Walmart Stores, Inc. (WMT) is teaming up with Goldman Sachs (GS) to offer business credit lines to small and medium-sized businesses selling on Walmart. The offer is being made by Marcus, Goldman’s online consumer banking unit, as per reports. Initially, sellers can access lines of credit between $10,000 and up to $75,000 with fixed annual interest rates between 6.99% and 20.99% and hopes to raise the potential line of credit for qualifying customers to as high as $1 million.
“Access to affordable capital is more important than ever as businesses large and small world to adapt and evolve to serve customers and grow their businesses. Lines of credit offer businesses the flexibility to access money when they need, which could help them move fast and meet during customer demand. It could also help fund innovation as we’re all working to adapt to changing customer behavior and preferences,” Jeff Clementz, vice president of Walmart Marketplace, stated in a blog post.
Walmart’s e-commerce sales have witnessed strong growth during the pandemic with online sales surging 97% year-over-year during the second quarter. Walmart sites now feature more than 75 million items as it continues to challenge rival Amazon in the e-commerce league.
On the other hand, Goldman is also gaining from the shift to the web and going digital, especially during the pandemic imposed lockdowns. The Wall Street giant partnered with Amazon in June to offer its fixed-rate lines of credit to third party sellers. Goldman’s Consumer banking unit posted revenues of $258 million, up 19% from the same period a year ago, in the second quarter.
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