Swedish payment service provider Klarna has launched its own financing program for SME retailers in Europe. The initiative is called Boost and aims to support retailers accelerate their growth. In the beginning, Boost will be available for selected merchants in Austria, Denmark, Finland, Germany, the Netherlands, Norway, and Sweden only. Starting in the beginning of December, it will be released on a much wider scale in these seven European nations. It is Klarna’s aim to release one of the biggest hurdles for entrepreneurs and SMEs who want to grow. “Gaining access to financing is often a time consuming and complicated process,” the company states in its press release.
Klarna aims to simplify the process from application to full repayment as simple as possible. Merchants can request a loan through the online merchant portal of Klarna or a widget on connected partner platforms. They select the amount they would like to loan and when they want to repay. Costs consist of one fixed fee, no other fees will be added at any point. “The fixed percentage means that when sales go up, the loan gets paid off quicker. During slower periods, the daily repayment amount decreases. This ensures that merchants always have cash flow to support their day to day operations.”