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iwoca and eBay launch financing solution for retailers

Thursday 8 September 2022 13:30 CET | News

Germany-based online loan provider iwoca has partnered with eBay to launch the financing solution eBay Flexi-Kapital.

iwoca aims to improve access to credit for the self-employed and small businesses. Since its inception the company has enabled over 70,000 SMEs to access credit. The new solution gives online retailers direct access to short-term working capital loans from EUR 2500 to 1 million on the eBay marketplace.

The majority of credit approvals are automated and real-time, meaning merchants can typically have funds available within 24 hours of the request. Instead of interest, eBay sellers pay a one-time, fixed fee. Loan repayments are flexible seeing as they are linked to sales on the eBay platform. This means that less has to be repaid in months with lower sales. The credit can be increased flexibly in order to react to changes or fluctuations in demand.

Improved financing conditions for wholesalers and retailers urgently needed

According to data from iwoca, in Germany, the need for financing offers is above average among retail companies in a sector comparison. Almost every third wholesaler and retailer (31%) stated that would have been able to run their business much better in the 12 months before the survey had they had faster and easier access to loans.

Across all sectors, only 2 out of 10 respondents stated this. Over a third of merchants (36%) also believe it is becoming increasingly difficult to obtain credit from a traditional bank. The average for all sectors is only 19%. Compared to other sectors, a higher proportion of small business owners in wholesale and retail also agree that politicians should work to improve financing conditions for small businesses and the self-employed (36% versus 24% on average).

 

eBay Flexi Capital supports retail on eBay

The partnership between eBay and iwoca, therefore, allows merchants in Germany to get easier access to funding and grow their business on the marketplace. For example, merchants can increase sales by investing in additional inventory to offer a product during times of supply chain difficulties.

The end customers of the eBay marketplace also benefit from the increased product availability. For the new eBay Flexi-Kapital offer, the fintech company iwoca is contributing its infrastructure for credit financing and covers the entire value chain in-house. Commercial sellers on eBay can apply for and receive financing directly from the seller portal.

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Keywords: partnership, product launch, financial services, ecommerce, retail
Categories: Banking & Fintech
Companies: eBay, Iwoca
Countries: Germany
This article is part of category

Banking & Fintech

eBay

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Iwoca

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