EBay Payments Defaulting PayPal Loans

By: Ina Steiner
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EBay sellers risk defaulting on their PayPal Working Capital loans after being pushed into eBay Managed Payments. A seller sent a notice that PayPal sent him that he described as “very disturbing.”
“When the processor of your eBay sales is moved to eBay-managed payments, your business loan will default,” PayPal wrote, giving it the option of repaying its PayPal loan. But, the seller told us, “I can’t pay my working capital loan back in 12 equal installments over the next year.”
EBay sales are only a very small percentage of the seller’s total revenue, 98% coming from website sales. “I’m ahead of my repayment schedule anyway, but they don’t care and want to convert me to a fixed monthly payment,” the seller wrote.
“Am I correct in assuming that if you have an eBay account you are no longer eligible for a working capital loan?” “
Another seller who said he is in the same boat said he understands that as long as eBay sellers also have a website that processes payments with PayPal, their loans will not be in default.
But the original poster replied, “This is certainly the logical answer, but a PayPal rep told me it wasn’t yesterday. I was told we had 2 choices, which is to restructure the ready or close our eBay sales channel, both being punitive. “