eBay is a vast and growing online marketplace – it’s the second-most popular online marketplace in the UK, with just under 298 million visits per month, making it a great place to set up and run your business. But once you're up and running as an eBay seller, you might find yourself wanting to stock up on inventory, cover marketing expenses, or manage cash flow during busy periods. That’s where an eBay loan comes in handy.
One of the most direct options for funding is eBay Seller Capital, provided through YouLend. This programme is designed specifically for eBay sellers, offering flexible, sales-based repayment options.
What type of loans does eBay offer?
eBay provides funding to its sellers through eBay Seller Capital, a programme powered by embedded finance provider YouLend. Here’s how it works:
- Flexible funding: Borrow between £500 and £1 million, depending on your sales history and eligibility.
- Repay as you earn: Repayments are based on a percentage of your eBay sales. This means you pay more when sales are high and less when they’re slow, which can help you manage cash flow.
- Fast approval: After applying, funds are typically available within 1–2 business days, making it a quick solution for immediate needs.
Eligibility and application process
To be eligible for eBay Seller Capital, your business must meet the following criteria:
- You must have been trading on eBay for at least three months.
- Your eBay sales should be £500 or more per month.
- Applications are quick and handled via your eBay account, with no hard credit check, which makes it accessible to businesses with less-than-perfect credit.
Key features of eBay loans
- Fast and flexible: eBay loans are designed to offer speed and flexibility, with funds available in as little as 1–2 business days.
- Sales-based repayments: Repayments adjust based on your daily sales, offering flexibility during slower periods.
- No traditional interest: Instead of traditional interest rates, eBay loans charge a fixed fee upfront, which means you know the total repayment cost from the start.
Potential drawbacks of eBay loans
While eBay Seller Capital offers several advantages, it’s not without potential challenges:
- Limited by eBay sales: Since repayments are based on your eBay sales, if you sell on other platforms, these won’t be factored into the loan amount or repayment terms.
- Fixed repayment percentages: Some sellers have reported issues with minimum weekly repayment amounts, which could cause problems if you have a slow sales week. Repayment is based on gross sales, meaning you’re paying before fees like eBay’s Final Value Fee and advertising costs are deducted.
- Short-term solution: eBay Seller Capital is designed for short-term funding needs, such as buying stock or marketing campaigns. If you need financing for long-term projects, such as large expansions or investing in infrastructure, you may need to look at other options.
Alternative funding options for eBay sellers
If eBay Seller Capital doesn’t meet your needs, or you’d prefer to explore other options, here are some alternatives worth considering:
- Merchant cash advances
Merchant cash advances (MCAs) offer similar flexibility to eBay Seller Capital, allowing you to borrow against future card sales. However, unlike eBay’s solution, MCAs consider sales across all platforms, not just eBay, providing higher borrowing limits if you sell elsewhere.
- Repayment: Like eBay loans, repayments are tied to daily sales, making it a flexible option for businesses with fluctuating income.
- Best for: Sellers with diverse revenue streams beyond eBay.
- Short-term business loans
A short-term loan from an alternative lender like iwoca can provide more structured repayment options. With loans up to £1 million, iwoca offers flexible terms and repayment schedules, allowing you to borrow based on your overall business performance, not just your eBay sales.
- Quick access: Decisions are often made within hours, and funds can be available the next business day.
- Repayment: Unlike eBay Seller Capital, iwoca’s loans offer fixed monthly repayments, which can provide more predictable cash flow.
- Best for: Sellers who need a larger loan or want predictable repayments.
- Invoice financing
If you deal with B2B customers and have invoices with long payment terms, invoice financing can provide immediate cash flow by unlocking the value of unpaid invoices. It allows you to borrow up to 95% of an invoice's value, giving you the flexibility to continue operations without waiting for clients to pay.
Which option is right for your eBay business?
eBay Seller Capital can be a helpful and flexible option, particularly if you need funds quickly and don’t want the hassle of applying for traditional loans. However, it's important to weigh the benefits against the potential downsides, especially if you rely on sales from other platforms or need long-term financing.
Choosing the right funding for your eBay business
eBay loans are a fast and integrated way for eligible eBay merchants to access finance, with simple applications and built-in repayments through the eBay platform. However, the specific repayments mechanism, combined with the existing fees on the eBay platform, can make it challenging for some businesses to manage their cash flow.
For UK-based ebay merchants looking for a flexible and digital-friendly financing option, iwoca’s Flexi-Loans have helped over 90,000 businesses succeed and grow.
- Fast access to capital: iwoca offers quick funding decisions—often within hours—with funds available as soon as the next business day.
- Flexible repayments: iwoca allows you to make repayments to suit your cash flow, with borrowing terms ranging from 1 day to 60 months and no early repayment penalties.
- Broader eligibility: Unlike eBay Seller Capital, iwoca looks at your overall business performance, including sales from other platforms and physical stores, providing the potential for higher loan limits and more favourable terms.
- Support for every stage of growth: Whether you're just getting started or scaling up, iwoca offers adaptable financing solutions to help with purchasing inventory, marketing, or upgrading technology.
- Clear and transparent costs: iwoca provides straightforward pricing with no hidden fees, making it easier to understand the total cost of borrowing.
To explore how iwoca can support your eBay business, check out our small business loans calculator to see how much you could borrow.
