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8 Small Business Loan Options For eBay Sellers

    Erica Seppala
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Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
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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 sellers’ accounts into $25M-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 startup apply. Luckily, some funding avenues particularly suit online vendors. Let’s explore the ways you can secure capital for your eBay business.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
eBay Seller Capital

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Best for eBay sellers looking for an in-house eBay loan solution.
Best for eBay sellers looking for an in-house eBay loan solution.

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LoanBuilder

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Best for larger loan amounts.
Best for larger loan amounts.

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OnDeck

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Best for working capital.
Best for working capital.

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Fundbox

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Best for bad credit.
Best for bad credit.

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BlueVine

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Best for quick funding.
Best for quick funding.

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Other Featured Options:

  • Lendio: Best for eBay sellers looking for a wide variety of loan options.
  • Behalf: Best for ensuring your vendors are paid immediately.
  • Payability: Best for no credit.

Read more below to learn why we chose these options.

Best eBay Loans Available Right Now

An eBay business loan can be the key to transforming your online store from a personal hobby to a profitable business. If you need some working capital to take your eBay store to the next level, you should strongly consider the following eBay loan vendors.

1. eBay Seller Capital

eBay Seller Capital



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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

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2. LoanBuilder

LoanBuilder



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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

Read our in-depth review

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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

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4. FundBox

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, 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

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5. BlueVine

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 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

Get Started with BlueVine

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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

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7. Behalf

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 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

Read our in-depth review

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8. Payability

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 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

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About Defunct eBay Partnerships: PayPal Working Capital & Square Capital

We mentioned eBay’s new lending partnership with LendingPoint. This joint program replaces earlier loan partnerships with PayPal and Square.

eBay had a partnership with PayPal Working Capital through which borrowers could have payments automatically deducted from their sellers’ accounts. This partnership ended around the time eBay’s long-standing operating agreement with PayPal ended this summer.

eBay had also partnered with Square Capital to offer loans up to $100,000. That partnership went quiet some time in 2019, and eBay no longer makes mention of the relationship.

eBay Loans: Final Thoughts

It’s difficult for traditionally-structured companies to secure business funding at all these days, much less eBay ventures. 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!

In Summary: Best eBay Loans Available Right Now

  1. eBay Seller Capital: Best for eBay sellers looking for an in-house eBay loan solution.
  2. LoanBuilder: Best for larger loan amounts.
  3. OnDeck: Best for working capital.
  4. Fundbox: Best for bad credit.
  5. BlueVine: Best for quick funding.
  6. Lendio: Best for eBay sellers looking for a wide variety of loan options.
  7. Behalf: Best for ensuring your vendors are paid immediately.
  8. Payability: Best for no credit.
Erica Seppala

Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.
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We Recommend OnDeck for Loans 🏆

Fast turnaround: as little as 1 - 2 days.
Low requirements: 600+ credit score, 12+ months in business and $100,000+ revenue.

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Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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