eBay rivals banks with new small business loans

eBay UK has announced a new finance programme for small businesses.

Capital for eBay Business Sellers (CEBS) will involve a number of financing products for the 300,000 small and medium sized businesses that sell via the UK platform.

The move marks the online marketplace’s biggest push into financial services to date, since it began rolling out the management of payments made on the platform last year.

“Small businesses make up 99 per cent of all UK businesses, yet they have been financially excluded from traditional lenders and let down by COVID support schemes,” said Murray Lambell, general manager, eBay UK. “That’s led to a serious under-investment, leaving many at risk of going under while others are prevented from reaching their full potential.”

Lambell said that the new programme aims to “plug this gap” by giving small businesses quick access to financing options.

“With 300,000 UK small businesses trading on eBay, this proposition will help them reinvest, protect jobs, and succeed, even as the government’s support schemes dry up,” he added.

The launch follows new research from eBay UK which found 31 per cent of the UK’s 5.9 million small businesses face going bust in under a month due to inadequate access to financing.

The study also revealed that 40 per cent of small businesses have been denied a loan from a bank, while one in three have been turned down for a loan by the government.

When considering Covid loans specifically, 44 per cent said they have not accessed any Covid support in the past 12 months.

YouLend is the first of three financing platforms announced as part of CEBS, giving eBay business sellers access to funding ranging from £500 to £1 million, which is then repaid directly from their sales.

eBay already has access to seller trading history and performance, so eligible sellers only need to complete an application form. eBay said that companies receive offers in minutes, with more than 90 per cent of sellers “receiving funds the very same day they accept an offer.”

    Share Story:

Recent Stories

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.