Square and eBay Team Up to Boost Small Business Lending

As small business lending becomes more competitive in the fintech space with PayPal and Amazon offering lines of credit to sellers using their platforms, Square announced in a press release this morning that it will be boosting its small business lending through a partnership with e-commerce giant eBay.

“While many small businesses still struggle to obtain the financing they need, Square Capital will provide eligible eBay sellers with a simple, seamless, and transparent funding experience,” the press release says.

According to Scott Cutler, Senior Vice President, Americas at eBay, “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.”

Since launching in 2014, Square Capital has focused on businesses that are historically excluded from the larger financial system, according to a CNBC article. The company has facilitated $2.8 billion to more than 180,000 businesses, providing financing to sellers that may be either unable to access loans from traditional lenders, or whose needs are not served by existing offerings.

“Expanding access to capital, including to those who have been underserved when seeking funding, is core to Square’s purpose of economic empowerment,” said Jacqueline Reses, Head of Square Capital. “Square Capital understands the needs of small businesses and facilitates a simple, seamless, funding experience.”

According to the release, select customers will begin receiving invitations to apply for a loan through Square Capital in the third quarter of 2018. Square Capital will assess eligibility and risk, and determine appropriate sized loan offers by taking a holistic view of an applicant’s financial profile.