppliers and shipments, and transfers the funds directly to the supplier. Monthly fixed interest rates start at 0.5 per cent.

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