Sempli to launch digital-first credit card for startups and SMEs. Good credit or bad credit?

Contxto – Running a small business can be anything but simple. 

So fintech Sempli is stepping in with Sempli Business, a digital-first credit card for startups and SMEs (small and medium-sized enterprises) in Colombia.

This news comes at a time where accessing cash and lending solutions are increasingly difficult for small entrepreneurs.

Sempli expands its portfolio

The fintech is no newbie when it comes to credit-related solutions. Since 2017, it’s been procuring SMEs with working capital. 

Then in September of last year, Sempli closed its Series A for US$8 million and would use the funds to expand its portfolio of products. It’s only recently that we’ve begun to see some of these new solutions surface.

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Last month, the fintech launched insurance products for businesses. It also released more diversified lending solutions for businesses run by young people or by women, as well as for businesses that help the environment or are undergoing changes.

These products greatly respond to the ever-evolving needs of SMEs in Colombia, as well as to the circumstances brought on by the Covid-19 pandemic.

Now Sempli is hauling out a new product that makes the most of its experience in lending.

Sempli credit card

Mandatory quarantine orders in Colombia have essentially become a death knell for its SMEs. 

And according to a recent survey by the OECD, Facebook, and the World Bank, 85 percent of SMEs reported difficulties paying their business expenses as a result of the contingency.

When they don’t have the resources to cover their day-to-day costs, it’s only a matter of time before they shut their doors forever.

In that sense, a more SME-friendly credit card like that which Sempli offers is a welcome sight.

Cardholders pay vendors immediately and then have 30 days to cover the bill. It’s the kind of simple gesture that provides an important lifeline for enterprises struggling with cash flow.

Likewise, the approval process for obtaining this card is reportedly ver quick. And since the card is digital, once Sempli approves the request, a company can use it right away.

Now, one of our readers shared a very interesting case to be made, last week. “The suppliers of goods used to give credit to the shops; now the shops get credit from startups. The shop may end up with a higher cost of credit than before,” he writes.

Indeed, though we don’t exactly know what the interest rate is yet, this is certainly a very feasible scenario.

We’ll keep you updated.

Related articles: Tech and startups from Colombia!

-ML