eBay has launched a new finance initiative to help small businesses bounce back after the coronavirus crisis.
The online marketplace will provide 300,000 sellers on its UK platform with new access to financing through a partnership with YouLend.
The Capital for eBay Business Sellers (CEBS) initiative will offer loans ranging from £500 to £1m, which will be repaid directly from the sales the company makes through eBay’s platform.
The launch of CEBS comes at a time when many small businesses are facing cash-flow difficulties as a result of the pandemic.
New research from eBay reveals that a third of the UK’s almost 6 million small businesses face closures in under a month due to “inadequate access to financing”.
The findings lay bare the difficulties businesses of this size face when attempting to gain financing, with two in five small businesses being denied a loan from a bank.
One in three of the small businesses surveyed said they were rejected for government financing, while a further 44% said they had not been able to access any Covid-19 support during the past year.
Small businesses suffering most during pandemic
Hundreds of eBay sellers have already signed up to receive funding through CEBS and the etailer plans to unveil two further financing partners in the coming weeks to expand the proposition.
General manager of eBay UK Murray Lambell said: “Small businesses make up 99% 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.
“CEBS is intended to help plug this gap, giving small businesses quick access to a range of financing options.”
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