A new partnership between eBay (NASDAQ: EBAY) and Square Capital will give US eBay sellers access to funds in as little as one business day.
eBay and Square Capital Offer Seller Financing
Eligible eBay sellers can get up to $100,000 from Square Capital, a financing arm of Square. In a press release, eBay says the goal of this partnership is to provide a seamless funding experience for sellers who are looking to grow.
The approval rate of small business loans at small and large banks, institutional and alternative lenders has been on the rise. The new partnership between eBay and Square Capital further extends the availability of financing to small businesses selling on eBay.
When Square Capital was launched in 2014, Square announced its aim was to give the merchants who use its products and services a financing option. In 2016, the company expanded the service to small businesses who were not using Square by forming a partnership with Upserve. Since then, Square Capital has approved $2.8 billion in funding to more than 180,000 businesses, the company says.
By removing the complexity, high fees and protracted application process of traditional loans, Square Capital is able to expedite the loans for its small business customers.
Jacqueline Reses, Head of Square Capital, says the company wants to make capital more accessible to empower those who have been underserved. In the release announcing the new partnership, Reses explains, “Square Capital understands the needs of small businesses and facilitates a simple, seamless funding experience. We’re proud to partner with eBay and enable more sellers across the US to invest in growing their business.”
As part of the new partnership between Square and eBay, sellers can apply for loans starting at $500 and going all the way up to $100,000.
Sellers can use the funds to increase their inventory, purchase new equipment, grow their omnichannel presence, manage cash flow, marketing, payroll and more.
The Benefit to eBay Sellers
With this partnership, eBay sellers who want to grow can quickly apply for a loan within the eBay ecosystem. And the speed of funding supports the many different immediate needs small businesses have, especially cash flow.
Square Capital will look at the data of a seller to assess their creditworthiness based on their performance on eBay as well as other financial indicators. Their eligibility and risk will then be determined to give an appropriately sized loan for each applicant.
Application invites to select eBay sellers will start going out in the third quarter of 2018, the company says.