EZBOB launch small business finance offering
The EZBOB team have now fully launched their service in the UK making finance available to fuel online sellers growth and naturally the team celebrated the launch with a glass of bubbly!
Why start a new finance company?
Businesses and people with good credit are finding it difficult to qualify for a loan. When a e-retailer turns to the bank for a loan he/she finds the process old fashioned- time consuming and tedious. Banks require business plans, financial statements, as well as some sort of collateral before approving a loans. A borrower needs to physically visit a branch and even when he/she follows the required loan process, there is no certainty of approval and the process takes weeks to reach a conclusion.
According to the IMRG, the digital commerce market currently provides employment for over 730,000 people in the UK. It is estimated that there will be 1.5 million UK staff working in ecommerce by 2015.
The problem is that High street banks and other financing companies are simply not lending to the e-retail market segment because they simply don’t understand the business model of “small business enterprises on the net”.
What EZBOB offer
EZBOB’s solution is instant. A customer fills out an application at the click of a button. Instantly, a borrower can link one or several eBay or Amazon shops to EZBOB. Also, borrowers can link up their PayPal account which can increase the amount of funding that EZBOB will grant. EZBOB never sees a borrowers user name or password, these are entered on the secured web pages of Amazon, eBay or PayPal. EZBOB’s is granted a view only and it’s systems look at trading history, customer feedback, sales, inventory and other parameters – all this is done so that the offered financing amount falls within the businesses ability to service the debt.
EZBOB looks at the merits of each online business before making any loan offer. This is quite different than Wonga for Business since they have a very strong background in personal credit checks from their payday business. EZBOB also takes into consideration a personal past payment history, but puts a heavy risk weighting on the business itself.
The system is 100% automated. Even repayments are handled automatically. A borrower is required to enter his debit card and agree to an automatic repayment schedule. Borrowers can pay early at any time and no penalties are charged for this. Only pay for the time the money is with you.
Who is EZBOB For?
Currently EZBOB is targeting the 250,000+ online sellers who sell on Amazon and eBay and eventually plan to roll out to additional UK marketplaces.
In less than 10 minutes the system will:
• Guide the seller through a simple, secure , quick , and seamless online application process
• Assess the seller’s eligibility using our proprietary internal credit scoring system
• Verify seller’s historical operating performance and assess seller’s ability to service debt
• Verify seller’s identity to prevent fraud
• Provide a customized financing proposal
• Immediate transfer of funds
The customized financing proposal will be :
• Unsecured (personal or director guarantee)
• Short-term (3 – 6 months)
• Up to £20,000 per borrower
• Cost 2-7% per month
• Clear repayment schedule, with out any early repayment penalties
• No hidden fees
• No covenants on seller’s business
EZBOB’s loans are unsecured and require no liens, security, or collateral from the customer. The loan terms, amount of financing, and interest rates from EZBOB are customized to each customer taking into consideration the merits of the online business.