Ebay UK launches finance programme to help small businesses in crisis

15 May '21

3 min read

Pic: Shutterstock

Ebay UK has announced a landmark new finance programme, Capital for Ebay Business Sellers (CEBS), to help small businesses rebuild by connecting them with much-needed access to finance, as entrepreneurs and start-ups across the country face a cash-flow crunch caused by the pandemic. Ebay is a leading American multi-national e-commerce platform.

CEBS offers a connection to financing to support the army of 300,000 small and medium sized businesses that sell via the UK platform to 29 million active monthly buyers. The launch of CEBS follows new research, released recently from Ebay UK, which finds a third (31 per cent) of the UK’s 5.9 million small businesses face going bust in under a month due to inadequate access to financing. The research also found that two in five (40 per cent) small businesses have been denied a loan from a bank, while one in three (31 per cent) have been turned down for a loan by the government. When considering COVID loans specifically, 44 per cent said they have not accessed any COVID support in the past 12 months, according to a media statement by Ebay.

YouLend is the first financing platform announced today as part of CEBS, giving Ebay business sellers access to funding ranging from £500 to £1 million. Eligible sellers only need to complete a simple application form, receiving offers in minutes, with more than 90 per cent of sellers receiving funds the very same day they accept an offer, Ebay said.

The solution helps small businesses overcome the many challenges that have left them financially excluded from high street bank loans and COVID support schemes. Lengthy application forms, years of trading history, high interest rates and high risk payment structures are just some of the pain points that CEBS aims to remove for business sellers in need of finance. It also makes it possible for thousands of entrepreneurs and start-ups that have sprung up on Ebay UK throughout the pandemic to access funding to grow and succeed. Hundreds of Ebay businesses have already benefited from CEBS, with additional financing partnerships under development, according to Ebay.

The CEBS launch is the next step in Ebay UK’s ongoing commitment to supporting entrepreneurs and small businesses, delivering economic opportunity and making it easier to set-up, grow and scale. It follows a number of initiatives launched in the past year to help businesses and individuals set up ventures or open new revenue streams online, reducing or removing Ebay’s fees through programmes like Pay As You Grow and Free Online Shop Window.

“Small businesses make up 99 per cent 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,” Murray Lambell, general manager, Ebay UK said in a statement.

“Our focus is on giving leading e-commerce platforms, tech companies and payment service providers the ability to offer their customers rapid funding through our technology platform. We’re delighted to partner with Ebay UK to support their business sellers to thrive and grow,” Jakob Pethick, CCO of YouLend said.

Fibre2Fashion News Desk (GK)

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