Best Business Loans for eBay Sellers

Since it’s beginning more than two decades ago, eBay has proven to be quite the wonderful marketplace. It has allowed millions of sellers to make cool, easy cash, and helped buyers purchase things with ease. What makes eBay even more special is that eBay is the place that buyers go to when they want to acquire some special item not readily available in a regular market.

To date, most people view eBay as simply a means of getting a little extra cash on the side. In fact, it’s more more than that; for many, eBay can be their primary or even sole source of income. Many sellers have leveraged millions of dollars annually on eBay.

Sounds cool, and easy, right?

Don’t get too excited just yet as you will learn that it takes quite a bit of effort to get off the ground on eBay, especially if you want to become a coveted “Power Seller.” You have to invest more to earn more, and for that you will need huge capital if you really do desire that huge profit.

Funding your eBay business is similar to any other business; however, online businesses enjoy some unique funding methods. This article will give you details on how to secure funding for your eBay business.

PayPal Working Capital

In existence for 21 years, PayPal is the backbone for many e-commerce businesses. It has led to the rise of many online freelancers because payments can be made very easily, it’s affordable and there are no regional boundaries. If you trade on eBay, more than likely you also have a PayPal account to expedite transactions. But PayPal is not just a payment method; for some sellers it offers much more.

Over the years, PayPal has enjoyed a good reputation as a top e-commerce lender. Given the inflows and outflows that they monitor in a seller’s account, they have been provided with special insight. As such, they can offer sellers working capital and a quasi merchant cash advances.

Loans provided by PayPal are charged a one-time only fixed fee. Then a certain percentage is deducted from your daily PayPal sales until the loan has been fully cleared. The maximum duration of a PayPal loan is 18 months.

eBay sellers have benefited from PayPal working capital; it’s easy because their PayPal history is the requirement if they will be granted a loan or not. There’s no stressful credit check, no credit score, no complex paperwork. If you are interested, get a premier PayPal account that is at least three months old or a business account that processes at least $15,000 annually.

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LoanBuilder is another great option if you are looking to finance your eBay business; they offer more traditional loan options. What makes LoanBuilder stand out from other lenders is the liberty it gives eBay sellers to customize their borrowing amount, terms, and payments.

With LoanBuilder, you can apply for a loan for as little as $5,000 or as much as $500,000. The repayment period varies, and could be anywhere between 13 to 52 weeks; your term length will be determined by the amount of the loan. LoanBuilder will charge you a percentage which can range from 2.9% to 18.72% of the amount you borrowed. The charge fee is fixed; this means no late payment penalty and no discount for early payment.

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To apply for a loan from LoanBuilder for your eBay business, you will need to meet three conditions:

  • To have traded on eBay or owned a business for about a minimum of nine months, and your personal credit score should be at least 550.
  • You should have annual revenue of at least $42,000.
  • And finally, your business must be located in the United States.

Starting the process is simple, you’ll be asked to complete a questionnaire, after which your eligibility status would be ascertained and, if approved, you’ll receive an offer. The next step is to submit a more comprehensive application, with documentation such as bank statements. Once this process is completed and your loan is approved, you’ll be funded within 24 hours. LoanBuilder may seems a bit stressful, as the application process is similar to traditional loans, but it compensates for that with its flexibility.


Kabbage started as a funding solution for online businesses, although it has now expanded to offline businesses as well. The primary company objective is to provide loans, generally in the form of a line of credit, which can range from $2,000 to $100,000.

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Once you’ve drawn down on the line of credit you will begin repayment; repayment will be repaid in a fashion similar to that of an installment loan, i.e. over a term of say 6 to 12 months. The eBayer interested in this loan from Kabbage should be aware that interest rates can range from as low as 18% to as high as 102%.

Unlike LoanBuilder, Kabbage pays little attention to credit score; they are more concerned about your business turnover and how much you earn. It’s simple to process a loan from Kabbage; all you need is a business that has existed for over a year, and annual revenue of $50,000. You will give Kabbage access to your eBay and PayPal accounts so that they can monitor your business and the transactions you make. The loan from Kabbage would be disbursed into your PayPal account, and connected to your bank account.

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If you find other online lending options too harsh, then OnDeck might be exactly what you need. It is more lenient than many other lenders, offering short terms loans as well as a line of credit. Borrowing from OnDesk is a streamlined process; all you need to access a loan is a business that is at least one year old, a minimum of $100,000 in annual revenue, and a credit score of at least 600. If you meet these requirements, upon approval, you will be able to access loans of up to $500,000.

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On the downside, OnDeck loans are comparably expensive, with an APR which can be as high as 98%. Nevertheless, it has proven to be a reliable go-to source of loans for eBay sellers.

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Lending Club

With the Lending Club, you will have access to business loans as well as personal loans. As an eBay seller, if approved, you’ll be able to fund your eBay business with a maximum loan of up to $300,000. The process set out by Lending Club requires a business to have been in operation for more than a year, and you should have at least 20% ownership in the business.

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For a personal loan, you’ll be able to borrow as much as $40,000. The requirements are that you be a citizen of the United States, older than 18 years and hold an account with a recognized bank in the United States. Last but not least, you will also need a credit score of at least 640. The prospective eBay borrower should understand that Lending Club operates as a P2P lending model, so loans tend to be riskier than other lending options.


