Zip Co (ASX:Z1P) - Founders Peter Gray (left) and Larry Diamond (right)
Founders Peter Gray (left) and Larry Diamond (right)
Source: Sydney Morning Herald
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  • Zip Co (Z1P) has launched Zip Business by partnering with online marketplace eBay
  • The company will offer 40,000 of eBay’s Australian small and medium-sized businesses access to working capital finance via the eCommerce site
  • As part of the official launch, Zip is bringing its small and medium enterprise lending provider, Spotcap, into the Zip Business portfolio
  • Zip also agreed to a $100 million debt funding facility with U.S. firm Victory Park Capital Advisors to fund the Zip Business receivables
  • The company is up 20.5 per cent on the market this morning and is trading for $9.12 per share

Zip Co (Z1P) has launched Zip Business by partnering with online marketplace eBay.

This partnership will see Zip offer 40,000 of eBay’s Australian small and medium-sized businesses access to working capital finance via the eCommerce site.

The business agreement is designed to give merchants the freedom to purchase inventory, cover short-term expenses such as marketing campaigns and manage cashflow.

Co-founder and Chief Operating Officer Peter Gray is excited to launch Zip Business.

“Zip is extremely excited to formally 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,” he said.

“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,” he added.

As part of the official launch, Zip is bringing its small and medium enterprise lending provider, Spotcap, into the Zip Business portfolio.

Debt funding

Zip has also agreed to a $100 million debt funding facility with U.S. firm Victory Park Capital Advisors to fund the Zip Business receivables.

The funds will give Zip the flexibility and capacity required to support the launch of Zip Business.

Zip is up 20.5 per cent on the market this morning and is trading for $9.12 per share at 11:06 am AEST.

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