Zip Co has launched Zip Business in partnership with eBay Australia to offer local small and medium-sized businesses access to working capital via eBay marketplace.
The partnership between eBay and Zip Business is designed to give merchants the ability to purchase inventory, cover short-term expenses such as marketing campaigns, and manage their cashflows, via access to flexible lines of credit.
As part of the official launch, Zip is bringing the Spotcap brand into the Zip Business portfolio to leverage its deep credit experience and combine it with Zip’s risk decisioning and real-time onboarding to scale the SMB Buy Now Pay Later offering.
Zip co-founder and chief operating officer, Peter Gray said: “Zip is extremely excited to launch its Zip Business platform to create a suite of products for the small business community, a segment that has been underserved by the traditional lenders in recent years.
“This comes at a time when Australia’s small businesses are confronting the extreme challenge of COVID-19 which has created enormous pressure on cashflow and ongoing business investment. A thriving small business community is critical to the health of the Australian economy and we are deeply committed to supporting the growth of these important businesses.”
Zip has entered into a $100 million debt funding agreement with US firm Victory Park Capital Advisors to fund the Zip Business. The facility will give Zip the flexibility and capacity required to support the launch.