Ebay via YOULEND - anyone got any pros and cons

[eddy130_1]

Hi All,

I hope sales are good!

Today we received a generous offer from eBay Capital that would be enough to rent a unit for a year. I believe that you pay a daily percentage of sales. The previous similar type of loans via P-pay were very straightforward and handy for a few thousand pounds now and then.

I’ve heard both good and bad things about You Lend. Does anyone have any stories or information before we consider contacting them?"

[typo_lee]

Avoid. They take 20% - 30% at source before ebay take their fees and as its clear ebay is going down the pan if your sales drop like ours have massively then you will be left with hardly any income after they take their percentage and ebay take their fees! Its very dangerous and could cripple your business. I think youlend need to tighten their lending criteria as if ebay does indeed go down you will be left with a loan to pay but no sales to fund it.

[floral.lines.supplies]

Wouldn't touch this with a barge pole!

[eddy130_1]

Very true, how is the customer protected if youlend or indeed eBay went south. They customer seems unprotected if there`s a concern.

Thankfully my business bank has been generous and supportive.

[pg_kicks]

It depends on the amount you wish to take and the repayments. 

I have used it a few times when I have been able to get a good amount of stock, going to the bank may have been easier and cheaper but it takes 24 hours and I don't need to do much. I never take the max amount they offer but always try and pay it back around 30% of my sales, they usually charge around 5/6%. It works fine for me as I only use it to buy stock which in turn creates more sales so the repayments havent crippled me or anything. I guess if the sales didnt come then ti would be a struggle.

[cavalierpostcards]

Their communication skills are terrible.

[jace_mindu]

I'm glad I came across this topic to evaluate the figures involved. It's alarming how much of a rate they take and I can't see how any business could consider such an agreement, which is blatently going to have a signifcant impact on profit margins.

I would advise looking at Klarna instead. I've been using for them for a months now and the benefit of being able to buy in bulk and spread the cost out over 3 months, has been a substantial benefit to my growing business. 3 months might seem short, but consider how you can use it multiple times. Instead of buying £1k of stock in one order, I could pace myself by placing 4 weekly orders of £250 over a month, Klarna devides those over 3x payments, and what I'm actually paying is £77.52 a week over 3 months (4.3 weeks a month), with NO INTEREST.  I use my outlook calender to monitor each payment date and ensure my 3x purchases are spread out evenly enough, sometimes just waiting a day before ordering/paying to avoid multiple payment days. With Klarna accepting orders as low as £35, you can build your balance up gradually as you learn to manage your payments. OUTLOOK!!! The real benefit to this is that you can start small, make responsible payments and grow your business organically. That's a lot safer than any loan which can effectively put you over your head with too much stock too soon. They have just implemented a temporary 'virtual card' option, which once you set up, you can use anywhere. Just be sure to screenshot the details as they will not show you the card details in your account once it is set up.

[therenewalworkshopltd]

I've not seen a wholesaler/manufacturer using Klarna, ever!

As far as I'm aware, they only offer basically credit for purchases on retail sites.  Now I may be wrong, but that is way Klarna has been setup originally.

They are not cheap at all and if you are getting interest free, the retailer is paying the cost!  Which in turn, will be included in the price you pay.

So unless I'm missing something, it is simply not something that a business can use for credit!

[vintagewatchpart]

As well as getting letters through the post and monthly emails about this, I am shocked that my private account is now seeing  "Get the funding your business needs" emails... 3rd month in a row now.

My private account is not a business! My parents' Ebay account is also seeing the same, an account they just use to sell off old clothes or unwanted items they've hoarded. 

How can encouraging private individuals to receive 4-figures of money to fund a non-existant business be justified from Ebay and how much does this reek of desperation to further bleed the funds out of us?

[typo_lee]

Will just be a standard mailshot and there is ZERO chance of a private seller gaining their hands on a youlend advance as you DO HAVE to be a business seller and submit all relevant company details and youlend have to see all your ebay transactions.