Following the meteoric rise of digital commerce in the past year, and the run of physical businesses, small and large, to the world’s largest sales platforms, the new company we are establishing is in line with the e-commerce worlds, enabling Israelis, store owners “To”.
Nella Digital Comoros Announces today that it has signed with Value Finance, a public company traded on the Tel Aviv Stock Exchange, a founding agreement to establish a new company that aims to provide loans and financing to merchants on e-commerce sites, by developing software tools designed to provide financing backed by collateral in the form of assets Online.
According to the agreement Nella Digital Commerce You will hold 60% in Israeli society and about 72% in a foreign company.
The new company will provide short-term credit to merchants and businesses that own digital stores on ecommerce sites such as Amazon, in a way that will allow them working capital for the online store, so that the same working capital will allow those shop owners, merchants and businesses as above short-term liquidity. In addition, the new company intends to act to provide financing in advance of payments to which the same merchants and businesses from various ecommerce sites are entitled, a mechanism that will help bridge cash flow gaps while charging interest as is customary in the market.
The transaction was signed with Value Finance, which operates in the field of non-bank financing, among other things through the provision of non-bank loans to businesses, and with Mr. Avraham Tzarfati and Mr. Ziv Eisner as directors in Value Finance. In the first phase, Value Finance undertook to provide the Israeli company with a total of $ 1,050,000; Of which $ 300,000 is in the form of an owner loan for the benefit of the new company, and $ 750,000 as a credit facility for the benefit of the loans granted by the new company.
The non-bank lending market in favor of global e-commerce merchants is on the rise. The volume of annual loans in this market is estimated at billions of dollars per year. PAYABILITY recently reported that it has already given over $ 3 billion so far, and by 2020 alone it has given over $ 1.4 billion.
Amazon currently has over 2.5 million active traders alone, of which about 15,000 are active traders from Israel, the vast majority of whom are not eligible to receive loans directly from Amazon or international financing bodies. This is a familiar problem to merchants, as receiving payments from Amazon to merchants is done once every two weeks. Thus the solution of the new venture gives an answer to a real need.