Kabbage, the global financial services, technology and data platform serving small businesses, now powers the Pay Later program offered to US buyers on Alibaba.com, Alibaba Group’s online platform for global B2B trade.

Pay Later allows millions of US small businesses on Alibaba.com to obtain up to $150,000 of financing for their orders. Pay Later improves cash flow and makes global commerce more accessible for small businesses.

To apply on Alibaba.com or the Alibaba.com mobile app, small businesses connect their verified, real-time business data, such as a bank account, accounting software, payment processors and more, for a fast and paperless funding decision during the checkout process.

Each purchase financed via Pay Later creates a six-month term loan with rates as low as 1.25 percent per month — a competitively lower rate than most traditional loans.

There are no fees to apply, no fees to maintain the line of credit, no order transaction fees and no early repayment fees.

“Financing at the point of sale requires a fully automated solution that can handle the immense volume of daily transactions that occur on Alibaba.com. We are incredibly impressed with the service and value that Alibaba.com delivers to American businesses and want to do all we can to support their important mission. The collaboration with Alibaba.com has already delivered millions of dollars of purchasing opportunity to U.S. small businesses and showcases the adaptability of our technology.”

Kabbage CEO Rob Frohwein


Since its beta launch in June 2018, The Pay Later program has simplified and strengthened payments for small businesses using Alibaba.com.

Polling nearly 1,000 Pay Later customers, 81 percent indicated it is easier to apply with Pay Later than other business financing options, and 68 percent said Pay Later has allowed them to increase order sizes on the site.

Pay Later financing also better accommodates the around-the-clock nature of small business owners as more than 60 percent of loans to-date have been accessed outside of normal banking hours of 8 am and 4 pm.

Doing Business With China

The B2B nature of Alibaba.com is mostly about US-based businesses purchasing goods from China for sale on their own websites or on marketplaces.

The current trade war between the US and Chinese governments may have slowed down Alibaba’s expansion in the US a bit.

But large and small US companies still need Chinese manufactured products as domestic manufacturing is often not a real option.

The collaboration with Kabbage shows that Alibaba is confident the trade war will pass and the company wants to work with more US small businesses to find manufacturing sources in China for their products.

READ MORE: Alibaba Group’s Jack Ma Shares Vision For The Future of Manufacturing

Do you use Alibaba.com to source products for your business? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.

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