EBay offering loans to merchants through partnership with LendingPoint
Merchants on eBay can now access thousands of dollars in loans through a pilot program with the online lender LendingPoint.
The program, eBay Seller Capital, is meant to help participants improve and sustain their businesses. They will be able to borrow between $500 and $25,000, with loan terms of 12 to 48 months. There will be no origination or early-payback fees, the two companies said. The online lender weighs job history, income, financial history and credit behavior in its underwriting process, rather than basing decisions on the borrower’s credit score.
In the fall, the companies plan to expand the program to include financing options of up to $500,000. EBay and LendingPoint also say they plan to offer eBay sellers other products to help run their businesses.
“We're excited to make flexible financing options available that are integrated with our new payments experience,” Alyssa Cutright, vice president of global payments at eBay, said in a press release. “The program with LendingPoint will enable critical funding opportunities for eBay sellers, especially during this time of economic uncertainty.”
A working capital option, where sellers can allocate a percentage of their eBay sales to repay the loan, is in the works.
“LendingPoint's purpose is to accelerate and democratize commerce," Tom Burnside, CEO and co-founder of LendingPoint, said in the release. “We are thrilled to be able to use the data and technology we have built into our platform to help eBay sellers achieve their dreams."