8 Small Business Loan Options For eBay Sellers

If you’re looking for financing for your eBay store, why not look to eBay itself?

This summer, eBay announced a joint project with LendingPoint to create a capital source for eBay sellers called — appropriately enough — eBay Seller Capital. Though the program is currently available on an invite-only basis, eBay states that the program will open to all eligible US-based sellers “later this year.”

Currently, borrowers can receive between $500 and $25,000 in funding within one business day. However, eBay promises that the loan cap will be bumped up to $500,000 later this fall.

eBay Seller Capital loans come with flexible term lengths of up to 48 months. There’s no origination or early payback fees, and your credit score won’t be impacted by applying, as LendingPoint performs a soft credit inquiry during the application process (as opposed to a hard credit pull).

Pros

No hard credit pull performed during the application process (just a soft credit inquiry)
No extra fees
Funds get disbursed quickly

Cons

Not open to new applicants until later in 2020
No long-term loans available

2. LoanBuilder

LoanBuilder

If you want a more traditional loan option to fuel your eBay business, look no further than LoanBuilder to get the funds you need. What’s unique about LoanBuilder is that you can customize your borrowing amount, terms, and payments to best fit your business’s needs.

Through LoanBuilder, you can apply for $5,000 to $500,000. Repayment terms are between 13 to 52 weeks and are based on the amount of your loan. Fees range between 2.9% to 18.72% of the borrowing amount. While there are no prepayment penalties, you’re still required to pay the full fee if you pay off your loan early.

To qualify for a LoanBuilder loan, you must meet the following requirements:

Been in business for at least nine months
A personal credit score of at least 620
Annual revenue of at least $42,000
Have a business based in the US
No active bankruptcies

To apply for a loan, simply start by completing a quick questionnaire. After filling out this questionnaire, your eligibility will be assessed, and you’ll receive estimated offers. Filling out the questionnaire and receiving your offers will not affect your credit score.

No origination fees and single-fee fixed pricing, paired with the ability to “build” your loan, make this an uncomplicated, competitively-priced loan option for any eBay seller.

Pros

Lower borrower qualifications than what banks have
No extra fees
The application process is fast and easy
Funds get disbursed quickly

Cons

No discounts for repaying early
No long-term financing options available
A blanket lien is required

3. OnDeck

OnDeck

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If your eBay business needs some leniency from a lender, take heart — OnDeck is one of the most lenient lenders you’ll find. Offering short-term loans and lines of credit, OnDeck has relatively low borrower requirements. Borrowers must have:

Been in business for at least 12 months
At least $100,000 in annual revenue
A personal credit score of 600 or above

OnDeck offers short-term loans up to $250K and lines of credit with credit facilities up to $100K.

The equivalent APR for OnDeck’s short-term loans can be as high as 99.4%, so OnDeck’s loans are on the pricey side. But if your eBay business needs a capital injection, OnDeck is worthy of consideration (especially if you aren’t eligible for less expensive financing).

Pros

Multiple types of financing available
Lower costs for repeat customers
The application process is fast and easy
Funds get disbursed quickly

Cons

Financing isn’t available in some states
Rates can be expensive

Get Started with OnDeck

4. FundBox

Fundbox

A financing challenge for many business owners is a low personal credit score or non-existent business credit score. If you’re running a new business as well, it might seem impossible to find the financing you need to build your business. Whether you’re operating a new business, have an iffy credit history, or all of the above, Fundbox offers a solution.

Through Fundbox, you can receive a revolving line of credit up to $100K to fund your eBay business. To qualify, you must be a US-based business and meet the following requirements:

At least $50,000 in annual revenue
Own a business checking account
Have activity in supported accounting software for at least two months OR business bank statements from the last three months
Have a personal credit score of at least 500

There is no minimum time in business requirement. Repayment terms are 12 or 24 weeks, with flat fees starting at 4.66%. You only pay fees on the drawn amount, and you can save by paying off your line of credit early.

One of the biggest advantages of using Fundbox is the speed at which you can receive your funds. Fundbox can approve your line of credit in just minutes, and you can immediately make draws from your line. These funds are then available in your business checking account in one to three business days.

Pros

The application process is fast and easy
Low credit score requirements
Multiple avenues of customer support

Cons

Rates can be expensive
Repayments are required frequently

Get Started with Fundbox

5. BlueVine

BlueVine

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Get Started with BlueVine

If you need an extra financial cushion for your eBay business, BlueVine could offer the solution with its lines of credit and term loans up to $250,000.

