Compare business loans for eBay sellers | Boost your sales in 2018
business loans for ebay sellers

Compare business loans for eBay sellers

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Get financing from a trusted lender to grow your eBay business.

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.

LoanBuilder, A PayPal Service Business Loans

Our top pick: LoanBuilder, A PayPal Service

Customizable business loans with no hidden fees.

  • Min. Amount: $5,000
  • Max. Amount: $500,000
  • One-time fixed fee charged over the life of the loan
  • Acclaimed customer service
  • Requirements: $100,000+ annual revenue, 1+ years in business, 600+ personal credit score

    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 like Bitbond help connect you with individual investors willing to take on your loan. In fact, Bitbond specializes in peer-to-peer business loans for eBay sellers.
    • 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 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

    Rates last updated August 18th, 2018
    Unfortunately, none of the business loan providers currently offer loans for these criteria.
    Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $500
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans with no origination fee for business owners in a hurry.
    $5,000
    $500,000
    Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
    Lending Express Business Loan Marketplace
    $5,000
    $500,000
    At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
    LendingTree Business Loans
    Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    Seek Business Capital Funding Solutions
    Startups and newer businesses could qualify for loans and credit cards with a custom financing package.
    $5,000
    $150,000
    Personal credit of 680+, no bankruptcies in the last 4 years.
    BizLoans.io Business Loan Marketplace
    Get connected with wide range of loan amounts and multiple loan types from reputable lenders.
    $20,000
    $500,000
    Must have good credit and at least 6 months in business.

    Compare up to 4 providers

    Is there financing specifically for eBay sellers?

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

    • Bitbond. Bitbond is a peer-to-peer platform that connects you with investors and provides resources to improve your eBay business. Its interest rates and fees tend to be low because it uses bitcoin to avoid transfer and exchange fees. A bonus: You don’t need a credit score or bank account to apply.
    • LendingClub. LendingClub is another 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.

    Three quick tips for smart financing

    1. Understand the terms. So many eBay sellers run their businesses into the ground because they didn’t understand the terms of their loans. Unless you’re applying for an SBA loan, you won’t benefit from regulated terms — which can result in high hidden fees or interest rates. If something sounds too good to be true, it probably is.
    2. Only borrow what you need. Taking out more than you need is a recipe for debt — remember, you’re paying interest on the full amount of your loan.
    3. Don’t use a loan to make up for losses. It’s usually not a good idea to take out a loan when you’re already in the red. Defaulting on a loan can land you in a worse financial position.

    Is a business loan the right choice for you?

    When should you take out a loan?When should you think twice?
    • When you’re doing well. Do you have a consistent record of sales and want to step up your marketing game? Taking out a loan could help you meet your needs with little risk, as you’re likely able to pay back your loans on time.
    • When you want to expand. If you don’t have the resources to meet high demand, a loan could be the extra boost your business needs to take it to the next level.
    • When you’re suffering losses. Think hard before taking out a loan when your business is losing money each month. There’s a chance you’ll fall behind on your payments, resulting in fees, penalties and even negative cash flow, if you’ve agreed to automatic daily repayments.
    • If you want to make a larger investment. If you take out a loan for your eBay store and aren’t able to make the payments as easily as you expected, you can easily damage your credit score.

    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

    Anna Serio

    Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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