A new partnership between eBay and LendingPoint is offering merchants on eBay access to loans. The pilot program will give eBay sellers in the U.S. access to funding to help grow and sustain their businesses.
The program, eBay Seller Capital is powered by the fintech company LendingPoint. The program offers access to installment loans for select sellers. It is currently available to select sellers and will roll out by being open to all eligible sellers.
eBay and LendingPoint Partner to Give Sellers Access to Capital
Eligible sellers will be able to receive up to $25,000, accessible within one business day and available with flexible terms of up to 48 months. There will be no fees for loan origination or early payback.
According to the two companies, the program offers fast, flexible and transparent funding opportunities. This will help small businesses access badly needed loans with rates ranging from 9.99% to 35.99%.
The two companies said the installment loans feature terms of 12 to 48 months. It will also allow sellers to choose the best option for their specific budget needs, and lower repayment plans as part of the longer terms.
“The program with LendingPoint will enable critical funding opportunities for eBay sellers, especially during this time of economic uncertainty,” said Alyssa Cutright, Vice President of Global Payments at eBay.
How Businesses Become Eligible
In order to access loans from the eBay Seller Capital businesses need three key documents. They will need to provide proof of employment and income; most recent bank statements and a voided check; and an ID. Applicants will be weighed based on their job history, income, financial history and credit behavior.
The decision to provide loans will not be based on the business’s credit score. Once approved, loans between $2,000-25,000 can be deposited the next business day. The eBay Seller Capital will be a shot in the arm for businesses working towards normalcy in the post-COVID-19 era.
eBay sellers who work with LendingPoint in the program can obtain quick decisions and access to installment loans. The eBay Seller Capital which is rolling as a pilot program will be available to all eligible sellers in the U.S. later this year.
“LendingPoint’s purpose is to accelerate and democratize commerce. We are thrilled to be able to use the data and technology we have built into our platform to help eBay sellers achieve their dreams”, said Tom Burnside, CEO and Co-Founder of LendingPoint.
There are roughly 170 million active users and 25 million sellers on eBay. Last year alone it saw some 1.3 billion listings on its platform. Besides being a great platform to sell products eBay offers shop analytics and seller success resources to enable sellers to grow their business.
Partners in Recovery
eBay’s Seller Capital loan is a continuum of a series of support by corporations for small businesses. Similar offerings in recent months have been rolled out by the private sector. This includes Facebook Small Business Grant Program offering $100 million in grant funds and ad credits to small businesses affected by the pandemic. Google is offering $340 million worth of ad credits to small and medium-sized businesses. Goldman Sachs also has made a commitment of $550 million in total relief funds. Most of the funds are for emergency small business loans. The rest is available in grant funds to organizations, healthcare providers, and communities.
These support along with the government’s Paycheck Protection Program (PPP) continue to play vital roles in the road to recovery. The PPP program has helped provide badly needed loans to nearly 5 million small and mid-sized businesses. It has so far distributed over $521 billion to help small businesses stay open and pay salaries.
As restrictions ease up and customers willing to patron them businesses across the nation are showing modest gains. In July alone the U.S. economy added 1.8 million new jobs.
This article, “eBay and LendingPoint Partner to Offer Capital for Sellers” was first published on Small Business Trends
Source: Small Business Trends