We understand that growing your business takes time, money, a lot of hard work and even more creativity. A traditional approach to mitigating cash flow shortages has been to utilize invoice financing, merchant cash advances and bridging loans as avenues to quick, but expensive cash. All that changed with the alternative lending boom. Ezbob financing can be much more than just an avenue for short-term quick cash. If used strategically, our financing can open a new pathway to growing your profits.
Increase your return on investment by using ezbob’s Cash
Your retail business is preparing for the holiday rush. You’ve struck an agreement with a supplier to purchase £20,000 of overstocked inventory at a 25% discount, but have zero cash on hand to make the deal. With a limited amount of time to take advantage of the discount, you opt for a three-month unsecured loan with ezbob for the full amount and access to the funds within an hour. Considering a typical margin of the inventory sold, a three-month loan to cover the £15,000 purchase of inventory can solve that problem and increase revenue simultaneously. With an average margin per item sold at the original price of £20,000 a net profit of £9,250 vs £5,000 at full price. You have just grown your profits. The cost of the loan to the business is a £750 flat fee; compared to giving up a percentage of future sales with merchant cash advances, or payable invoice revenue with invoice financing. You can pay your loans off at any time with no additional fees or penalties, and save additional money With ezbob, there are no percentages taken from your future revenues. You pay for the money you borrow, that’s it. An example - if ezbob was used to take advantage of the discount vs receiving no discount on the inventory
|Without ezbob||With ezbob|
|Loan costs (3 months)||£0.00||£750.00|
|Cost of Goods Sold||£5,000.00||£5,000.00|