eBay moves into finance to help SMEs navigate Covid cashflow crisis
eBay UK has today announced a new finance programme to help small businesses rebuild as startups across the country face a Covid-driven cashflow crunch.
Capital for eBay Business Sellers (CEBS) will offer financing products to support the 300,000 SMEs that sell through the platform to 29m active monthly buyers.
The launch follows new research released today from eBay, which found a third of the UK’s 5.9m small businesses face going bust in less than a month due to inadequate access to financing.
It also found that 40 per cent of SMEs have been denied a bank loan, while one in three have been turned down for a loan by the government.
Around 44 per cent said they have not accessed any Covid support in the past year.
Murray Lambell, general manager at eBay UK, said that the programme will protect jobs and help businesses to reinvest.
“Small businesses make up 99 per cent of all UK businesses, yet they have been financially excluded from traditional lenders and let down by Covid support schemes.
“That’s led to a serious under-investment, leaving many at risk of going under while others are prevented from reaching their full potential.”
YouLend is the first of three financing platforms announced today as part of CEBS, giving eBay business sellers access to funding ranging from £500 to £1m. This is repaid directly from their sales.
The further two financing partners are set to be announced in the coming weeks.
Commenting on the experience of CEBS, Stan Weekes, founder of eBay business SW Trading, said: “Greater access to financing will significantly help us to grow and bounce back after what has been a tough year for so many small businesses.”