eBay offers a small business loan service to its 300,000 SMB sellers
eBay is committed to lending directly to its small business sellers and offering SME loans between £ 500 million and £ 1 million.
EBay parks its tanks on the lawn of the former subsidiary PayPal, which already offers small business owners quick loans.
PayPal also aggressively expanded its lending business with $ 2.7 billion in outstanding credit as of the end of the first quarter.
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The move also puts eBay in competition with the less well capitalized UK banks targeting small business customers. For comparison, eBay’s $ 41 billion market cap is roughly 50 percent higher than NatWest, the UK’s largest small business lender.
A same day loan service is required to help the 300,000 small business users recover quickly from the pandemic, according to eBay.
Nearly a third (31 percent) of the UK’s 5.9 million small businesses, according to research, go broke in less than a month because of inadequate access to finance.
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Two in five (40 percent) small business owners have been denied credit by banks, while one in three (31 percent) has been turned down for a government loan, eBay said.
44 percent of SMEs have not used Covid 19 support in the past 12 months.
Online lender YouLend is the first financial partner to join eBay’s CEBS (Capital for eBay Business Sellers) initiative.
According to eBay, hundreds of small business sellers have already borrowed money through CEBS.
Murray Lambell, general manager of eBay UK, said: “Small businesses make up 99% of all UK businesses but have been financially excluded from traditional lenders and disappointed by COVID support programs. This leads to serious underinvestment that drowns many while preventing others from reaching their full potential. “
Small Businesses That Are Having Difficulty Obtaining Loans From The Recovery Loan Scheme