Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Nov 15 2012 15:11:32

Would You Turn to eBay's PayPal Unit for a Loan?

By: Ina Steiner

Sponsored Link

Soon, you may be able to turn to eBay's PayPal unit for a business loan. But would you?

Kabbage uses data collected from online marketplaces, payment services and even social networking sites to help it assess sellers' creditworthiness and built a system to extend "working capital advances" to merchants, automating the application process and making it fast and easy.

Kabbage devised the system of extending credit to eBay and online sellers right under PayPal's nose.

I broke the news in September that Amazon had begun offering its marketplace sellers loans as well, and now word comes that PayPal is planning to do the same.

Would you (or do you) take financing from an online marketplace or online payment service? And what do you think of PayPal's plan to offer credit to sellers? Please take a quick survey and leave your comments below.




Comments (37) | Leave Comment | Permalink

Readers Comments

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: Anonymous Annie

Thu Nov 15 16:00:22 2012

Not a chance! I can only imagine that this service from PP would be on-par with the ''payday lenders''.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: Al G

Thu Nov 15 18:40:15 2012

Yeah - PayPal did contact me for their survey.

Due to confidentiality agreements I had to agree to, I can't say anything about what they asked me.


Har, har, har, har ....cough, cough, cough!

My opinion is NFW! Bring back Glass-Steigel and keep these amateurs out of finance.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: Ric

Thu Nov 15 19:35:08 2012

The fact that PayPal goes out of it's way to avoid being classified  and regulated as a bank despite performing just about every function a bank does means that this company can not be trusted.

That they legally circumvent banking regulations means to me that the company is not worthy of any additional part of my business.

I am looking for ways to become less intertwined with PayPal and am not looking to give them more ways to reach deeper in my pocket.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: Truk This user has validated their user name.

Thu Nov 15 19:48:50 2012

With the trust eBay has developed with sellers lately why on earth would I trust my financing to Paypal neither eBay or Paypal lives by the terms they have set forth now unless it suits them

I'm already start'in to feel like they have a gun to my head,a loan from them would just be a larger caliber!

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: happyharry This user has validated their user name.

Thu Nov 15 21:12:54 2012

NEVER....

And as contributors to the Bilderberg steering committee I buy NOTHING with Paypal anyway  

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: iheartjacksparrow

Thu Nov 15 22:59:54 2012

No way! Since eBay constantly changes their TOS to fit their needs at the moment, why would anyone expect PayPal to be any different? Like Annie stated, they would probably be like those loan companies that advertise on TV all the time and have an 89% interest rate.  

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: RAOTFLMAO This user has validated their user name.

Thu Nov 15 23:25:16 2012

What a laugh....NO!!

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: spirit-of-shiloh This user has validated their user name.

Thu Nov 15 23:27:19 2012

Heck NO!!!!!!!!!!!!!!!

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: Paul W This user has validated their user name.

Thu Nov 15 23:55:12 2012

My AMEX CC gives me much lower rates than Kabbage offers, and that would most likely be true for PP as well.  So, no, I would not use it.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: mimi51 This user has validated their user name.

Fri Nov 16 00:15:10 2012

NO WAY!

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: tb This user has validated their user name.

Fri Nov 16 00:43:18 2012

I'd rather pay a visit to Vinnie the local loan shark than use PayPal for a loan. The last thing I'd want to do is give any more business to eBay/Pal.  

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: Massachusets Howler This user has validated their user name.

Fri Nov 16 01:53:21 2012

As if!
I would rather lose my home and live under a tarp in the woods.
Now ebay wants to PUT US IN A HOLE to sell on their site.
If we has EXPOSURE we would not need a loan.
Paypal is NOT a bank- they have a MONEY TRANSMITTERS LICENSE only and they break the rules of that MONEY TRANSMITTERS LICENCE every time they hold YOUR money (look at Inas excellent list and see if and when a money transmitter in your state can hold YOUR money).
Get a license paypal!
Knowing ebay the funding would come directly from Bain Capital!
Mass Howler

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: eBankrupted

Fri Nov 16 02:01:35 2012

I have an open 80k line of credit and will not touch it BECAUSE ebay sales have been schizophrenic since July. Paypal has offered many teasers for additional credit, but I do not trust ebay because of how effectively they killed 2012 summer sales and left us to rot.

I have product closeouts and easy margin items listed, while staying in a cash position so I can get the hell off ebay for good.

Once a dog bites, it can never be trusted again.

The Fool who borrows from the Devil for some temporary financial safety will pay twice and end up broke.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: Ed Gadfly
Web Site

Fri Nov 16 03:52:14 2012

A number of the eBay Ink Social Media Sellers (see the ebaystinc.blog) are endorsing the various Loan programs.

Readers need to find out if they are affiliated with or receiving money from the Lenders. Some of these people give speeches and receive compensation for their services.

This is a conflict of interest that ought to be presented to the readers.

The money to be made on eBa'al is in providing new flesh for the e-paracites to nibble away on. They found the secret is NOT to sell products, but to entice the unsuspecting newbies to invest their hopes and dreams in the eBa'al fraud.      

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: trickstunt This user has validated their user name.

Fri Nov 16 04:04:31 2012

You're all looking at it wrong. Things like banking regulations and lending laws get in the way of business plans and profits. Working around them is ebay's way of simplifying matters for your benefit. Yeah, you.

Take the loans. Do it! Use them to open your own consignment shops. Hire all yous friends. Have them all get loans too, then hire each other.  Buy some inventory from an ebay endorsed Texas liquidator, and ebay wholesaledeals.  Bring the fun back with some good old fashioned bidding wars. Yous all win, ebay wins. Everybody wins. heh heh. It's an offer you can't refuse. Trust me

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: Bloggo This user has validated their user name.

Fri Nov 16 05:05:43 2012

I wonder if Paypal can give me a better deal than the Nigerian Minister of Finance.  

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: ejholden This user has validated their user name.

Fri Nov 16 05:55:58 2012

Bloggo,
The Nigerian Minister of Finance will probably be appointed VP of PayPal Finance ....
After all, Ebay/PayPal would recruit based on World's Best Practice ....

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

This user has validated their user name. by: Rexford

Fri Nov 16 08:08:56 2012

The poster who used the term payday lender.....BINGO!

I wouldn't trust them as far as I could throw them, but I would like to see their signs popping up in bad neighborhoods beside bail bondsman businesses.

Maybe Johnny D could transition into his dream job, Johnny Kneecaps, since he seems obtain sheer delight out of sticking it to the sellers.

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: FREDDY This user has validated their user name.

Fri Nov 16 08:44:26 2012

Big joke. As usual ebay-paypal- last in line again.  They just ''try'' to copy what ever anyone else is doing and hope it sticks.
I can just see it....get a loan from paypal and they don't show your listings - default  - penalties etc higher rates etc..all preplanned.
IF ONLY THEY WOULD GET RID OF THE TOP BR ASS AT THAT COMPANY AND GO BACK TO ORIGINAL-CONCEPT AND SEE WHAT WOULD HAPPEN......I GUESS WHEN YOU MAKE SO MUCH MONEY -COMMON SENSE GOES AWAY.  

Perminate Link for Would You Turn to eBay's PayPal Unit for a Loan?   Would You Turn to eBay's PayPal Unit for a Loan?

by: Moonwishes This user has validated their user name.
Web Site

Fri Nov 16 10:33:58 2012

Hardly. When we need a 'loan' we use a credit card. Our business has been bootstrapped by us with occasional credit card use and has never had a need for a loan especially from a loanshark!

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