eBay introduces $1M capital advances for sellers By Investing.com

SAN JOSE, Calif. – eBay Inc. (NASDAQ: NASDAQ:) announced today the launch of Business Cash Advance, a new financing option for U.S. sellers on its platform. Provided in partnership with Liberis, the product promises up to $1 million in working capital for eligible sellers, aiming to streamline access to funds with a quick online application process.

Business Cash Advance is designed to offer a personalized experience, with applications taking as little as three minutes and funding potentially transferred within 24 hours of approval. The program features flexible repayment terms that adjust according to the seller’s sales cycle, with no minimum payment requirement or penalty for early repayment. This flexibility is coupled with transparent reporting tools available through the eBay Seller Hub.

According to Avritti Khandurie Mittal, VP & General Manager of Global Payments (NYSE:) and Financial Services at eBay, the initiative seeks to support seller growth with tailored financing solutions that address the unique needs of their businesses. eBay Seller Capital, through its partnership with Liberis, aims to provide more accessible capital on flexible terms.

Rob Straathof, CEO of Liberis, emphasized the importance of offering eBay sellers fast and responsible financing alternatives, especially given the challenges they face with traditional funding sources.

The launch of Business Cash Advance follows eBay’s ongoing efforts to empower its sellers. The e-commerce giant, which facilitated over $73 billion in gross merchandise volume in 2023, connects buyers and sellers across more than 190 markets, underscoring its role in the global digital marketplace.

Liberis, a global embedded finance platform, has provided over $1.5 billion in funding through more than 70,000 transactions, contributing to the creation and preservation of jobs. Their partnership with eBay is a strategic move to expand their reach and impact within the small business sector.

This financial product comes as a response to persistent capital access gaps identified by the U.S. Small Business Administration.

The information disclosed is based on a press release statement from eBay Inc. and Liberis.

In other recent news, eBay has been the subject of positive outlooks from several financial firms. Piper Sandler reaffirmed its Overweight rating on eBay’s stock, highlighting the company’s unexpected 20% year-to-date return. The firm also emphasized the potential for Gross Merchandise Volume (GMV) growth and the impact of eBay’s share buyback program.

eBay’s recent sale of a significant stake in Adevinta ASA for approximately $2.4 billion has also garnered attention. The proceeds from this transaction are expected to fuel various corporate activities, including share repurchases, debt repayment, capital investments, and potential acquisitions.

Several financial firms, including Citi, Baird, and Truist Securities, have upgraded their ratings or raised their price targets for eBay. This reflects confidence in eBay’s growth trajectory, with Citi upgrading eBay’s stock to a Buy rating due to anticipated margin expansion and share buybacks.

eBay has also announced a partnership with Japan’s Rakuten Group to assess the U.S. market’s interest in pre-owned Japanese fashion items. Additionally, plans to incorporate PayPal (NASDAQ:)’s digital wallet, Venmo, as a payment method on its platform were met with an Outperform rating and a $78.00 price target from Keefe, Bruyette & Woods.

Lastly, eBay has announced a workforce reduction of around 9%, aligning with a wider trend of job cuts across North American firms.

InvestingPro Insights

eBay Inc. (NASDAQ: EBAY) continues to demonstrate its commitment to supporting its sellers with innovative solutions such as the newly launched Business Cash Advance. The financial health of eBay is reflected in its impressive Gross Profit Margin of 72.11% for the last twelve months as of Q1 2024, showcasing the company’s ability to maintain profitability and operational efficiency. Moreover, eBay’s dedication to shareholder returns is evident with a consistent Dividend Growth of 8.0% and a commitment to raising its dividend for five consecutive years.

Investors may also take note of eBay’s stock performance, which has seen a 6 Month Price Total Return of 25.0%, indicating a robust uptick in the market valuation of the company. With a Market Cap of $26.66B, eBay stands as a significant player in the e-commerce sector. These metrics not only reflect eBay’s current financial stability but also its potential for future growth.

For those looking to delve deeper into eBay’s financials and strategic moves, additional InvestingPro Tips highlight that the company’s management has been aggressively buying back shares and operates with a moderate level of debt, which could be indicative of a strong confidence in the company’s future and prudent financial management. With 9 additional InvestingPro Tips available, investors can gain a more comprehensive understanding of eBay’s market position and strategic direction.

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