Launch of Easol Capital to provide fast and efficient financing that will bring a unique boost to the festival market
LONDON–(BUSINESS WIRE)–Easol, a leading travel and experience commerce technology company, announces the launch of Easol Capital, a new tailored financing solution for festival organisers. Easol Capital will create a fairer, more flexible and transparent funding process that puts control back in the hands of festival organizers.
EXISTING ADVANCED MODEL CHALLENGE: Finding capital can be difficult for SMEs in the events and travel sectors, as traditional finance providers are reluctant to lend post-pandemic. Difficulties in obtaining capital are compounded by the current cost of living crisis and ongoing supply chain issues, meaning having a reliable cash flow is more important than ever to securing the future of business. ‘a festival. Until now, some ticketing platforms have sought to fill this void by offering cash advances, but this comes at the expense of festival organizers. While advances are theoretically free, festival organizers have often been bound by contracts with punitive clauses regarding ticketing fees and long exclusivity, which limits organizers’ control over their own fees and booking data:
- Big costs: With traditional cash advances, festival and event organizers are charged up to 15% of their total revenue, plus other fees.
- Short steps ahead: Advances are usually only extended for a few weeks, which does not always correspond to the sales cycle of a festival.
- Retained benefits: Above all, 100% of sales are sometimes withheld until the loan is repaid, which makes cash flow extremely difficult for festival organizers to manage.
BREAK ADDICTION: Easol Capital is a tailor-made solution for festival organisers. It is designed taking into account the festival’s sales cycle and allows organizers to regain control of their cash flow. Easol has partnered with specialist lending companies to provide easy access to finance – here’s how it works:
- Fair loan terms: Loans facilitated by Easol Capital do not have an interest rate, but instead organizers pay a fixed fee which is a percentage of the amount borrowed, typically 5-12%, so the cost of the loan is always transparent and there are no hidden fees. To cover the cost of borrowing, the organizers can, if they wish, absorb the cost of the loan in their reservation fees.
- Flexible repayment options: Refunds occur automatically as a fixed percentage of weekly sales and scale with revenue. So if sales slow down, so do refunds. Most loans will be repaid within 4-8 months, and organizers can prepay or easily access more capital if their circumstances change.
- Quick and easy application process: Completing an application is free and only takes a few minutes. The organizers receive a decision within the day and, if approved, can withdraw the loan immediately.
The above is subject to the lending terms agreed with our festival organizers by our lending partners. Currently, Easol Capital can facilitate (subject to the festival organizer meeting our partners’ requirements) the provision of funding of £1,000-1.5 million to festival organisers, with loans currently underway in the UK UK and USA. There are active plans to increase loan sizes and enter most European markets over the next few months.
Ben Simpson, co-founder and CEO of Easol, explained: “We believe that festival and event organizers have not had the flexibility they need from many traditional ticketing platforms and funding solutions for far too long. We are very proud to launch Easol Capital to to be able to offer an alternative that works with organizers rather than tying them to terms that might not work for them in terms of cash flow and long-term flexibility.
Benjamin Sasse, co-founder of Meadows in the mountainscommented : “We got partner funding from Easol Capital in its beta stage, and it was a game-changer for our festival. The whole application process was so easy and we had the money in our bank within 24 hours. Having access to capital during this period is crucial for us in order to be able to pay people on time and manage our cash flow over the various stages of the festival. Easol is the only supplier in the market that offers the flexibility we need. They understand how the sales cycle works and have created a perfect solution.”
Easol will present the advantages of Easol Capital during its Showcase of festivals event broadcast globally on September 22, 2022. If you would like to learn more about Easol Capital, please sign up to speak to a member of our team here.