Working Capital and Lending Point

[houseofblair]

Has anyone heard when Lending Point will be offering working capital with repayment thru managed payments as we sell items?  I'm almost at a standstill and need to invest in more inventory.  I don't want a loan.  It is easier for me to repay thru a percentage of the items that I have sold.  I have contacted Lending Point a couple of times and get nowhere.  They don't seem to know when a roll out date will be.  

[thecrazyham]

I want to know this also!!  

I have been using PPWC for years, now that i got pushed into Managed Payments this year i'm at a standstill for getting working capital.  I clicked on the offer i got from ebay but got to a page where i can apply for a lending point loan, it says ebay working capital is coming soon, but its said that for months without any further info.

I checked out the lending point loans and its a horrible monthly payment, the amount they want per month is more then if i got a personal loan from a local bank for the same amount, i'm talking hundreds of dollars more in difference on the monthly payment and i would prefer to go with working capital like i had with PayPal, they take a percentage i don't have to keep track of nothing, and i always met and exceeding the minimum payment per cycle with it.  I would pay off my PPWC way before i had to each time.

[houseofblair]

I talked with Lending Point this past week and was told the same as before "we don't know when we will be rolling out the working capital portion."  When I contacted them back in July, I was told it was going to be a couple of weeks.  Now we are in October.  I'm at a standstill as well.  I don't know why they would roll out only the loan portion of their business with ebay and not have both options available.  I don't want a loan either.  I agree that the payments were too high.  I like the convenience of being able to repay through my sales.   I wish someone at ebay would let us sellers know what the deal is with the working capital portion with Lending Point.  I can't plan anything right now until I have some sort of an answer instead of the general "we don't know" message I get when I speak with Lending Point.

[theteamsetguy]

Why don’t you just get a line of credit at your bank. Payments are usually small and only on the amount you borrow. Once you repay you can borrow again and again. Interest is a lot lower than PPWC fees.

[houseofblair]

Thank you for your advice theteamsetguy.  I appreciate it.  However, not everyone has stellar credit or can qualify for a line of credit.  I've tried various avenues.  Good health to you and your household.  

[houseofblair]

I just noticed yesterday (Saturday, 10/10/20) that the working capital option from a percentage of the sales is now no where on the Lending Point site.  The last time I saw it, it said "working capital coming soon".  Does anyone know if they decided against working capital loans from a percentage of sales?  

[thecrazyham]

I'm guessing it fell through and they won't be doing it, it disappeared from the ebay seller capital page as well.  I got another email offer from eBay today saying they are adding seller capital for managed payments users, so i got excited for a second thinking maybe it was finally available, but now if you go to the seller capital page the column for working capital is completely gone.

I think they can't get it done or something.  Which sucks.  As to the posts asking why not just go with a traditional loan, its not even credit for me, its convenience.  A few clicks and i could pull out the PPWC loan, and i didn't even have to think about paying it.  The finance charge was very competitive with the interest paid to a traditional loan over its lifetime.  So it was actually a good deal.

What stinks now is i have to remember every week to do the math and make a payment to my PPWC loan that i had before getting rolled into Managed Payments.  It will be done soon though, but then i can't get another one because i am in Managed Payments now.  I got some offers from banks, they were a lot better then Lending Point could offer.  The lending point offer of up to 25k had a monthly payment of $580 for a 48 month loan.  Banks i got offers through was $430 a month for a 60 month loan.  I don't plan on going the full 60 months, but i like the "REQUIRED PAYMENT" to be lower so that if a bad month of sales happens i can still afford it.  On good months i generally pay 2-3 extra payments towards the loan.  Thats how i pay them off so fast.  But i really liked PPWC because it would take a percentage of sales, and at the end of the month if it was a good month i could make an extra payment and i never had to worry about forgetting a payment, coming up short, etc.  Because it was all automatic.

A bank loan just creates extra work for me, but PPWC is the same right now thanks to Managed Payments so its a moot point i guess.

[no-plain-white-envelopes]

I was forced into managed payments which is why I did not get another Pay pal Working Capital , because we were told ebay would have a dedicated funding source. This now appears to be another lie from ebay.

[itbsllc]

There will be no roll out date. You will be better off rolling out over to Amazon.

[houseofblair]

Well, I got my hopes up to be dashed today.  Saw the option where you could apply through Lending Point and repayment through managed payments.  Applied.  Denied.  Never had this problem with Paypal.  

[goldenkingstoys]

I had applied, and signed the disclosures and contract and they deny me last minutes.  That should be illegal.

[kensgiftshop]

---

@goldenkingstoys wrote:

I had applied, and signed the disclosures and contract and they deny me last minutes.  That should be illegal.

---

Why should it be illegal?

[metroshot]

Received a signed contract for a Lending Point loan from First Electronic Bank (Utah) for $4,000.

Now they are asking for tax returns and 1099.

Is this a good sign or bad (denial) ??

They gave me a TU credit score of 774:

[moto_partss]

@houseofblair  I spoke with one of LendingPoint managers months ago. Is the first time I have spoken to a representative that was actually honest about the situation.  Unofficially,  I was told that when LendingPoint and eBay started to talk business. The initial idea was for them to have access to sellers accounts in order for them to be able to have accurate and updated information of our sales at all times as well as being able to process the payouts with a portion of our sales. Almost at the end of the negotiations eBay changed their minds and backed up from that deal. The contract between eBay and LendingPoint expires at the end of 2023 (next year) I was told that LendingPoint didn't want to renew the contract unless eBay allowed access to sellers account ( in order for them be able to offer working capital loans  with sales repayment plan) Now, how much of this will actually happen ? ( We will not know until we reach that point ) Why aren't they providing different working capital loans with different companies ? ( Like they already did in Germany and UK)  I don't know either (perhaps they have an exclusive contact with LendingPoint) All I know is that LendingPoint's loan terms are horrible and not at all convenient or productive for any of us. eBay better do something and FAST before half of eBay stores are out of business.