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?"

[goingfishing · Accepted solution]

Absolutely in the strongest possible terms DO NOT borrow money from Youlend.  I got sucked in thought it was a great idea and it started okay.  They started by you paying a % of your daily eBay takings.  Initially this was what I received after eBay took their cut.  So if I took £100 in my bank a day Youlend would take £10 a day or there abouts.  Then they introduced a minimum weekly amount clause so if you thought you were safe by having a bad day or two a week on eBay you'd be okay as you are paying depending on what you take right... NOPE.  So if you did have a couple of bad eBay days Youlend still wanted their minimum.  This could be disastrous. 

Worse was to come, I believe back in late Feb they changed it again so it was linked to eBay not your bank.  So now instead of getting 10% of what went in your bank they got 10% of what you sold on eBay BEFORE eBay took their cut so you were paying 10% on what you were getting and 10% on what eBay were getting.

Stop and think about that for a moment.  FVF 19%, advertising fees (if going with recommended) another 20% to 30% and THEN Youlend taking 10% on top of all of that.  Good luck having much left.

If you are very very lucky you might get a 10% offer from Youlend but more often from what I've experienced or heard it's closer to 15%.  So again eBay's 19% FVF, promoted listings costs of up to 30% AND Youlend's 15% - I can only see Financial ruin with those kinds of figures.  Please be careful.

[magpiecorner1]

a truer word .......

[pg_kicks]

They are good if you need quick cash to buy stock which is reduced and you know you can sell it quickly and pay them off, or at least they were, I havent used them for over a year so you might not be able to pay it back quickly now. Unless it is going to help grow the business and you need the cash fast I'd say stay clear, getting a loan from a bank may be a much better alternative, theres a reason they offer it and its not to help you, they can claim its that but we all know its because they make money from it.

[simas-stuff]

I would stay away from them too.

[twofourdeltasurplus]

 I am on my second loan with them, but only because I needed a huge wedge for an offer very quickly, so my options were very limited, couldnt walk away from the offer.

The first started off at 25% which shocked me, but dropped to 20% after a week or less, the second one is 20% of daily takings as well. Yes it restricts funds coming in, but I can live with it as I have a huge amount of stock awaiting time and effort to sort and list, so I am happy ( just need to clone myself to get it all done)

All boils down to how desperate and quickly you need the cash I guess.

[eddy130_1]

Thank you,  after reading your poor experinece I have crossed Y-lend of the list.

The P-pay loans were much more simpler and you paid more on good days but less on poor sale days.  

I hope that you are free from Y-lend now. 

Many thanks for your honest and straightforward reply.

[eddy130_1]

Thank you,  good for fast cash. However, not neccessary the best place to lend from in the long term.

[typo_lee]

Looking at their figures they take 20% 'at source' so this greatly affects cash flow IMO. Leave well alone. Paypal wokring capital used to take only 10%!

[twofourdeltasurplus]

you could pick the repay rate with paypal working capital, and overpayments was easy.

Paid the youlend loan off earlier than expected, but will not take another one with them, will just go to the bank from now on if needed, as I did a quick check and it would of been instant with them as well, plus I could chip away at it if needed as well, something I thought was not possible.

live and learn 🙂

[watchfan700uk]

I had times when I needed money (when I was married LOL) and paypal WC was really useful then and you could give up 10% of each transaction without it being too painful. 

In fact when ebay took over with managed payments - I realised that would be an end to paypal WC. shame

[fon3s]

Hi

thanks for all information 

is the repayment come out from bank account or taken from eBay sells daily ! 

[pg_kicks]

Its comes direct from eBay now, so if you have daily payouts you just get 2 emails saying whats been sent to you and whats been sent to youlend.

[typo_lee]

Be very careful as if you opt for the 20% daily sales payment it can trash your cashflow as they take the 20% BEFORE fees etc!

[navy_blue]

I'm on my third youlend loan now and I would absolutely say DON'T DO IT! 

I was caught at a desperate time and got sucked in.

They take 20% of my total gross sales before ebay take any fees and during these quiet times it is killing me.

I really need turnover and I am struggling now.

Returns are also not taken into account so they take 20% of a sale and if that's returned, you are refunding the 100% back yourself.

If the money is used to increase your sales with new stock then maybe it works better but for me, at a time I was struggling, I comitted the deadly sin of using it to plug my drop in sales on here. 

[fashionxpress2008]

Very expensive, inflexible and extreme repayments levels (20/25%) which will ultimatelty cause you grief particulalry if your sales are seasonal when they apply the minimum repayment clause 

[eyewear247]

I regually get offered this facility but have not manged to find any information about the interest rate they charge !

[goingfishinguk]

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@eyewear247 wrote:

I regually get offered this facility but have not manged to find any information about the interest rate they charge !

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...because it usually varies from 20% to 30% of your daily takings.. BEFORE eBay take their cut.  Just avoid, at least *bleep* Turpin wore a mask..

[eyewear247]

@goingfishinguk 

...because it usually varies from 20% to 30% of your daily takings.. BEFORE eBay take their cut.  Just avoid, at least *bleep* Turpin wore a mask..

Surely that is the repayment terms you are refering too, I was interested in finding out what the actual interest rate they charge is.

[pblinens]

I got the offer many times on ebay but will never take it on board as I know you will end up with no income just big fees from ebay and all the money taken as sales are nothing on ebay now

You will be worse off definately