eBay UK has launched a new finance programme to offer loans to small businesses that sell via its platform.
The finance programme, called Capital for eBay Business Sellers (CEBS), is aimed to provide the businesses with access to necessary capital amid the Covid-19 crisis.
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Online lender YouLend is the first financer to join CEBS. It will offer eBay business sellers with access to funding ranging from £500 to £1m.
The sellers are required to submit an application to receive financing offers. According to eBay, eligible applicants can receive the loan on the same day of accepting an order.
eBay Survey
The launch of the loan programme follows a new research by the e-commerce giant that found 31% of the UK’s 5.9 million small businesses may shut down under a month due to inadequate access to financing.
The research also stated that 40% of small businesses failed to receive a loan from a bank.
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By GlobalDataAdditionally, 44% of the respondents said that they did not receive any Covid support in the past 12 months.
eBay UK general manager Murray Lambell said: “Small businesses make up 99% of all UK businesses, yet they have been financially excluded from traditional lenders and let down by Covid support schemes.
“That’s led to a serious under-investment, leaving many at risk of going under while others are prevented from reaching their full potential.
“Capital for eBay Business Sellers is intended to help plug this gap, giving small businesses quick access to a range of 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.”
The launch of the small business loan programme is eBay’s most significant step into financial services.
According to the Financial Times, eBay’s $41bn market capitalisation is around 50% higher than that of the UK’s largest small business lender NatWest.
