Alibaba have announced strategic partnerships with both ezbob and iwoca to help small businesses access funding more easily when purchasing from China based suppliers on Alibaba.con.
Through the partnerships and a new product called Alibaba.com e-Credit Line, UK small and medium businesses will be able to overcome a major hurdle in their sourcing cycle posed by financing upfront payments to suppliers.
When a UK buyers wants to finance inventory from a China based supplier on Alibaba they can apply for a line of credit, receive approval and draw on the loan funds to finance purchases without ever leaving the Alibaba platform. The funds are disbursed directly to the supplier in China facilitated by either ezbob or iwoca.
The partnership offers two distinct tiers of lending, through iwoca businesses can apply online within five minutes to receive loans of up to £50,000 for up to six months. Through ezbob UK companies can apply to borrow amounts from £50,000 to £120,000 for up to 15 months.
Russell Gould, COO, ezbob commented: “Our partnership with Alibaba will create a compelling offer for UK buyers and will also benefit Chinese suppliers” and went on to predict that it will help fuel a significant increase in UK trade volume on Alibaba. Russell added that ezbob welcomes the opportunity to help small businesses to negotiate with suppliers from a position of strength with readily available funds.
Small business have been failed by the banks due to lack of available financing and this has held back UK economic growth according to Christoph Rieche, CEO of iwoca who said “This deal gives small businesses the muscle they need to quickly finance deals and trade in the global market. The partnership with Alibaba highlights the dramatic growth in alternative forms of lending and the economic shift away from established bank lenders“. iwoca expect to finance over £100m worth of deals over the next 12 months.