eBay Seller Capital Loans

[agent006140]

Originally Posted by rsot

It's not so simple - I used to sell tons in the toy business and it wasn't so easy to time that approach hah.

I dont sell toys,but I know Ebay will clue its toy sellers approaching Xmas,parents will actually goto Ebay to find them as they are not yet available in retail stores.

[rsot]

Originally Posted by ft16

Many years ago they, had a partner ship in the UK with another loan company, I can't remember what it was called, would have been in the early 2010's.

I had a couple of loans with them and when they exited the UK market they wrote off all the outstanding loans!

Still wish I'd borrowed more.

Wow - that was quite the opportunity...free cash with no pay back...

[agent006140]

plentry of people are defaulting on their IOU these days(bank loan,mortgage loan,auto loan,BNPL,cc loan,personal loan,dept store loan,you name it).
Macy dept store at one time was charging 34 % for its credit card,dont know how anyone would use it??

[phaz0rz]

Have you been defaulting on loans, agent?

[solefoodbk]

I recently did a Liberis for $3,000 and the fee is about $78. It isn't that bad, and I only did it mainly to test everything out. It gets preapproved, at least for mine so there was no formal application or credit check. If there was I wouldn't have done it.

I have up to $21,000 I could have used. The other loans are real applications and I had offers up to half a million. Not going to do it, no need.

[agent006140]

HALF A Million to sell on internet strictly??????

[solefoodbk]

Originally Posted by agent006140

HALF A Million to sell on internet strictly??????

Yes $500,000 with 5.99% fee plus interest. Timeframes are 12-84 month terms. The other one that I used is more like Shopify capital which takes a percentage from your sales until the entire amount is paid off.

You can provide any reason for the loan. I imagine if I really applied for the full amount I would need to justify the reasons though.

[agent006140]

I would think more than reason to justify,they will do a credit check on you,I doubt they will lend you that much despite positive credit check.

[rsot]

Originally Posted by agent006140

I would think more than reason to justify,they will do a credit check on you,I doubt they will lend you that much despite positive credit check.

If it's a business loan then there are other parameters such as proof of business model, profits, etc - rather than just personal loan.

[SaiJin]

Originally Posted by phaz0rz

Have any of you guys ever accepted an offer for a seller capital loan? I was looking over how they work this morning and honestly the loan terms make them look kinda predatory. For a $40k loan they charge a $6k fixed fee then I'm pretty sure they charge interest on top of that.


I guess it could be a useful resource for some sellers. I've never been able to see how anyone would be able to keep their business going when a given % of your daily revenue automatically goes towards paying back the loan. It's like signing away your profit margins for a period of 9-18 months and expecting to come out of the arrangement profitable.


I doubt I would ever take one of their loan offers but I look at the amount they're willing to lend to each of my accounts as an account health indicator. Surely they wouldn't be willing to loan tens of thousands of dollars to a seller they don't like.

Yea first of all considering it's eBay, I would never trust them with something like this and 2nd looking at the terms.... I don't see how this is going to be beneficial for practically any one.

It seems very scammy and they're just in it to make more money out of sellers.

Plus there are better ways to get inventory, even if you have to take a loan to start a business, there's other lenders who are better imho

[phaz0rz]

I think people get blinded by the numbers. They'll watch their sales climb higher and higher for months on end, so they start to assume that the money tap will never be turned off.


I can't really blame eBay for offering the loans since selling money is one of the biggest industries in the US.

[solefoodbk]

Just got my funds. Not going to lie, pretty cool. And in terms of fees, if you use it to buy COGS like I am, I’m just selling a few things ahead of time which covers the fee and then sum. Normally I’d wait to have the product but I ship by sea now so it takes over a month.

I have already offset my cost by like $400+ so the fee is irrelevant.

To be clear though, I’m using this only for more testing and it’s a low amount. My fixed spending on COGS is $15k+ a month.

[solefoodbk]

Originally Posted by SaiJin

Yea first of all considering it's eBay, I would never trust them with something like this and 2nd looking at the terms.... I don't see how this is going to be beneficial for practically any one.

It seems very scammy and they're just in it to make more money out of sellers.

Plus there are better ways to get inventory, even if you have to take a loan to start a business, there's other lenders who are better imho

The loan I used is no different functionality wise than Shopify capital which I tried out early this year for $1,500. I would agree more in the real loan type offer which can be predatory.

For me, I having been trying to get my business in a position where I never need a loan and I’m fully cash flow positive which took a while to understand. Seems obvious to me now, like I know I never need to spend more than $20k a month so if I have $40k saved, I just fill up the bucket back each month I never really have to worry because my business is then fully operational.

I didn’t understand that when I started because I had no clue or understanding how business works.

I would argue doing these things does not hurt but if anything helps make your account stronger. There is also no credit check on Shopify capital. They’re taking the sales you get monthly applying math to it that’s why my fee is low. If I used $21k loan, I’d be paying a far higher percentage fee. It increases the more I use because mathematically it would take longer for them to be paid back.

They know based on my historical data I’ll pay this loan back likely by end of the month given my sales volume so there is little risk to them in the grand scheme of things. It’s a pretty smart concept IMO.

[agent006140]

Originally Posted by phaz0rz

Have you been defaulting on loans, agent?

NO,my mother was an early Ebay seller and made enough so we just recycle it-back then the profit margin was OBSCENE !

[phaz0rz]

Hope it works out for you, sole. Your post reminds me of yankee - he always used to be a big advocate for taking on debt to grow. The way I've always looked at it, if you can't afford to expand with your own money then you aren't in a position to expand.


I agree that it means you have a healthy account if they're willing to offer the loan in the first place though.

[solefoodbk]

Originally Posted by phaz0rz

Hope it works out for you, sole. Your post reminds me of yankee - he always used to be a big advocate for taking on debt to grow. The way I've always looked at it, if you can't afford to expand with your own money then you aren't in a position to expand.


I agree that it means you have a healthy account if they're willing to offer the loan in the first place though.

I am going to repay it back by the 15th. Yankee was a cool guy, I used to look up to him when I was learning everything here. This forum was better when those guys contributed, Greenbean etc.

[phaz0rz]

Yeah, for sure. MP did a number on this place and now it's mostly a UK forum.

[SaiJin]

Originally Posted by solefoodbk

Just got my funds. Not going to lie, pretty cool. And in terms of fees, if you use it to buy COGS like I am, I’m just selling a few things ahead of time which covers the fee and then sum. Normally I’d wait to have the product but I ship by sea now so it takes over a month.

I have already offset my cost by like $400+ so the fee is irrelevant.

To be clear though, I’m using this only for more testing and it’s a low amount. My fixed spending on COGS is $15k+ a month.

COGS?

For some reason I'm not surprised that you managed to make it work to your favor.

[agent006140]

COGS cost of goods sold.

[solefoodbk]

Originally Posted by SaiJin

COGS?

For some reason I'm not surprised that you managed to make it work to your favor.

Cost of goods. I am technically not where I want to be yet, because I keep reinvesting in all these things that make my end of month reserve still closer to break even. I used this $3k to ensure I could pay a supplier, then sold some stuff I have in transit from last month that arrives next week. While it is high risk to do this because INRC it's not a long term practice I will continue doing.


Works far better if you have your own website and let customers know of delays. If so, you could basically fund your entire monthly expenses with already sold sales that cover the fees. However, I would rather just want to have enough cash to not need to operate this way because it's far more risky and creates more stress.

Overall taking on debt I don't think is a good long term strategy. Not for my risk tolerance.