ShipBob is helping brands and merchants gain access to new financing.
The supply chain and fulfillment platform provider has launched ShipBob Capital, enabling its U.S. customers to now apply for working capital through the company.
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J.P. Morgan-backed B2B payments platform Slope is partnering with ShipBob to operate the financing program. Slope, which offers short-term financing as one of its primary features, can give merchants a line of credit that can be withdrawn at any time.
ShipBob itself will not be doing any of the lending. The third-party logistics (3PL) firm does not evaluate customers’ loan applications, nor extend a line of credit to any applicant.
Eligible merchants can get approved for up to $250,000 instantly, according to the 3PL. To qualify, businesses must have an employer identification number and account for more than $100,000 in annual revenue.
ShipBob clients can access “up to millions” of dollars in as soon as two business days, choosing from a variety of repayment plans with annual interest rates as low as 9 percent. Slope loans the capital to businesses via direct deposit into their bank account.
The application process takes roughly five minutes to complete and is designed to simplify the financing process with more transparent terms, ShipBob says. The company also says the solution will not include hidden fees or lengthy contracts.
Claudio Storelli, executive chairman of soccer gear manufacturer and seller Storelli Group, said his company got approval for the program in January. He highlighted in a statement that the brand gained access to a six-figure line of credit less than 24 hours after applying.
Dhruv Saxena, ShipBob CEO and co-founder, said the 3PL struck up the partnership with Slope to assist e-commerce business owners as they deal with day-to-day challenges. Merchants may need to acquire an upfront investment to hire more staff or cover other expenses. These sellers are also tasked with scaling to meet customer demand, all while better managing inventory turnover.
“Our merchants can access the funding they need to invest in their business and scale, whether that means stocking up on more inventory or launching new products, without worrying about cash flow constraints,” said Saxena in a statement. “We want to help enable our merchants to compete and thrive in the fast-evolving world of e-commerce by providing the resources they need to unlock their full potential in the most convenient way possible.”