Compare business loans for eBay sellers

Financing works a little differently for eBay sellers. Bank loans can be tough to come by, but you have a range of nontraditional financing to pick from that might actually work better for your business model.

This guide illustrates your options and helps you assess which kind of financing could fit your needs — or if you need a loan at all. We take you through the kinds of loans that are available for eBay sellers, what you need to apply and more.

How can I finance my eBay store?

Lucky for you, there are lots of financing options for small businesses like eBay stores. These include:

• Lines of credit. If you always need money to maintain your inventory but don’t have consistent sales, consider opening a business line of credit.
• Peer-to-peer business loans. Rather than provide funding themselves, online marketplaces help connect you with investors willing to take on your loan.
• Merchant cash advances. Merchant cash advances like PayPal Working Capital can help seasoned sellers get ready for a busy season. They’ll deposit a cash advance directly into your account and then take a specific percentage of your sales. Some will charge interest — which can be high — while others ask for a fixed fee.
• Microloans.These small-dollar loans are particularly useful to eBay sellers just getting off the ground and need a few hundred or thousand dollars to purchase a key piece of equipment or build up inventory.
• SBA loans. SBA loans are government-guaranteed small business loans that offer low interest rates and longer repayment terms than most lenders. SmartBiz offers SBA loans and streamlines applications for faster funding.
• Startup loans.Loans for new businesses could be particularly useful to eBay sellers that are new to the game. They tend to have less strict eligibility requirements and can come in smaller amounts and terms. Be prepared to submit a business plan.
• Fixed-term business loans. These are more traditional Get a fixed-term business loan with predictable monthly payments business loans that are funded in one lump sum and repaid over a set period of time. They’re better suited for heavy weight sellers: You’ll usually need to have been in business for at least one year and have monthly revenue of $10,000 or more to qualify.
• Personal loans.Personal loans may be the way to go if you have a small one-time business expenses like launching a new website, buying new equipment or advertising. These loans could have lower interest rates than business loans, especially if you have an excellent credit score.
• Crowdfunding. Got a small following? Or a social network? Set up a campaign on a crowdfunding platform and ask your friends and fans to make small contributions.
• Friends and family. Borrowing from friends or relatives is a financing option that gives you a little more leeway than a professional lender will allow. Just make sure they know what they’re getting into so you don’t damage your relationship.

Compare top online business lenders

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Name	Product	Filter Values	Loan amount	APR	Requirements
Fora Financial business loans Finder Rating: 4.1 / 5: ★★★★★			$5,000 – $500,000	Varies	6+ months in business, $12,000+ monthly revenue, no open bankruptcies	Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.	Go to site More Info	Compare	loading Fetching your data…
Kickfurther inventory financing Finder Rating: 3.9 / 5: ★★★★★			– $2,000,000	Not applicable	Varies	Get a crowdfunded loan for your e-commerce inventory.	Go to site More Info	Compare	loading Fetching your data…
Lendio business loans Finder Rating: 4.75 / 5: ★★★★★			$500 – $5,000,000	Starting at 6%	Operate business in US or Canada, have a business bank account, 560+ personal credit score	Submit one simple application to potentially get offers from a network of over 300 legit business lenders.	Go to site More Info	Compare	loading Fetching your data…
National Funding business loans Finder Rating: 4.75 / 5: ★★★★★			$5,000 – $500,000	4% to 8%	Be in business at least one year and make at least $150,000 in annual sales. Other loan types have additional requirements.	Working capital loans and equipment financing, some high-risk industries may be eligible.	Go to site More Info	Compare	loading Fetching your data…
Fundbox lines of credit Finder Rating: 4.2 / 5: ★★★★★			$1,000 – $150,000	Not stated	6 + months in business, $100,000+ in annual revenue, 600+ credit score	Get flat rate, short-term financing based on the financial health of your business, not your credit score.	Go to site More Info	Compare	loading Fetching your data…
Bitty Advance business cash advances Finder Rating: 2.8 / 5: ★★★★★			$2,000 – $25,000	Not applicable	$5,000 monthly bank revenue, 6+ months in business, business bank account open 3+ months, 450+ credit score	With APRs in the triple digits, this is best saved as a last resort.	Go to site More Info	Compare	loading Fetching your data…

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Is there financing specifically for eBay sellers?

Yes. Some lenders offer loans tailored for online businesses like your eBay store, including:

• LendingClub. LendingClub is a peer-to-peer lender that provides a client adviser to help you navigate your options. You could get a loan within days, but your business must be at least two years old and you must own at least 20% of it.
• Kabbage.Kabbage is a popular choice among eBay sellers who want a line of credit, rather than a traditional loan. But it’s best for established sellers with steady sales — missing a payment can lead to mounting fees and could ultimately hurt your business.
• Dealstruck. Dealstruck offers inventory lines of credit and loans tailored for online retailers. You’ll have an easy time signing up to get decent interest rates.

What should I look for in an eBay loan?

When trying to find the right loan for your eBay store, rates and terms are important. But they’re not the only thing you should consider. Pay attention to these aspects when

• Loan amounts. Do you need a bit of money to set up a website, or are you looking for a chunk of cash to finance your inventory? Narrow down your options by looking at loans that will give you just enough — and try not to borrow more than that. Otherwise you’ll have to pay more in interest.
• Loan terms. Can you pay your loan back right away, or would you like something open-ended, like a line of credit? Find a lender that offers a repayment term that fits your budget.
• Your eligibility. The vast majority of business lenders have minimum revenue requirements, which will usually be around $10,000 monthly or $100,000 annually. Some lenders require that you to own a specified percentage of your business, while others might not give you money if your business hasn’t been around for more than a year. Make sure you meet the lender’s requirements before choosing a loan.
• Interest rates. Interest rates vary across lenders.The amount you want to borrow, your lender, loan term and type and even your credit score can factor into the rate you’re ultimately offered.
• Fees . Read the fine print and know the costs when you apply for a loan — some come with hidden origination, application and prepayment fees.
• Repayment costs. Avoid applying for a loan with repayments that you can’t afford — and make sure you’re clear on when they’re due before you sign your loan documents. Repayments can be monthly, weekly or even come out of your sales each day, depending on what type of financing you choose.

What do I need to apply?

The documentation you’ll need to assemble before applying for a loan will differ by lender and loan type — especially when it comes to loans for e-commerce businesses like eBay stores. Generally, you’ll need to have financial records for yourself or your business, a business plan and your personal information. You may also need to provide your personal credit score.

Is a business loan the right choice for you?

Bottom line

Taking out a loan can be a solid way to boost your eBay presence and better compete in the e-commerce world. Comparing your options and choosing the financing that best fits your needs is the best way to ensure your long-term success.

Frequently asked questions