PYMNTS MonitorEdge May 2024

eBay Debuts Working Capital Solution for Sellers

eBay teamed with embedded finance platform Liberis to offer sellers working capital.

Business Cash Advance is designed to provide eligible eBay sellers in the United States up to $1 million in working capital in as little as 24 hours, according to a Wednesday (July 10) press release.

eBay Seller Capital is aimed at fueling our sellers’ growth by providing them with tailored financing solutions that meet the unique needs of their businesses,” Avritti Khandurie Mittal, eBay vice president and general manager of global payments and financial services, said in the release. “The addition of Business Cash Advance to our suite of offerings in partnership with Liberis enables us to expand capital availability for our sellers on flexible terms — when they need it the most.”

Liberis CEO Rob Straathof said in the release: “We understand the unique challenges eBay sellers face when securing financing through traditional means. Through eBay Seller Capital, Liberis will empower sellers with access to fast and responsible financing.”

The launch comes as U.S. merchants’ optimism is low, which means that effective management of working capital is top of mind for businesses that hope to grow and maintain stability.

“Responding to these challenges, new working capital products and financial services have emerged, offering more innovative and flexible solutions designed to help insulate businesses from ongoing economic fluctuations such as inflation, interest rate changes and even currency volatility,” PYMNTS wrote earlier this week.

These solutions include products like virtual and commercial cards, supply chain finance, invoice finance and asset-based lending. They provide businesses with quicker access to money, better cash flow management and the ability to invest in growth opportunities without being burdened with traditional debt.

While observers anticipate that the macroeconomic environment will remain relatively dynamic and unpredictable for the remainder of the year, top performers are focusing on changing the cash-conversion culture across their organization and employing advanced digital analytics solutions

“The tightening of monetary policy and inflationary pressures have suddenly made a lot of these corporates realize they need working capital for two reasons,” Chavi Jafa, head of commercial and money movement solutions, Asia Pacific, at Visa, said in an interview with PYMNTS. “One, for short-term working capital to make sure that they don’t have any operational disturbances. And two, for strategic long-term investments into newer technologies and digital solutions.”