EZBOB finds that Amazon is competing with it in the Small Business Financing Sector

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Amazon has entered the Small Business financing sector by offering loans to a selected portion of Amazon’s merchants, directly competing with EZBOB in the online seller financing space.

According to the Telegraph the new program is called Amazon Lending and sellers on the company's marketplace have been sent emails offering loans from Amazon Capital Services, a unit of Amazon, claims Scot Wingo, chief executive of e-commerce advisory firm ChannelAdvisor. Amazon’s new venture of providing loans for ecommerce has made it a direct competitor to EZBOB in the online seller financing space.

By offering Amazon seller loans Amazon is providing the capital their merchants need to grow their business. Since Amazon earns a commission from a seller’s sales if their merchant's revenues increase because of additional financing, Amazon will earn more profits.

EZBOB recognized that Small Business are underserved by the traditional banking system when it comes to lending to these enterprises. In 2011 EZBOB launched its proprietary technology which grants online merchant loans. “It’s gratifying to see that Amazon has acknowledged that Small Business needs financial backing and that they are looking out for their marketplace’s sellers” stated Tomer Guriel, CEO of EZBOB. “EZBOB’s offering is different than Amazon’s in that we lend money with no strings attached, meaning we don’t require our borrowers to use the funds on any specific channel. Our customers are free to use the working capital we provide to sell on any channel, be it on Amazon, eBay, Play.com. We don’t tell our customers what to do with the money we lend them, although the majority of our customers are buying inventory to sell online” added Guriel.

EZBOB looks at the online business as a stand alone borrower; historical data, customer satisfaction, inventory and other data is collected about the online store. EZBOB then makes a lending decision on that data and presents the online merchant with a customized offer. By offering online merchants loans for eCommerce EZBOB is pioneering the way sellers can apply and receive funding.

EZBOB is continuing to develop connectivity to additional data sources so that it can reach a wider e-commerce audience. "Today we are finding that online sellers are selling across multiple channels. We are now expanding and concluding partnership agreements with e-commerce software providers" concluded Guriel.

About

EZBOB is a web-based UK financing company dedicated to supporting online merchants’ growth. The Company has developed a sophisticated and automated online platform which provides Amazon and eBay seller loans to E-tailers. EZBOB currently offers up to £40,000 for any qualified E-tailer. Online sellers can now grow your profits by simply applying online at ezbob’s site. There is no paperwork required and the application takes under ten minutes to complete; qualifying applicants will receive their instant working capital in 30 minutes or less.

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Deborah Reid
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