eBay has announced plans to partner with the fintech company, Square Capital, to provide loans of up to $100,000 to small businesses.
eBay customers will be able to apply for loans between $500 and $100,000 from the third quarter, where the loan will available for operations including payroll to marketing.
Launched in 2014, Square Capital is a small-business lender that hopes to support those excluded from the larger financial system.
“eBay is deeply committed to partnering with our sellers to help them grow their business, and our agreement with Square Capital is a great example of how we are helping our sellers succeed by offering them a fast and easy way to access funding,” said Scott Cutler, the eBay’s Senior Vice President.
“eBay sellers in the US will be able to apply for as little as $500 or as much as $100,000 to help with whatever their business needs might be – from payroll and inventory to equipment and marketing. We will continue to invest in our financial service offerings for our sellers.”
Jacqueline Reses, Head of Square Capital said: “Expanding access to capital, including to those who have been underserved when seeking funding, is core to Square’s purpose of economic empowerment. Square Capital understands the needs of small businesses and facilitates a simple, seamless funding experience. We’re proud to partner with eBay and enable more sellers across the US to invest in growing their business.”
Square Capital has loaned $2.8 billion to over 180,000 businesses since its launch in 2015. In 2016 the lender began its partnership program, allowing it to give loans to businesses outside of the Square ecosystem.
Shares of Square Capital have surged over 170 percent this year. Shares increased 1.5 percent following the collaboration with eBay.