Like Lending Club, StreetShares provides loans in a peer-to-peer open market model. It is open for both lenders and investors. This means there is no set interest rate as investors are essentially competing for your business by lowering interest rates, so you may be surprised to see how amazingly low the rates can get. StreetShares also has a team of experts in online business who can help you move through the process so you can be confident that you’ll get a reliable loan on the platform.

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All you need to obtain a loan on StreetShares is a business that has existed for over 12 months, yearly income above $25,000, and a credit score above 620. But, even if your business has only been in business for a little bit more than six months, you may still qualify on the condition that you have earned above $100,000. The platform can offer you a loan from around $2,000 to as much as $100,000, and you’ll have within 3 to 36 months to pay it back.

Since there is competition among investors, you’ll be able to negotiate excellent rates for your loans and finance your eBay business.


The major problem that most eBay sellers face is they can’t get a loan because of a low personal credit score, or because their business doesn’t yet have a credit history. It’s even more difficult for start up businesses or those less than a year old. If your business is in one of these situations, it may be time to turn to Fundbox for a solution.

With little attention paid to your credit score, you can get a loan (in the form of a line of credit) of up to $100,000 to take your eBay business to the next level. The first requirement is to be a citizen of the United States, then your business has to earn at least $50,000 annually. Fundbox also requires you to own a business, plus you must have had accounting software for a minimum of two years, and/or provide a business bank statement of at least three months.

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Getting a loan on Fundbox doesn’t have a requirement for a minimum time in business. There’s a fixed rate of about 4.66% and the repayment period is either within 12 months or 24 months. You’ll be saving more if you repay your line of credit early, and fees are only attached to the withdrawn amount. The best part of Fundbox is that processing the loan request is fast; in some cases you will have a response within a few minutes. Once your loan has been processed, you’ll be able to withdraw from your line of credit and the funds will be available within 1 to 3 business days.


With a good business plan, dedication and a good loan you stand a great chance of earning big on eBay. But what happens if you need more than $100,000, especially since most loan offerings are capped at $100,000? Here is where BlueVine comes in. On the BlueVine platform you can get a line of credit of up to $250,000.

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BlueVine requires only a little bit of information about you, and within 20 minutes you’ll be set to go. Unlike other loan options, your business needs a minimum of 6 months existence, annual revenue of $100,000, and a personal credit score of at least 600.

The application process is straightforward; you’ll fill a quick application, and upload your bank statements. That’s basically it. Once your application is approved, you are on your way to receiving funding for your eBay business. Loan rate starts from 4.8% for each draw on the line of credit and repayment ranges from 6 to 12 months. There is no fee for opening the line of credit or for using your BlueVine account.


As an eBay reseller, there are always times you may need a little extra funding. Let’s say you need to pay your vendor to get your goods; well, Behalf can help you out with that. With Behalf, your vendors will get instant payment for the goods or service, while you’ll have up to a 6 months grace period for repayment. eBay resellers can obtain a Behalf line of credit that could range from as little as $300 to as much as $50,000.

Behalf does not have specific requirements for age of business, annual income or credit score. Nevertheless, your business history and credit profile would be scrutinized to gauge your credit worthiness, and the interest rate that you will be charged will be commensurate with their determination. Your interest rate could range between 1% to 3% monthly on the principal amount of the loan and it will be charged every 30 days until fully repaid if the loan term exceeds that.


If you need a loan to boost your eBay business, you just can’t jump into any platform or company that offers a loan. You need to look around, take your time and ensure that the lending options you choose is best for your business. The big question is, how exactly do you know which options will best meet your business’ needs? It would be much easier if all the options are in one place so that you can make your choice. That’s exactly what Lendio offers. Lendio has created a platform that gives you access to over 75 lending partners, so you can easily find the best lender for your business. Once you apply for a loan and are made aware of all of your options, all you need to do is compare the rates and terms and go for the best.

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Any other requirement will be based on the lender you ultimately choose, the type of loan and amount, and repayment period which will also vary among the lenders.

Lendio can help your eBay business access term loans, lines of credit, merchant cash advances, business credit cards, and other financial products; all you need to begin the process is a business that is at least six months old, an annual income of $10,000 and a personal credit score of 550.

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Final Verdict

eBay sellers need loans just like every other business, but getting the loan may seem like an uphill trek. Getting a loan from a traditional lender is difficult enough for “regular” businesses, and even worse for those that operate online, simply because the the traditional agents don’t know how to treat loans to online businesses.

Over the past decade, many alternative lenders have taken the proverbial bull by the horns and set up structures that will meet the financial needs of online ventures. Thanks to these companies, eBay sellers can now boost their businesses.

There are many platforms available, but before you borrow from any source, do thorough research, and make a comparison, because not all lending policies are suitable for your business and needs.

Please feel free to add your questions in the comments section provided below.

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By Atreyee Chowdhury

Atreyee is an experienced instructional designer and has more than 11 years of experience in developing and deploying successful learning solution projects in both technical and non-technical domains. Her expertise spans across varied domains, such as automotive, telecommunications, banking and finance, ERP (SAP), customer service, information technology, etc. Atreyee’s past experience at IBM Global Business Services and Accenture in managing multiple short and mid-duration projects

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