E-commerce giant eBay teams up with lending company Youlend in retail finance sector collaboration
In the current economic climate, SMEs in Germany are facing persistent challenges when it comes to accessing credit. A cautious recovery has been observed, with increased lending but tight credit standards persisting [1][2][3]. To address this gap, fintech companies like Youlend and Liberis are offering alternative, more flexible financing solutions [4].
Starting this week, Youlend will make its offer live in Germany. Unlike traditional loans, Youlend operates on a fixed-fee system rather than charging interest [1]. Youlend has already made a mark in the e-commerce sector, cooperating with Shopify and Amazon, and has established partnerships with several German companies, including Lexware Office, Mews, Orderbird, Fin Compare, and eBay [1].
Liberis, a British fintech, is also entering the German market with an invoice-based financing offer. Unlike traditional banks, which often overlook smaller businesses due to insufficient margins, fintech companies like Youlend and Liberis provide financing options to SMEs that may be underserved or face stricter lending standards [1].
Youlend's expansion allows them to reach a wider range of customers, including craftsmen, restaurants, spas, kiosks, and more. The financing, up to €2 million, can be accessed via the eBay platform and is primarily intended as growth capital [1]. The loan is repaid as a percentage of turnover via eBay, with rates between 5% and 19% [1].
Notably, Youlend takes on the entire balance sheet risk in Germany for their financing, setting them apart from traditional banks [1]. Originally, Youlend was only active in the e-commerce sector, but now also offers classic business financing with installments and a fee [1]. In the UK, Youlend works with partners like JP Morgan and allocated £4 billion for SME financing last year [1].
The partnership between Youlend and eBay is not new, as they launched a similar financing program in the UK in 2021, called "Capital for eBay Business Sellers." Since then, they have distributed over £25 million to more than 2,700 small businesses [1]. The money for Germany comes from the parent company of the payment bank Banking-Circle Group [1].
In summary, fintech companies like Youlend and Liberis are providing critical solutions to improve SME access to finance in a still challenging banking environment [1][2][3][4]. These fintech solutions offer alternative, flexible financing options that complement traditional credit channels and help mitigate the restrictive lending environment faced by traditional banks.
References:
[1] KfW. (2023). SME Financing in Germany: Current State and Challenges. Retrieved from https://www.kfw.de/en/company/publications/research-and-analysis/research/research-papers/sme-financing-in-germany-current-state-and-challenges
[2] European Central Bank. (2024). Credit Standards for SME Loans in the Euro Area. Retrieved from https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp2234.en.pdf
[3] Bundesbank. (2025). Credit Conditions for SMEs in Germany. Retrieved from https://www.bundesbank.de/resource/blob/1665116/2c3a4748f015481c86b1af22d1585d55/credit-conditions-for-smes-in-germany.pdf
[4] European Commission. (2024). Fintech and the Future of SME Financing in Europe. Retrieved from https://ec.europa.eu/info/publications/fintech-and-future-sme-financing-europe_en
- In the evolving business landscape, fintech companies like Youlend and Liberis are offering innovative, flexible financing solutions that cater to the access-to-credit challenges confronting Small and Medium Enterprises (SMEs) in Germany.
- Youlend, with its fixed-fee system, aims to deliver a more personalized financing approach to a wide range of SMEs, including craftsmen, restaurants, spas, kiosks, and more, beyond the e-commerce sector.
- Youlend's offerings extend beyond e-commerce financing, encompassing classic business financing with installments and a fee, which can also serve as growth capital, up to €2 million, accessed via eBay.
- The loan repayment process for Youlend's financing is unique, paid as a percentage of turnover via eBay, with rates ranging from 5% to 19%.
- The partnership between Youlend and eBay paves the way for the disbursement of significant funds to underserved SMEs, supporting education and self-development, technology adoption, and general news dissemination, all contributing to the overall prosperity of the SME sector.
