eBev is offering three days guaranteed payment to suppliers to support both venues and suppliers as they emerge from lockdown at the busiest time of year.
Ian Harris, CEO of eBev, said, “Considering the potential capital crunch the industry faces, this financing may be the lifeline that many businesses need to get going again.”
“eBev Trade will assist businesses to get back on their feet quicker with improved cash flow and limited risk in selling to venues that are themselves struggling to get back to normal trading. Our platform offers tangible benefits to both sides of the beverage community.”
eBev suggests that the challenges of re-opening have not been fully considered and that a credit crunch looms as both New South Wales and Victoria emerge from lockdown.
They say that on the one hand, venues without stock and cashflow need to fill their cellars. While on the other, suppliers could face little or no income for 45 days or longer, are likely to have confidence that venues will be able to pay, even while they yet wanting to supply their venues with more stock.
All this combines to generate a squeezing of the market and working capital. eBev predicts that for the on-premise trade, the first 3 months of re-opening look daunting:
- Most venues will have some cashflow issues, meaning little money to restock and likely backdated bills
- Venues will face substantial reopening costs: cleaning of soft and beer lines, venue cleaning and limited staff resources and
- Suppliers held stock will likely go quickly, but suppliers will then have to pay for more stock to supply venues before the cash arrives from the initial reopening orders.
The new eBev Trade service guarantees payment to suppliers within three days and aims to reduce credit risk while enabling beverage businesses to grow as beverage ordering, invoicing, and payments are consolidated into the platform.
“eBev looks to strengthen the Supplier/Venue relationship with all ordering, invoicing, financed payment options and data entry reduction through accounting and beverage systems integration. The platform aims to make business easier for both sides,” explained Mr Harris.
Founded in 2015, eBev has facilitated over 90,000 orders through the platform and enables over $150 million of annual orders. eBev Trade has recorded a robust growth in 2021 despite COVID headwinds, onboarding over 1,500 venues nationwide with over 150 brands now selling via eBev Trade.
