TikTok has officially entered the business financing arena with the launch of TikTok Shop Capital, offering sellers access to fast and flexible business loans. This new initiative allows TikTok Shop sellers to tap into financial resources without the hassle of traditional lending processes. TikTok partners with third-party lenders such as Parafin, Storfund, and Kanmon to provide these financing options. Notably, TikTok itself is not a lender but facilitates access to loans through its partners. The repayment processes vary; for instance, Storfund automatically deducts repayments from TikTok Shop payouts, while Parafin uses the associated business bank account for deductions. TikTok's financing options are invite-only, meaning sellers must receive a pre-qualified offer to access the service, which will be visible in their Seller Center under the Finances tab. This move marks a significant step for TikTok, expanding its support for small businesses and enhancing the platform's utility for sellers.
Read the full article here.