GMO-EP Expands Fintech Services to Support SME Growth ~Lending Using freee's Cloud Accounting Data~

December 19, 2019

GMO Epsilon, Inc.

GMO Epsilon, Inc. (President & Chief Executive Officer: Kazunari Taguchi hereinafter referred to as "GMO-EP"), a consolidated company of GMO Payment Gateway, Inc. in the GMO Internet Group, has partnered with free Daisuke Sasaki e finance lab Co., Ltd. (Representative Director: Kenta Takechi, hereinafter referred to as "freee finance lab") to provide " GMO Epsilon transaction lending, which can be financed in as little as two business days for businesses using the cloud accounting software freee (hereinafter referred to as "accounting freee"), will be available from today, December 19, 2019 (Thursday).

GMO-EP Expands Fintech Service to Support SME Growth ~Lending Using freee's Cloud Accounting Data~

【Background and Summary】

Growing SME and sole proprietors need financing to ensure stable business operations and further expansion. However, in order to obtain a loan, it is often necessary to submit multiple documents, including financial statements, as well as collateral or guarantees, which is time-consuming and risky, and it takes several weeks to review, making it difficult to raise funds quickly.
Against this backdrop, since March 2015, GMO-EP has been providing GMO Epsilon transaction lending to e-commerce businesses (merchants) using the Epsilon payment Service, which enables them to quickly finance e-commerce businesses (merchants) by making credit decisions based on daily transaction data (transaction data). More recently, we have started using daily transaction data such as invoice accounting data and nursing care management data for credit decisions, and by doing so, we are developing services for SME other than e-commerce businesses.
In order to expand the data used for such credit decisions and further accelerate SME 's growth support, GMO-EP will become a loan provider of "Offer-type Loan", a loan service that utilizes "accounting freee" data provided by freee finance lab, and will provide "GMO Epsilon transaction lending" for corporations and sole proprietors using "accounting freee".
GMO-EP will continue to develop various Fintech services to support the growth of small businesses, startups, SME, and sole proprietors.

[About "offer-type loans" provided by freee finance lab]

"Offer-type loan" is a loan service for small businesses that allows you to check the availability of loans and the results of estimating loan conditions (loan possible amount, etc.) in advance by analyzing financial data accumulated in "Accounting freee".
Customers who wish to obtain a loan can apply from among multiple loan providers through "Offer-based financing" of Freee Finance Lab from "Accounting Freee". By using this service, there is no need for complicated work such as preparing documents and procedures necessary to apply for a loan, and you can see the approximate loan amount and interest rate, making it easier to make business plan and investment plans ^(*1).
GMO-EP will provide financing under the following conditions as a financing partner of "Offer-type Financing".

■ GMO Epsilon transaction lending loan conditions for "offer-type loans"

Loan Targets	Corporations and sole proprietors using "Accounting freee"
Loan Amount	Corporation: 300,000 yen to 3 million yen, sole proprietorship: 150,000 yen to 3 million yen
Lending Interest Rate	4.5%~13.5%(real annual rate)
Repayment period and number of repayments	6 months, 6 repayments
Payment Type	Even Total Payment (Principal and Interest)
Collateral/Guarantor	Not required
Late Fee	20.0% (real annual rate)

(*1) GMO-EP is required for each use, and it may not be available depending on the screening results.

About Freee Co., Ltd. and Freee Finance Lab Co., Ltd.

With the mission of "making small businesses the leading role in the world," freee provides services such as "Accounting freee" and "Personnel and Labor freee," cloud accounting software that streamlines operations. By providing "Cash Flow Improvement Navi", freee Finance Lab has realized a service that can actually take steps to improve cash flow suitable for individual users by utilizing big data for cash flow, which is a major issue for small businesses.
Freee and the Freee Finance Lab will continue to use the power of data and technology to create a world where small businesses grow stronger and smarter.

【About GMO Epsilon, Inc.】

GMO-EP is a payment processing services service provider with no initial costs or transaction processing fees ^(*2). As of the end of September 2019, 32,373 e-commerce stores are using the service. Just by contract GMO-EP, you can use various payment method and delivery services such as Credit card payment, CVS Payment, E-wallet, smartphone carrier payment, etc. at once, without the need to build a system for each payment company. Since the product price collected from the buyer and the freight settlement for delivery are also carried out in one go, it is possible to save a lot of time and cost. In addition, in order to support the smooth cash flow of e-commerce businesses, we also provide finance-related services such as lending and Remittance Service. TSE As a member of the GMO Internet Group, which is a partially listed company, we have been granted the Privacy Mark for the protection of personal information, and our system security standards are PCI DSS and ISMS, making it an environment that our customers can use with peace of mind.

*2 Transaction processing fee is a fee charged for each communication with a credit card company for credit card authorization (acquisition of an authorization number) and billing.

【Related Links】

"Offer-type financing" provided by Freee Finance Lab: URL : https://www.freee.co.jp/finance/business-loan/

GMO-EP: URL : https://www.epsilon.jp/

[Press Inquiries]

GMO Payment Gateway, Inc.
Corporate Value Creation Strategy Division

TEL: +81-3-3464-0182
FAX: 03-3464-2387
E-mail: pr@gmo-pg.com

GMO Internet, Inc.
Group Communication Department, Public Relations Officer, Ishii Nagai

TEL: +81-3-5456-2695
E-mail: pr@gmo.jp

【Inquiries about loan services】

GMO Epsilon, Inc.
Customer Support Groups

TEL: 03-3464-6211
E-mail: finance-support@epsilon.jp

【GMO Epsilon, Inc.】(URL: https://www.epsilon.jp/)

Corporate Name	GMO Epsilon, Inc.
Location	2-12-19 Shibuya, Shibuya-ku, Tokyo Token International Building Main Building 7th Floor
Representative	President & Chief Executive Officer Kazunari Taguchi
Business Description	■ Online sales payment processing company, payment collection agency and operations incidental to them
Capital	103,000,000 yen

[GMO Payment Gateway, Inc.] (URL: https://corp.gmo-pg.com/)

Corporate Name	GMO Payment Gateway, Inc. (TSE First Section Securities Code: 3769)
Location	1-2-3 Dogenzaka, Shibuya-ku, Tokyo Shibuya Fukurasu
Representative	President & Chief Executive Officer Issei Ainoura
Business Description	■ Comprehensive payment related services and finance related services
Capital	4,712 million yen

[GMO Internet, Inc.] (URL: https://www.gmo.jp/)

Corporate Name	GMO Internet, Inc. (TSE First Section Securities Code: 9449)
Location	Cerulean Tower 26-1, Sakuragaoka-cho, Shibuya-ku, Tokyo
Representative	President and Group Representative Chairman ＆ Chief Executive Officer Masatoshi Kumagai
Business Description	■ Internet infrastructure business ■ Internet advertising / media business ■ Internet finance business ■ Cryptocurrency business
Capital	5 billion yen