eBay Seller Capital Loans

[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.

[agent006140]

Paypal also offers such loan.
If Ebay is taking $6k out of a $40K loan,thats the interest you are prepaying,thats 15%.
Not really that bad.
It all depends on what you are selling,if you have goods and services which are high margin and in high demand,and know where to source them,you could come out ahead.
You know where to find refurbished Iphones?
I would think a pawn shop would be interested?

[phaz0rz]

I do know where to find them but would never touch refurbished iPhones even with a ten foot pole.

I can't think of a single niche with profit margins consistently high enough to justify having that much taken off the top.

I'm assuming that's a no from you?

[agent006140]

I know many sellers use their credit cards to purchase goods for sale on EBay,how much interest do you think they are paying their cc issuer?

[phaz0rz]

Paying for inventory with credit cards is a surefire way to go bankrupt, lmao.

[rsot]

Originally Posted by agent006140

I know many sellers use their credit cards to purchase goods for sale on EBay,how much interest do you think they are paying their cc issuer?

Smart sellers pay off their cc bill by the end of the month, otherwise many cards are at 19.99-29.99% APY which, like phaz stated, is idiocy and leads to bankruptcy.

[agent006140]

It is not a matter of being smart or dumb,many cardholders have no way to get a bank loan or from private source.
For example,a young guy just got out of school and offered a job in a city,he needs to rent an apt,first and last month rent,apply for utilities,get some furniture,probably just a mattress,new work clothes,first 2 weeks -lunch and dinner money,he wont get paid until 2 weeks later.

[agent006140]

Originally Posted by phaz0rz

I do know where to find them but would never touch refurbished iPhones even with a ten foot pole.

I can't think of a single niche with profit margins consistently high enough to justify having that much taken off the top.

I'm assuming that's a no from you?

BBY and circuit city sell refurbished iphones,so do Ebay sellers

[phaz0rz]

So you're a supporter of this type of loan but have never used one?

[ft16]

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.

I actually got a email from one of their sales team earier:

Based on your strong track record on eBay, you’re currently eligible for short-term, flexible growth funding.

Unlike a traditional bank loan with fixed monthly payments, eBay Seller Capital is paid back as a percentage of your eBay sales - so if sales slow down, or you pause your store, less is taken. There’s also a single fixed fee, and funds can reach your bank account within 24-48 hours of applying.

Checking your offer won’t affect your credit score.

Worth a quick chat?

If you’d prefer, feel free to book in a time to chat with me here*to learn more:*hxxps://calendly.com/xxx/30min

I think they require you to give them read access to your bank account through open banking as well as charging extortionate interest rates.

No thanks!

[Nimble]

I personally wouldn't use a service like this linked to your eBay account, you never know when they will decide to pull the rug from under you. Also for stealth accounts this wouldn't pass their KYC checks.

[agent006140]

When WMT and Sears (remember SEARS ?) WERE closing some stores,all merchandise were marked down 37% -70
% off,you know its prices are already low,and with such discount,it is cheaper than going to your own distributor and you also save on shipping.
2 parties loaded up,one with his brother in law and mother in law who have a station wagon,another was an AMZN store,it sent 2 employees with an Uhaul,both parties list on AMZN and gross 100%'
If it happens today,that $4k loan is tempting

[agent006140]

Originally Posted by ft16

I actually got a email from one of their sales team earier:

Based on your strong track record on eBay, you’re currently eligible for short-term, flexible growth funding.

Unlike a traditional bank loan with fixed monthly payments, eBay Seller Capital is paid back as a percentage of your eBay sales - so if sales slow down, or you pause your store, less is taken. There’s also a single fixed fee, and funds can reach your bank account within 24-48 hours of applying.

Checking your offer won’t affect your credit score.

Worth a quick chat?

If you’d prefer, feel free to book in a time to chat with me here*to learn more:*hxxps://calendly.com/xxx/30min

I think they require you to give them read access to your bank account through open banking as well as charging extortionate interest rates.

No thanks!

Xmas is coming soon,so it makes sense for Ebay to offer loan
.If I were a toy seller,I would be interested,in the past,Ebay will send letters to its toy sellers coaching them what is hot and whats not,and advice them to order early.
In the past,parents are able to find hot toys for XMas on EBAY before it hits the retail stores !

[phaz0rz]

The comms they send out to UK sellers always sound more elegant and formal. They're offering the same loan in the US but with an American accent/spin:
Keep your business growing

You’re pre-approved for $xx,xxx*, now’s the time to use it. Join other sellers using eBay Seller Capital¹ to stay flexible, stock smarter, and keep inventory moving.


As you can see, all of the important buzzwords are there plus a dose of peer pressure.
I've seen a few people on here over the years who accepted one of these offers then lost their account way before they could pay it back. It's kind of dangerous for an inexperienced seller, because they'll offer you money based on your sales numbers without much regard for what's being sold or how risky it may be over time.

[agent006140]

Ebay cannot read your mind,you could use the new found wealth to buy something better,more marketable than what you are currently selling,Ebay is well capitalised,can afford to write off a few bad loans.

[phaz0rz]

There's no need to get defensive about it.. I was only asking if anyone has ever taken them up on a loan offer.


The money from a loan is not new found wealth - it's a new found liability.

[Nimble]

Ebay do not give out the loan, another company (YouLend) gives the loan, eBay have no liability if loan does not get repaid, they pocket the commission and walk away.

[phaz0rz]

They've always partnered with third parties (Liberis in the US). It's a smart strategy from their perspective because there will always be new young people who think they can turn a business loan into something profitable.

[agent006140]

if you know the hot toy parents want to buy for their kids this Xmas,you can place an order before anyone else does.

[phaz0rz]

I doubt it. Have you had success with flipping toys? Fidget spinners were the last opportunity to make a decent profit on toys but you would've had to get in on the ground floor before they got popular.

[rsot]

Originally Posted by agent006140

if you know the hot toy parents want to buy for their kids this Xmas,you can place an order before anyone else does.

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.

[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.