eBay partnered with LendingPoint to provide loans to sellers, and presumably it will benefit financially from the deal.
PayPal had been one of the go-to companies for eBay sellers looking for working capital loans, but after the companies split in 2015 (their 5-year operating agreement ended last month), it seems the two could not come to a mutual arrangement.
Interestingly eBay had entered into a deal in in 2018 to market Square Capital directly to its sellers.
We noted last month that eBay sellers with PayPal Working Capital loans must repay their loans manually once enrolled in eBay’s mandated Managed Payments program.
In today’s announcement, eBay wrote: “eBay is partnering with LendingPoint to launch a new program that will give eBay sellers in the U.S. access to funding to help grow and sustain their businesses. The program, eBay Seller Capital powered by LendingPoint, is compatible with payments managed by eBay and will unlock opportunities for individuals and businesses to obtain financing, providing eligible sellers with a fast, flexible and transparent funding experience.”
The new program, called “eBay Seller Capital powered by LendingPoint,” is a pilot program and will not be available to all US sellers until later this year.
eBay said, “During the initial launch, eligible sellers may receive up to $25,000 in funding in as little as one business day,” and it explained:
“eBay sellers who work with LendingPoint in the pilot program can obtain quick decisions and access to installment loans. This program will be offered with flexible terms of up to 48 months to allow sellers to choose the best option for their specific budget needs, and lower repayment plans as part of the longer terms. LendingPoint will not charge origination fees or early payback fees.”
Interestingly, the two companies plan to expand their offering “to provide eBay sellers with more tools to help run their businesses.”
You can find the full announcement on the eBay corporate blog.