iwoca

Name of the product or service

eBay Flexi-Kapital

Votes: 51

Product or service description

eBay Flexi-Kapital by iwoca is an innovative, tailored financing solution for small and medium-sized enterprises (SMEs) operating on eBay’s marketplace in Germany. iwoca integrates eBay seller data into our processes to provide a tailored service, from using sales data in our underwriting process to calculating flexible loan repayments based on eBay sales. The problem it fixes is that it solves the issue SMEs face in obtaining timely, tailored, and hassle-free financing solutions when and where they need it. One of the primary hurdles for SMEs lies in securing funding that matches their operational requirements. Traditional lending processes often lack the adaptability and responsiveness needed by these businesses. eBay Flexi-Kapital resolves this by seamlessly integrating eBay seller data into its innovative approach. By leveraging this data, iwoca customises its financial services, utilising sales data within its underwriting process and devising flexible loan repayment structures based on eBay sales performance. This innovative offering provides direct, uncomplicated, and swift access to short-term working capital loans ranging from 1,000 to 1 million euros. Through automated processes, the majority of loan approvals occur in real-time, enabling merchants to receive decisions instantly for amounts up to €15,000, and access the capital within 24-48 hours of application for larger amounts. Repayments are flexible and tied to sales on the eBay platform, meaning that repayment amounts decrease during months with lower sales and increase with higher sales. Additionally, the loan can be increased to respond to sudden, unexpected, or seasonal fluctuations in demand, providing businesses with the type of flexibility we know they need when running a business.

Distinction from the competition
  1. Immediate access and streamlined processes: eBay Flexi-Kapital provides seamless access to financing options for eBay sellers from within their seller portal. In a few clicks, sellers can start a fully digital application where eBay sales data is shared via API and integrated into the underwriting process, with many sellers not needing to provide any documents and they will receive a decision after a short application.

  2. Tailored offers and flexible repayment structure: By integrating eBay data into our processes, iwoca is able to make intelligent decisions tailored to each business that applies. We offer sellers unparalleled flexibility by letting them choose the repayment mechanism that best suits their business.

For revenue-based repayments, we continue to integrate sales data into our processes and automatically take daily repayments - reducing the hassle of loan management and burden of larger repayments for the seller.

For fixed monthly repayments, sellers can choose between a 12 or 24 month term and repay early at any time, giving them the flexibility to only pay for how long they use the funds for.

  1. Empowerment of small businesses: At a time when obtaining traditional bank loans is increasingly challenging, eBay Flexi-Kapital provides a tailored solution for eBay-based SMEs. Our solution enables sellers to obtain the capital they require to seize growth opportunities, pre-finance inventory for a busy period, make strategic investments in technology, or help plug short term cash flow gaps - whilst not needing to worry about repayments in quieter periods.
Product or service innovations

Product innovation of the last 12 months has been the side-by-side offering of Revenue Based Loan (RBL) and Flexi-Loan (FL) repayment options (i.e. upfront fee vs. instalment loans) → renamed to eBay Seller Capital (eBay Händlerfinanzierung).

This means that German business owners selling on eBay have even more flexibility when it comes to deciding what type of capital they need and how they would like to repay it. This optionality is crucial when SME owners are in situations where they must move quickly and take advantage of investment opportunities, or just plug cash flow gaps which inevitably arise.

Customer case study

SITUATION

Mopedz 69, a specialist in Simson mopeds located in Saxony, Germany, identified a significant growth opportunity and came to iwoca for financial assistance so that he could leverage it.

Business Expansion Initiatives

  1. Merchandise: Mopedz 69 invested funds into expanding their merchandise offerings. This included developing and introducing new merchandise products to diversify the product line and strengthen the brand's image.

  2. Inventory Enhancement with Parts Expansion: A portion of the investment was used to expand the inventory of moped parts, stocking up on critical components. This allowed for improved availability and quick provision of essential spare parts for customer needs.

  3. Technological Advancement: Another portion of the investment was directed towards enhancing the technological infrastructure. This involved optimising systems and processes to increase operational efficiency and improve the company's overall performance.

SOLUTION: eBay Flexi-Kapital by iwoca

To address the funding requirements for merchandise expansion and inventory enhancement, Mopedz 69 strategically chose the eBay Flexi-Kapital offered by iwoca. This flexible finance support perfectly suited the company's growth trajectory. This feature empowered the company to repay the loan utilising a specific percentage of their monthly turnover. Such adaptable repayment terms streamlined the loan process and boosted liquidity management, aligning seamlessly with the fluctuating dynamics of Mopedz 69's business operations.


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