Alibaba Holdings Assign U.K. Startup Companies to Provide Financing to British Companies
Alibaba Group Holdings enlisted the work of two U.K. startup companies that will provide financing for small British businesses that are looking to buy from Chinese suppliers and aims to help cash strapped firms to gain access into China’s economy.
A partnership between iwoca Ltd. And ezbob have announced that Alibaba is the first Chinese firm in Europe and is intending to provide short term working capital to businesses, otherwise that have trouble securing funds from banks. A British arrangement is the same to the recently announce tie up with LendingClub Corp. in the U.S.
These British firms are looking for cheap source components or goods from Chinese suppliers and apply for credit online. These startups have reviewed their business track records, tax returns and other pertinent data to provide a swift decision. These startups want to make financing as easy as possible for Britsh companies that are doing business with Alibaba.com
Alibaba unlike LendingClub has a peer tp peer matching service and iwoca and exbob will provide the financing themselves as they have already lend to eBay and Amazon.com.
Exbob come from a British colloquialism for a shilling and that trading name for Orange Money Ltd. The four year old company has the backing of the British government Angel CoFund and loans are guaranteed by the European Union. Iwoca secured financing from investors including Global Founders Capital and Redline Capital. Both startups will provide micro loans of 50,000 pounds and to qualified firms are anticipating interest rates of 0.75 percent to 2 percent month to month basis.