EBay deploys integrated financing platform to UK SMEs
- eBay is embarking on lending with a new product suitable for 300,000 UK sellers on its platform.
- the The program follows recent SME-focused lending initiatives from other retail platforms.
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eBay embarks on lending with a new product suitable for 300,000 UK-based small and medium-sized enterprises (SMEs) who are sellers on its platform. The product, called Capital for eBay Business Sellers (CEBS), is offered in partnership with YouLend, an integrated financing platform, and will offer loans ranging from £ 500 ($ 641.18) to £ 1 million (1, $ 3 million).
Loan amounts, which will be calculated through a combination of sales volumes and operational longevity, will be reimbursed by percentages of daily sales; the figure will be between 5% and 20%. The loan application process is marketed as quick and easy for sellers, typically taken only 5 to 10 minutes.
EBay’s program follows recent SME-focused lending initiatives from other retail platforms.
- Goldman Sachs, through its direct bank Marcus, entered into US SME lending deals last year with two retail giants: Amazon in June and Walmart in September. Sellers of small businesses that operate in the Amazon Marketplace can receive lines of credit worth up to $ 1 million, while the Walmart deal involves lines ranging from $ 10,000 to $ 75,000. .
- Shopify offers assistance to SMEs through its Shopify Capital unit, which operates in the United States, Canada and the United Kingdom. The service is available Shopify Payments users and merchants who use third-party payment providers. The company bring supply in the UK in March 2020 at the start of the pandemic. Shopify Capital includes merchant cash advances, available in its three markets, and loans available in parts of the United States.
Small business loans give eBay – and partner financial institutions – the opportunity to improve their adhesion with sellers. By conveniently offering loans to its sellers, eBay gives them a reason to stick with it. Likewise, banking players such as Marcus and YouLend who partner with e-commerce platforms have the opportunity to grow into out-of-the-box customer bases and position themselves for future cross-selling opportunities. . Both players also have access to participants’ sales data, which gives them flexibility in working out loan amounts and repayment figures.
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