eBay Germany are launching eBay Flexi-Kapital by iwoca, a financing solution that gives online retailers direct, uncomplicated and quick access to short-term working capital loans from 2,500 to 1 million euros on the eBay marketplace.
This is many ways similar to the arrangement with YouLend in the UK, and it’s massively impressive to see that eBay Germany have chosen a UK based finance company, set up in 2012 by Christoph Rieche and James Dear and who we’ve written about many times in the past.
With eBay Flexi-Kapital by iwoca, the majority of credit approvals will be automated and real-time, meaning merchants can typically have funds available within 24 hours of the request. Linking your eBay account will enable iwoca to assess your sales and arrange finance based on your business as it is today, without complicated loan forms to complete and bank interviews to endure.
Over a third of German merchants believe it is becoming increasingly difficult to obtain credit from a traditional bank. The average for all sectors is only 19 percent. eBay Flexi-Kapital by iwoca aims to solve this lack of available finance.
Instead of interest, eBay sellers pay a one-time, fixed fee. Loan repayments are flexible because 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 just as flexibly in order to react to sudden, unexpected or seasonal changes or fluctuations in demand.
With eBay Flexi-Kapital, we are now offering our dealers easy access to financing. The entire process works quickly and easily: from the convenient, fully digital application to the timely decision and payment to the flexible, sales-based repayment. Thanks to the new credit offer and the seamless integration into our platform, we meet our commercial sellers where they operate their business. In this way, especially in times of a more dynamic market environment, we are creating the necessary flexibility more than ever to deal with delivery problems or rising energy prices.
– Oliver Klinck, Managing Director, eBay Germany
The days of the classic principle ‘I go to the bank to apply for a business loan and waiting weeks for a possible offer’ are numbered. With eBay Flexi-Kapital, we are showing that in the future retailers will receive financing where they do their business, and that immediately. We are thus offering eBay sellers financing at a speed that corresponds to their needs and business models. Immediate access to flexible financing within the platform coupled with flexible repayment options significantly improves the ability to react to often unpredictable market conditions. This leads to more sales and better competitiveness.
– Christoph Rieche, CEO and co-founder, iwoca