With just some basic information about yourself and your business, you can be approved within 20 minutes and immediately draw from your BlueVine line of credit. Like other lines of credit on this list, this is a smart choice if you need access to cash on demand.

If you’d rather receive a lump sum instead of a line of credit, you can apply for a term loan. Qualified borrowers can have funds sent to their account in just a few hours.

To qualify for a BlueVine line of credit or term loan, you must meet the following requirements:

At least three years in business
At least $100,000 in annual revenue
A personal credit score of 650 or above

After filling out a quick application, you’ll connect your business bank account or upload bank statements for approval. Rates start at just 4.8% for both financial products. With a line of credit, you only pay on what you’ve borrowed. There are no additional fees for opening a BlueVine line of credit or using your account. Repayment terms are generally six months; however, 12-month terms are also available to qualified borrowers.

Pros

Financing is available for startups and entrepreneurs
The application is fast and easy
Funds get disbursed quickly

Cons

Three years on business required
Rates can be expensive
Repayments are required quickly

6. Lendio

Lendio

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If you’re unsure of what type of loan would be best for your business, it’s not uncommon to jump on a search engine and start shopping for options. But what if you could see all of your loan options in one place — saving time and the effort of filling out application after application? The good news is that with Lendio, you can do just that.

Lendio isn’t a direct lender. Instead, it’s a loan aggregator that has over 300 lending partners. This means that with just one application, you’ll receive multiple offers that you can compare to ensure you’re getting the lowest rates and best terms.

Through Lendio, you can apply for term loans, lines of credit, business credit cards, merchant cash advances, and other financial products to fund your eBay business. To apply with Lendio, you need to meet the following basic requirements:

Been in business for at least six months
Annual revenue of $10,000 or more
A personal credit score of 550 or above

Additional requirements, information, and documentation required to receive your funding will vary based on the type of loan you’re seeking and the lender you select. Repayment rates and terms also vary by lender, loan type, creditworthiness, and other factors.

Pros

Multiple types of financing available
High borrowing amounts
Long-term financing options available
Applicants can be quickly prequalified

Cons

Rates can be expensive
Funds can take a while to disburse

Get Started with Lendio

7. Behalf

Behalf

If you’re an eBay reseller, you can use a Behalf line of credit to pay your vendors. Through Behalf, your vendors will be paid immediately for their goods or services, while you can receive terms of up to six months to repay your line of credit. Lines of credit are available in amounts from $300 to $50,000.

To qualify for a Behalf line of credit, borrowers must be US-based and must also meet the following minimum requirements:

At least two years of personal credit history
At least 12 months in business
At least three open personal accounts that are paid on time
At least one open business account
No more than one personal account with a recent delinquency
No recent defaults on personal accounts

Interest rates for using Behalf’s line of credit range from 1% to 3% per month, and there are no hidden fees.

Pros

No extra fees or prepayment penalties
Financing is suited for startups and small businesses
Applicants can be quickly prequalified
The application process is fast and easy

Cons

Rates can be expensive
A hard pull on your credit is performed

8. Payability

Payability

Payability is a lender that specializes in lending to eCommerce sellers. If you choose Payability as your lender, you’ll have two options: Instant Access and Instant Advance.

Instant Access allows you to receive payouts from your sales the next day instead of waiting weeks. You can receive up to 80% of the previous day’s sales through Instant Transfer or ACH. You’ll receive the remaining balance — minus fees — once the marketplace payment has been made. The typical fee for this service is between 1% and 2% of gross sales. If you have a large volume of sales, your fees may be even lower. To qualify for Instant Access, you must have:

At least three months of sales history
Average monthly sales of at least $2,000

Instant Access gives you early access to the money you make from sales, but what if you need a little extra boost in capital funds? Consider applying for Payability’s Instant Advance. Instead of issuing a loan, Payability is purchasing future receivables. Through Instant Advance, you can receive up to $250,000 to purchase inventory or grow your eBay business. You can get an advance of up to 150% of your monthly eBay sales revenue, with fees starting at 0.50% per week. You’ll save money on fees by paying your advance off sooner. To qualify, you must have:

Average monthly sales of at least $10,000
At least nine months of sales history

Similar to other merchant cash advances, Payability’s Instant Advance can get expensive, as the lender will take a fixed percentage (typically 25%) of your sales until the advance is paid off. However, with no credit checks and minimal requirements, it may be an option for sellers who don’t qualify for less expensive financing through other lenders.

Pros

No credit score requirements
Rates tend to be inexpensive
No extra fees
Funds are disbursed quickly

Cons

Only available to eCommerce sellers
Instant Advance can be expensive