EBay Launches Another Program to Give Sellers Access to Advance Funds
E-commerce giant eBay is giving sellers advance access to funds to improve their businesses.
The company announced Thursday it would continue to partner with finance company Liberis to launch the Flexible Cash Advance program, which would provide sellers on the platform with financing worth between $5,000 and $2 million.
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The two companies announced earlier this year the launch of the Business Cash Advance program, which allowed them to receive between $500 and $1 million in funding. To qualify, sellers have to prove they have made $5,000 in revenue on eBay in the prior 12 months, have made at least one transaction each month for the last three months and have an eBay sales history in the last three months.
According to the eBay site, repayment for the Business Cash Advance program is “based on a pre-agreed percentage of gross sales,” so it’s a pay-as-you-sell program. Sellers also pay a fixed fee for the initial financing.
The companies did not immediately elucidate the terms for the Flexible Cash Advance program, but did note that applying for the program could take just three minutes and that sellers may be eligible to receive same-day approval for the funds.
The new program will provide stronger access to flexible funding that moves with the seller as their business needs change—for better, or for worse. EBay said the payment structure will scale according to sales data for each individual sellers. As sellers pay off their balance, they also become eligible for additional funds.
Rob Straathof, CEO of Liberis, said access to that level of funding can help small businesses address surprise expenses with less of a hassle, purchase higher volumes of inventory and more.
“Our new product, Flexible Cash Advance, is the next step in building technology that solves every business need in one platform. Flexible Cash Advance provides small businesses with a 12-month flexible cash reserve, helping them manage unpredictable sales periods and stay operational and even thrive where others might struggle to stay afloat,” Straathof said in a statement.
That kind of flexibility may be a boon to small business owners selling on eBay. Data from the U.S. Chamber of Commerce‘s Small Business Index for Q3 shows that nearly half of small businesses have negative sentiment around the state of the U.S. economy, which could directly impact their sales and livelihoods. Further, retail-focused small businesses reported that they’ve observed increased competition at higher levels than their counterparts in other industries.
Avritti Khandurie Mittal, vice president and general manager of global payments and financial services for eBay, said the newer program will help create more options for eBay’s diverse array of sellers. He noted that through Business Cash Advance, Liberis and eBay have already set thousands of sellers up with millions of dollars’ worth of funds and he expects Flexible Cash Advance to make an even more profound difference in sellers’ strategies and success.
“We’re thrilled to build on this momentum with our latest financial solution, Flexible Cash Advance, as we continue to offer fast, convenient and transparent seller capital solutions that fuel the growth of small businesses and create economic opportunity for all,” Mittal said in a statement.