Lending partnership between eBay and Santander agreed
Small businesses that sell through eBay will soon be able to secure loans from Asto, a Santander-backed FinTech app, following an agreement between the two companies.
The more than 200,000 SMEs that list on the online marketplace will be able to benefit from "secure access to funds in a matter of minutes," according to Asto. The FinTech will be able to draw more detailed conclusions regarding credit decisions and rates through eBay's selling metrics.
Amazon and PayPal - significant figures operating in the same world as eBay - already offer business loans to small organisations.
Asto is part of a concerted strategy by Santander to fend off competition from newer rivals as well as larger tech groups moving into the banking sector. It's just one of many "in-house startups" created as part of the €20 billion strategy.
The budding FinTech offers a mobile platform where freelancers and small business owners can handle all their mundane tasks in one place. Users can automate invoices, streamline expenses, view their business accounts, and apply for finance.
eBay's COO, Paolo Levoni, said: “Our partnership with Asto is designed to help our business sellers efficiently access cash loans to help them expand and manage cash flow - our latest step in helping small businesses in the UK to thrive.”