EBay and Liberis Partner to Offer Cash Advances to Sellers

EBay is expanding its working capital program for sellers by partnering with Liberis.

The collaboration between the eCommerce giant and the embedded finance platform has produced an offering called Flexible Cash Advance, according to a Thursday (Sept. 26) press release.

“The new option provides sellers with quick access to larger and even more flexible funding to help expand their businesses,” the release said. “Sellers can advance funds anywhere from $5,000 up to $2 million. They also have the flexibility to unlock even more capital as they pay — but only pay for what they use.”

The release cited PYMNTS Intelligence data from the report “From Cash Flow Pain to Working Capital Gain: Automated AR/AP Solutions for SMBs” showing that 70 percent of small businesses have less than four months of cash on hand for operating expenses. Flexible Cash Advance lets sellers buy more inventory and deal with unexpected expenses and seasonal fluctuations throughout the year.

“Sellers can apply once to secure an approved capital amount through Flexible Cash Advance and get advances on demand without undergoing the application process multiple times,” the release said. “This can be a critical safety net for sellers that need access to financing anytime.”

The U.S. Chamber of Commerce found that more than half of small businesses said applying for loans is time-consuming, while 46% said the process is confusing, per the release. Applying for Flexible Cash Advance can take as little as three minutes, and funding is available in as soon as 24 hours.

The new offering follows July’s debut of Business Cash Advance, a program designed to provide eligible eBay sellers in the United States up to $1 million in working capital in as little as 24 hours.

Declining merchant optimism in the U.S. has made the effective management of working capital crucial for businesses hoping 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 in July.

Among these solutions are products like virtual and commercial cards, supply chain finance, invoice finance and asset-based lending. They give businesses quicker access to money, better cash flow management and the ability to spend money on growth opportunities without being saddled with traditional debt.

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