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UK Finance Company Caters to eBay Sellers

Startup iwoka provides short-term working capital loans.

eBay sellers in the U.K. who need quick cash to expand their business now have an alternative to traditional loans.

A startup called iwoca—short for instant working capital—has begun providing short-term financing, specifically geared to commercial eBay sellers. iwoca looks at a seller’s trading history and feedback score (500 minimum) as part of its credit check.

The model is similar to that of Kabbage in the U.S., which bases its lending decisions on selling history, sales volume and even shipping volume. Kabbage was initially dedicated to helping eBay sellers, but has recently expanded to address merchants on various marketplaces. Language on iwoca’s website indicates it may do the same.

Like Kabbage, iwoca lets eBay sellers apply for working capital using a simple application on its website. If approved, funds are instantly deposited in the merchant’s bank account via Faster Payments Service.

The 90-day loans are payable in monthly installments, with interest rates from 3 percent to 10 percent. A prepayment option also lets eBay sellers pay off the balance early, with less interest and no prepayment penalty.

About the author

Crista Souza
Crista Souza is founding editor of A journalism graduate of San Jose State University, she spent 13 years as a business and technology reporter in Silicon Valley. Crista has been writing about B2C and C2C ecommerce since 2008. Opinions expressed here may not be shared by The Online Seller and/or its principals.

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