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Ezbob: Using tech to outpace the banks

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It offers unsecured loans of £500 to £50,000 for up to 12 months with a decision typically made within less than an hour and funds made available on the same day.

Ezbob‘s decisions are based on business data you link-up to its website, such as HMRC information, your bank account and accounting platform.

This speed obviously comes at a cost – the cost calculator on its website gives an illustrative example of a total repayment cost of £27,118 for £25,000 borrowed over six months (dependant on circumstances).

The process used is somewhat evocative of the way consumer payday lenders function, but when applied to business lending this needn’t be controversial.

Co-founder and business development director Sharone Perlstein says Ezbob’s technology-driven approach is what enables it to deliver business funds at such a speedy rate – and to lend to businesses deemed too risky by other sources.

“We’re looking at real-time data which allows us to make better decisions and quicker decisions and there’s no need for human interaction,” he says – although in some cases when the machine can’t make a decision the case will be passed to a human underwriter.

He says in February the company lent £1m, rising to £1.2m in March and was on track (at time of interview) to do £2m in April. It’s also received equity investment from the government’s Angel Co Fund and received the backing of the EU’s European Investment Fund. 

“People think of lending as ‘Ahh I’ve got to go to the bank, I’ve got to wait in line, I’ve got to prepare paperwork, business plans, financials, I’ve got to go to my accountant’.

“You don’t need to do that anymore. There’s enough data out there where companies such as ours can come on in, fill out a form and not waste your time.”

Read more on the future of funding. 

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