might your favorite restaurants not survive quarantine? brazilian fintech, cora, may help you save them
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Contxto – Fintechs that offer credit-related products for individual consumers as well as small and medium-sized enterprises (SMEs) are all speaking up about how they’ll help their customers survive nowadays. And usually, the relief they bring takes the shape of changes to their credit terms.
Helpful? Yes. A refreshing take on the problem? Nope. That is, until recently.
Brazilian startup Cora has added a new feature to its platform for SMEs. Through this update, businesses’ cash flow receives an additional boost as customers can prepay for goods digitally through the fintech’s system.
Related article: Mercado Crédito puts 2 million loans on hold—but there is a catch
The numbers don’t lie, it’s bad
According to São Paulo’s Association of Bars and Restaurants, at the rate at which consumption is dropping in Brazil, 3 million jobs may be cut within the next 40 days as the industry struggles to survive. And it can get worse.
In another 50 to 60 days, the number could rise to 4 million layoffs.
As governments in Brazil, Mexico, Colombia, and virtually everywhere, toil away at fixing a rescue package to help these businesses, startups are showing some backbone and offering alternatives.
Enter fintech Cora.
Related article: New Brazilian fintech Cora closes US$10 million investment from Kaszek Ventures and Ribbit Capital
Cora wants to keep up the cashflow for SMEs
So let’s say I’m a huge fan of a nearby vegetarian restaurant. Unfortunately, my favorite joint is falling on hard times since customers are no longer stepping in to grab a bite. Coronavirus and all that, you know how it goes.
But now through Cora’s latest feature, I can buy vouchers for this restaurant beforehand. Once it’s safe to come out of our houses, I can drop by and pick up my meal.
Ultimately, it’s a prepaid service where individuals help these shops stay open by injecting cash now and consuming later.
If you happen to be in Brazil and know of a local shop or restaurant in need of a cashflow kick, you can recommend it here.
Certainly, it’s an innovative way of helping business at no additional expense.
So spread the word will ya?
Related articles: Tech and startups from Brazil!
-ML
