In Brazil, Mercado Pago is launching a medium and small business credit line. Since the government-funded credit and support packages in many countries are deemed not enough to assist independent and local merchants amid the COVID-19 health pandemic, many turn to corporate assistance. Local entrepreneurs in Brazil have expressed concern that the financial relief from banks is not substantial because their lines of credit are shorter and more expensive. In fact, 60% of small business owners have reported that they were unable to obtain it. As a result, Mercado Pago's solution might come in as a better option for some—R$600 million roughly equates about $114 million USD.
Mercado Pago is the financial arm of Mercado Libre—an e-commerce giant in Brazil—and "this money would be destined particularly for sellers on [its] platform."
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What Makes This Trend Stand Out
- Small Business Credit Lines
- Mercado Pago's credit line for small and medium businesses in Brazil.
- COVID-19 Business Relief
- Corporate assistance for small businesses affected by COVID-19.
- Alternative Lending Solutions
- Fintech companies offering better lending options than traditional banks.
Sectors Adopting This
- Fintech
- Mercado Pago's solution and other fintech companies are disrupting traditional lending methods.
- E-commerce
- The credit line is specifically aimed at small businesses on Mercado Libre's e-commerce platform.
- Small Business
- The financial relief package targets small and local businesses struggling to obtain credit during the pandemic.
