10 Ways eBay Sellers Can Get Funding

Most of us think of eBay as a means to make a little extra cash on the side (although others may consider it only as a place where we can order those elusive early 90s-era Ninja Turtles action figures we’ve been looking for). The truth is, if you’re inclined to get serious on the selling side, eBay can be so much more. Some folks have managed to leverage their eBay seller’s accounts into $25-million-dollar-a-year businesses. But you can’t achieve anywhere near this level of success as an eBay seller without some capital injection.

In some ways, an eBay business is like any other business, so the usual methods of funding a start-up apply. However, there are some funding avenues that particularly suit online vendors. Let’s explore the ways you can secure capital for your eBay business.

1. PayPal Working Capital

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One lender with obvious fluency in eCommerce is PayPal. PayPal Working Capital offers loans with a fixed rate — instead of interest, you’re charged a one-time fee that you will repay along with the money you borrowed. The company then takes a daily deduction of a percentage of your PayPal sales until you’ve paid off the loan and the fee, so long as you pay at least 10% of your loan every 90 days. If you fall behind on this, you’ll have to make catch-up payments. The maximum term length is 18 months.

PayPal Working Capital has obvious advantages for the eBay seller. Your PayPal sales history is what determines whether you’ll get the loan, so when you apply, there’s no hard credit check and no effect on your credit score. You’ll just need a PayPal Premier or Business account that’s at least three months old and that processes at least $15K per year with a Business account (or $20K per year with a Premier account).

With an APR that tops out at around 25% (and no interest), PayPal’s terms are pretty reasonable for a short-term lender.

2. LoanBuilder

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If you want a more traditional loan option from PayPal 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 the needs of your business.

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:

• A time in business of at least 9 months
• A credit score of at least 550
• Annual revenue of at least $42,000
• Have a business based in the US
• No active bankruptcies

To apply for a loan, simply start off 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.

If you’re satisfied with the offers presented to you, you’ll populate a more comprehensive application and submit documentation such as bank statements. A credit check will be performed and your public records will be evaluated during the underwriting process. Once all documentation and information are received and approved, you’ll get your loan funds within 24 hours.

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.

3. Kabbage

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Kabbage specializes in providing capital to online merchants. In fact, the company once dealt solely with online vendors, though it has now expanded to brick-and-mortar businesses as well.

Kabbage loans are offered as lines of credit. These lines can be as high as $250K. Each draw on a line of credit is an installment loan with a term of six, 12, or 18 months. The cost of borrowing can be expensive, though — APRs typically range from 24% to as high as 99%.

Although Kabbage will take your credit score into consideration when assessing your application, they’re more concerned with your business’s cash flow. To this end, they require:

• A time in business of at least 12 months
• At least $50,000 in annual revenue OR $4,200 per month for the last 3 months

When you apply for a Kabbage line of credit, you give Kabbage access to your PayPal and eBay accounts so it can assess your sales profits and your credit. If you are approved, the money will be deposited directly into your PayPal account.

Given the fact that you can apply for a Kabbage loan, get a decision, and start withdrawing funds within minutes — and considering the company’s integration with PayPal and eBay — this is a convenient way for established high-volume eBay sellers to access a significant amount of capital very quickly. However, small-time sellers will find the high borrowing cost extremely onerous. Convenience is expensive.

4. OnDeck

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If your eBay business is in need of 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:

• A time in business of 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 $500K 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).

5. StreetShares

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StreetShares is a small business lender that offers loans, lines of credit, and contract financing. This lender also stands out in that it was founded by veterans and is therefore known to be especially veteran-friendly (you do not need to be a veteran to qualify for funding, however).

To qualify for a StreetShares loan or line of credit, you’ll need:

• Time in business of at least 12 months
• Annual revenue of at least $100,000
• Credit score of 620 or above

One important thing to note is that if your business has already made $100K, you can qualify with only a six-month business history. Through StreetShares, you might be able to qualify for financing up to $250K with term lengths from 3 to 36 months. Repayments are made via weekly ACH withdrawals.

StreetShares’s unique structure, which can result in an APR lower than loans from immediate competitors, makes it an intriguing option for the online vendor.

6. Fundbox

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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, lack a solid 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 2 months OR business bank statements from the last 3 months

There are no minimum time in business or personal credit score requirements. 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 of credit. These funds are then available in your business checking account in 1 to 3 business days.

7. BlueVine

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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 initiate draws on your BlueVine line of credit immediately. 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 6 months in business
• At least $100,000 in annual revenue
• A personal credit score of 600 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 6 months; however, 12-month terms are also available to qualified borrowers.

8. 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 75 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:

• Time in business of at least 6 months
• Annual revenue of $10,000 or more
• 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.

9. Behalf

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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 6 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 U.S.-based and must also meet the following minimum requirements:

• At least 2 years of personal credit history
• Time in business of at least 12 months
• At least 3 open personal accounts that are paid on time
• At least 1 open business account
• No more than 1 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.

10. Payability

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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 prior 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 3 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? 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 be advanced 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 9 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.

Final Thoughts

It’s not easy for traditionally-structured companies to secure business funding at all these days, much less eBay ventures, because the big banks simply don’t know how to treat online vendors. Thankfully, the last decade or so has seen a plethora of new online funding mechanisms arise to meet the demands of people thirsty to leverage the power of the internet to build thriving businesses.

Do your due diligence before borrowing from any source; compare all these solutions and more, because only you can determine what’s most appropriate for your particular needs. Good luck!