TikTok Shop Partners With Storfund
Called Daily Advance, the product will see Storfund advance money to sellers as soon as they ship their goods.
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FinTech firm Storfund has announced a new partnership with TikTok Shop that, it says, will introduce the first fully embedded cash flow solution in a major US marketplace.
Called Daily Advance, the product will see Storfund, which was founded in London in 2018, advance money to sellers as soon as they ship their goods.
The company says that this addresses a significant disparity in the fast moving world of ecommerce where customers can buy online in minutes, but marketplaces can delay payouts to sellers for up to 60 days.
Money is legitimately held back by all marketplaces to ensure that sellers have funds available for refunds but this can disrupt their ability to restock and scale up.
The partnership sees TikTok Shop embed the proprietary solution end-to-end within its platform.
George Brintalos, Storfund’s CEO, said, “As we’ve seen on the almost 50 marketplaces where Storfund is available globally, improved cash flow is win-win for sellers and marketplaces. We expect Daily Advance to be instrumental in driving seller growth, and therefore TikTok Shop’s growth.”
“We want Daily Advance to be the norm on every marketplace worldwide, so our partnership with TikTok Shop is a huge milestone for us and one that we trust will prove hugely beneficial to US sellers too.”
Jordan Ellingson’s company Valley Chase in Minnesota sells on TikTok Shop. He explained that it can take as little as a week to go from ordering to selling, particularly if he hosts a livestream, but he can typically wait another week to get paid.
He commented, “For a seller who’s looking to scale their business and ultimately reduce their stress around cash flow, Daily Advance is a game-changer.”
Livestream shopping is proving a success for TikTok Shop in the US, with SMEs able to use content to connect with buyers, rather than rely on searches; in June this year, TikTok Shop hosted its first $1 million livestream for one of its sellers.
For Ellingson’s company, Daily Advance has reduced his cash cycle from 14 days to seven.
“The ability to forecast and plan has made a tangible difference in my day-to-day operations,” he said. I can schedule orders and not have to say ‘I think I should get a payout tomorrow’, because I can count on Storfund.”
“Unlike traditional financial products, Daily Advance is built for the intensive speed and volume of ecommerce transactions, putting high-growth sellers in control of their working capital,” says Storfund’s Chief Revenue Officer Oliver Whelan.
“There’s virtually no limit to what businesses can receive, whether they make sales of $10,000 or $1 million in one day, Daily Advance will enable them to maintain their momentum.”
