Ebay's absolutely horrible track record on financing partners

[1996baby]

Has anyone noticed the lower and lower quality of lenders in ebay's working capital "program". It started with Paypal Working Capital, which really was a quick and easy way to access capital: upfront fee, reasonable payments, etc. Then there was another company, whose name escapes me now--same thing. Easy to access, fair rates, etc. Lending Point came next and, at least for me, was a good deal, although the rates were less than ideal. Now the partner is Funding Circle and they are, to be absolutely honest, a predatory lender. Just for fun, I called them to see about funding. I'm lucky that I don't need capital right now because, with a 750+ credit score, perfect on-time payments, ebay seller for 20 years, way above 10k a month in sales, their rate for me was 22.9% for a $5k loan. Credit card rates. Why has ebay thrown us to the wolves? Each successive funding partner gets worse and worse and, guess what, they don't care.

[dbfolks166mt]

     If I needed working capital eBay would be the LAST place I would look for it. 

[a_c_green]

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@1996baby wrote:

I'm lucky that I don't need capital right now because, with a 750+ credit score, perfect on-time payments, ebay seller for 20 years, way above 10k a month in sales, their rate for me was 22.9% for a $5k loan. Credit card rates. Why has ebay thrown us to the wolves? Each successive funding partner gets worse and worse and, guess what, they don't care.

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I imagine either the better lending outfits were having too many defaults, and bailed as soon as they could, or the sleazier high-interest lenders that came along later were offering eBay a better cut of their higher interest rates. Their target sellers are probably the same folks who don't trust banks, or at least don't know that they can probably find much better rates just by shopping around a bit.

Whenever I'm offered an unsolicited credit card or loan of any kind that I had not actually gone out looking for, I peek at their interest rate just for yucks. It's never pretty.

[theteamsetguy]

@1996baby ,

Interest rates for all types of loans have went substantially in the last three years. 30 year mortgages went from the mid 2's to almost 8 percent today for borrowers with good credit. 

My unsecured line of credit interest rate at Wells Fargo went from the 6's to the low 12's today. The prime rate has gone from 3% to 8.50% today.