RV OnlineShop Looks Back On His Experience E-Commerce
RV OnlineShop is the first project that has been posted on E-Commerce. On May 29, 2015, it also became the first project funded by the crowdfunding site.
The co-founder of RV OnlineShop has agreed to return to this first crowdlending campaign and to tell his story with E-Commerce.
Can you present your activity?
I founded RV OnlineShop in 2009 with my best friend. RV OnlineShop is an online sales site of exceptional gourmet products. We market more than 1500 references : foie gras, condiments, spices, wines and spirits, teas, chocolates, … On RV OnlineShop.com, you will find above all products of superior quality.
How did you hear about crowdlending?
We had already heard about crowdfunding as a new way of financing for businesses. It is true that it is expanding! At first, we looked at equity. Finally the founder of E-Commerce, contacted us when we were looking for an alternative way of financing the traditional banking system. This first contact with the crowdlending fell perfectly.
Why did you use crowdlending for your loan?
Our goal was to continue to grow and grow our business . We did not want to wait and block our growth for lack of financial means.
Crowdlending primarily allows you to unlock funds very quickly . But it has other advantages, for example to gain notoriety . As the platform communicates about our project, we inevitably have repercussions: visitors discover our site and are interested in our activity. In addition, the audience of E-Commerce, composed of private investors, corresponds perfectly to our target and our products can interest them.
The rates offered by the crowdlending are higher than those of a traditional bank, why did you choose this solution?
While the rates are higher, we preferred to release € 50,000 of funds with a rate of 7.24% rather than take the risk of stopping the growth of our company. We did not want to solicit our bank again.
And why not go through equity crowdfunding?
We inquired about equity crowdfunding, but we quickly discovered that the platforms were asking us to sign an exclusive contract . This contract meant we could not get other funds, other investors elsewhere. This clause embarrassed us and we were not ready to take the risk of investing in equity. Through crowdlending, we have been able to diversify our sources of financing : equity through our main investor, a bank loan and a E-Commerce loan.
How did you promote the campaign?
On our side, we mainly communicated on social networks. We have regularly invited our Facebook and Twitter communities to discover our project and fund it on the platform.
But E-Commerce also provided support, we benefited from its communication media, its networks on Facebook and Twitter to talk about our project.
Would you recommend crowdlending to entrepreneurs in your relationships?
Absolutely ! I have already started. From the moment the file is validated by the platform everything goes very quickly, this means of financing is very interesting. Unlike banks, the analysis of files is done with more flexibility, and we do not need to multiply bonds or pledges. This also explains a higher interest rate, since it makes sense to reward the risk taken by the lender. Banks are more and more cautious, crowdlending then becomes a financing alternative for serious SMEs.
Looking back, what do you think about your experience with E-Commerce?
It’s a very good experience! Funding for the project took a little longer than expected but we made regular points with the E-Commerce team on the progress of the funding and the ongoing communication actions. We had very good relationships with the team.
The fact that we are the first project funded on E-Commerce is a real pride for us!
Looking forward, we are confident that E-Commerce will continue to grow and support innovative SMEs in their growth.