- Walmart Inc (NYSE: WMT) revealed it is partnering with Goldman Sachs Group Inc (NYSE: GS) to offer lines of credit to marketplace sellers
In a company announcement, Walmart Inc (NYSE: WMT) Vice President of Walmart Marketplace Jeff Clementz revealed that the retail giant is partnering with Goldman Sachs Group Inc (NYSE: GS) to offer lines of credit to marketplace sellers. Specifically, eligible Marketplace sellers are going to be invited to apply for lines of credit offered by Marcus by Goldman Sachs.
Walmart.com has been increasingly becoming customers’ primary shopping destination, largely due to the expanded Marketplace assortment. Over the last quarter, Walmart’s Marketplace delivered triple-digit growth.
Initially, approved sellers are going to have access to lines of credit from Marcus between $10,000 – $75,000, and the plans are to substantially increase the maximum line amount available in the future. The rates are competitive with the most creditworthy businesses qualifying for the lowest rates.
Lines of credit are known for offering businesses the flexibility to access money when they need — which could help them move fast and meet surging customer demand. And it could also help fund innovation.
“We often say we want to use our size and scale for good, and giving small businesses access to inexpensive capital is one way we’re doing this. Healthy small and medium businesses are critical for our communities to succeed, and we will continue looking for ways to help them navigate these unprecedented times,” said Clementz.
The credit lines have fixed annual interest rates of between 6.99% and 20.99%, depending on the business’s creditworthiness.
“We are very excited about this partnership with Walmart. We built our seller financing platform with flexible technology architecture to enable us to meet end consumer’s needs within the ecosystem of our partner,” added Abhinav Anand, managing director for Marcus by Goldman Sachs.
