Ezbob Launches Microfinancing Facility for Online Sellers in the UK
Poster: SySAdmin
Posted on September 17, 2012 at 2:56:02 AM
Ezbob Launches Microfinancing Facility for Online Sellers in the UK
LONDON, September 17, 2012 /PRNewswire/ --
10 minute access to funds to stock up for Christmas sales rush
Ezbob, a new microfinancing company for online merchants, has launched its service in
the UK this week. It will make working credit of up to GBP20,000 available instantly to
eBay and Amazon Marketplace sellers through automated underwriting.
According to its CEO and Co-founder, Tomer Guriel, Ezbob is aimed at small e-retailers
typically with under GBP1million in annual turnover, for whom securing funding from
traditional sources can be challenging.
"Traditional credit providers simply do not have the know-how and technology needed to
cater to this unique market's financing needs," he explained. "Banks struggle to assess
online sellers adequately, given their small size, low turnover and the intangibility of
their business. Furthermore, conventional credit approval takes between five and eight
weeks - not to mention all the paperwork involved. This is too protracted for online
sellers who often need rapid access to funds for their growth."
According to IMRG (Interactive Media in Retail Group) UK e-retail sales in 2012 are
estimated to reach GBP77billion, and e-retail now accounts for 17 per cent of the total UK
retail market.
Ezbob's UK launch comes at a time when online merchants will be looking to buy stock
or hire more staff ahead of the Christmas sales rush.
How it works
Unlike banks or trade finance companies, the entire application and underwriting
process is automated and typically takes less than 10 minutes.
Once applicants have entered their online business's details, Ezbob's systems
automatically access all available information. Importantly, the company's credit scoring
does not rely solely on traditional credit rating agencies. It uses information available
through sources such as Amazon, eBay and Paypal to evaluate sellers' operating performance
and their ability to service debt. This process also takes into account the customer
satisfaction ratings the business has received online.
Depending on Ezbob's internal rating an e-retailer can borrow up to GBP20,000 for a
period of three to six months and at a monthly rate of 2%-7%. Loans are unsecured and only
require a personal guarantee. There are no early repayment fees and, according to Guriel,
no 'hidden' charges.
The company is currently able to finance any qualified e-retailer who has a shop on
Amazon or eBay, and is planning to extend the service to e-retailers selling on other
marketplaces such as Google Shopping, Play.com and Yahoo Shopping.
Reinventing e-retail financing
One of Ezbob's beta-testers, Roy Loewenber from WWRetailers, with shops on both Amazon
http://www.amazon.com/shops/A1Y7VBSGYYHY4P and
eBay http://myworld.ebay.com/wwretailers, commented: "For me, Ezbob has
re-invented how a business like mine can acquire financing. The problem I faced as an
online seller is that traditional banks do not understand the business of e-retail. I
don't have time for sophisticated projections, business plans and visits to the local
branch."
"My business is very straightforward: I source product and sell it online. My pricing
is strongly dependent on competitors' prices, and my profit heavily reliant on the
purchase price I pay. In the past, cash flow issues would have stopped me from purchasing
discounted product. Ezbob's instant online credit service has resolved this once and for
all."
About Ezbob
Ezbob is the trading name of Orange Money Ltd., a privately-held UK company. It was
founded in 2011 by Tomer Guriel, a former investment banker at JP Morgan alongside
entrepreneur and financier, Sharone Perlstein.
Ezbob secured GBP450,000 in seed funding from Amir Bramely at Extreme Credit Systems,
in November 2011, and completed a Series A funding round earlier this year, raising a
further GBP2 million led by Hagshama Fund.
For more information:
Andrea Willige, Six Degrees
Andrea.Willige@sixdegreespr.com
+44-(0)118-900-0860
Business development enquiries:
Sharone Perlstein, Ezbob
Email: Sharonep@ezbob.com
Ezbob
LONDON, September 17, 2012 /PRNewswire/ --
10 minute access to funds to stock up for Christmas sales rush
Ezbob, a new microfinancing company for online merchants, has launched its service in
the UK this week. It will make working credit of up to GBP20,000 available instantly to
eBay and Amazon Marketplace sellers through automated underwriting.
According to its CEO and Co-founder, Tomer Guriel, Ezbob is aimed at small e-retailers
typically with under GBP1million in annual turnover, for whom securing funding from
traditional sources can be challenging.
"Traditional credit providers simply do not have the know-how and technology needed to
cater to this unique market's financing needs," he explained. "Banks struggle to assess
online sellers adequately, given their small size, low turnover and the intangibility of
their business. Furthermore, conventional credit approval takes between five and eight
weeks - not to mention all the paperwork involved. This is too protracted for online
sellers who often need rapid access to funds for their growth."
According to IMRG (Interactive Media in Retail Group) UK e-retail sales in 2012 are
estimated to reach GBP77billion, and e-retail now accounts for 17 per cent of the total UK
retail market.
Ezbob's UK launch comes at a time when online merchants will be looking to buy stock
or hire more staff ahead of the Christmas sales rush.
How it works
Unlike banks or trade finance companies, the entire application and underwriting
process is automated and typically takes less than 10 minutes.
Once applicants have entered their online business's details, Ezbob's systems
automatically access all available information. Importantly, the company's credit scoring
does not rely solely on traditional credit rating agencies. It uses information available
through sources such as Amazon, eBay and Paypal to evaluate sellers' operating performance
and their ability to service debt. This process also takes into account the customer
satisfaction ratings the business has received online.
Depending on Ezbob's internal rating an e-retailer can borrow up to GBP20,000 for a
period of three to six months and at a monthly rate of 2%-7%. Loans are unsecured and only
require a personal guarantee. There are no early repayment fees and, according to Guriel,
no 'hidden' charges.
The company is currently able to finance any qualified e-retailer who has a shop on
Amazon or eBay, and is planning to extend the service to e-retailers selling on other
marketplaces such as Google Shopping, Play.com and Yahoo Shopping.
Reinventing e-retail financing
One of Ezbob's beta-testers, Roy Loewenber from WWRetailers, with shops on both Amazon
http://www.amazon.com/shops/A1Y7VBSGYYHY4P and
eBay http://myworld.ebay.com/wwretailers, commented: "For me, Ezbob has
re-invented how a business like mine can acquire financing. The problem I faced as an
online seller is that traditional banks do not understand the business of e-retail. I
don't have time for sophisticated projections, business plans and visits to the local
branch."
"My business is very straightforward: I source product and sell it online. My pricing
is strongly dependent on competitors' prices, and my profit heavily reliant on the
purchase price I pay. In the past, cash flow issues would have stopped me from purchasing
discounted product. Ezbob's instant online credit service has resolved this once and for
all."
About Ezbob
Ezbob is the trading name of Orange Money Ltd., a privately-held UK company. It was
founded in 2011 by Tomer Guriel, a former investment banker at JP Morgan alongside
entrepreneur and financier, Sharone Perlstein.
Ezbob secured GBP450,000 in seed funding from Amir Bramely at Extreme Credit Systems,
in November 2011, and completed a Series A funding round earlier this year, raising a
further GBP2 million led by Hagshama Fund.
For more information:
Andrea Willige, Six Degrees
Andrea.Willige@sixdegreespr.com
+44-(0)118-900-0860
Business development enquiries:
Sharone Perlstein, Ezbob
Email: Sharonep@ezbob.com
Ezbob