MercadoLibre is undoubtedly the leader of e-commerce in Latin America, has long been referred to as ” eBay in Latin America ” and has good reason to be. The company was originally modeled to advance the market by connecting buyers and sellers on an auction-type platform. EBay initially encouraged Free Market to create a simplified payment system – PayPal – modeled by PayPal itself, which was the key to the company’s recent success.
EBay had a stake in its Latin American platform until recently. The Free Market online platform in Argentina plans to grant loans and working capital to companies, entrepreneurs and entrepreneurs in Brazil and also in Mexico to further expand another program that the company launched at its headquarters last month.
In recent years Free Market has evolved a lot, becoming much more like Amazon.com by allowing merchants to sell goods, services on their site and offer various consumer products via online platform. Recently, the company has provided even more technological infrastructure, logistics services and even (small business loans) through its small machines.
Sellers using Free Market and their Payment Market payment platform may have loans equivalent to up to two months of their monthly sales to operationalize and leverage their sales even more with the strength of working capital for purchases of products that are sold increase growth.
The company has gained a significant advantage with MercadoEnvios, its delivery solution, in a market that was not notoriously reliable when it came to package delivery by the Post Office.
Free Market by adding shipping services directly to its platform and acting as an intermediary between vendors and companies to ensure the products are delivered has gained significant cost benefits as a result of volume discounts.
A loan with a handshake ! South America is a region that has many idiosyncrasies not present in other parts of the developing world. Many of your citizens do not have a bank account or credit cards.
The result of this is a money-based economy and as such, the vast majority of people do not have credit history and credit score, a particularly common problem among small business owners and online businesses. As a result, many small businesses in the country have difficulty getting loans from traditional banks, not to say impossible.
Sellers of the Free Market website that use their payment solution from market and own the machine will be eligible to apply for working capital loan for amounts that represent up to two months of sales. The company is using the accumulated information of 18 years of operations and applying algorithms and data analysis to obtain reliable information.
With the knowledge of each company’s sales, customer dispute resolution records, cash flow and sales data give the Free Market access to sufficient information to determine the creditworthiness of each vendor in its base online.
The company will also eliminate the conventional ” loan process “, sellers will not have to sign documents or send financial information to get a loan from the Credit Market, the free market credit arm. With the “Mercado Pago Point” it is possible to borrow without paperwork.
The Free Market Loan has already launched in Argentina and plans to offer in Brazil officially and in Mexico.