Depop Business Loans
If you’re transitioning your Depop shop into a full-time eCommerce business, then you might need working capital to help you get there. Read more about Depop business loans and apply below.
- Funding from £1,000 to £10 million
- Decisions in as little as 1 hour
- Compare funding options from trusted lenders
- Check your eligibility in minutes
It's fast, free and won't affect your credit score
Trusted by Hundreds of Business Owners
Why get finance for your Depop store?
As you grow your Depop shop, you might encounter unique financial challenges. For example, your cash flow can quickly become tied up in any unsold stock or withheld funds (e.g. from delayed delivery or missing tracking information), or you spot an inventory opportunity last-minute and need funds.
Applying for a small business loan quickly gives you access to the funds you need to capitalise on growth opportunities like these:
- Professional photography. Hire a professional photographer for product pictures, or purchase professional camera equipment and accessories to upgrade your product images.
- Marketing and advertising. Run targeted social media campaigns or invest in influencer marketing.
- Purchase bulk inventory and wholesale stock. Buy in bulk to access substantial discounts, or take advantage of discounted wholesale rates on end-of-season clothes or deadstock supply.
- Make use of dedicated storage space. If you’re working from your spare room, you can finally move into a commercial warehouse space.
- Scaling your small business. Hire part- or full-time employees to help you pack your orders, manage your marketing, or cover accounting software expenses.
What types of business loans are available for Depop sellers?
We work with a panel of expert UK lenders offering all kinds of finance options for Depop sellers. Here are a few options worth considering:
1. Unsecured business loans
With an unsecured business loan, you don’t risk any of your assets, so this type of finance is very popular with eCommerce stores. You can access up to £500,000 in a matter of days to spend it however you like (as long as it’s business-related). Lenders will typically look at your monthly sales volume, bank statements, and your cash flow.
2. Merchant cash advances (revenue-based finance)
A merchant cash advance (MCA) is a great option for any small business taking card payments from customers. Unlike traditional loans, you repay an MCA as a percentage of your card sales each month or week, depending on the loan agreement. This means repayments fluctuate with your card sales, so you’re not panicking about making fixed repayments when you’ve had a low sales month. You can apply for between £2,500 and £500,000 with an MCA.
3. Equipment and asset finance
If you need high-end equipment like commercial-grade steamers for your clothes, thermal label printers, or photo studio equipment, you can make use of equipment financing. A type of asset finance, you use the equipment you’re purchasing as the security for the loan. You can either purchase the equipment or lease it. This helps you access top-quality equipment without depleting your cash reserves by spreading the cost of your purchase over months or years.
4. Government-backed start-up loans
As a startup, if you’ve been trading for less than five years, you might be eligible for a government-backed startup loan. You can access between £500 and £25,000 for your new business if you’re over 18, live in the UK, and have a UK-based business. You still pay interest on the loan, but it’s at a lower rate of 7.5% each year.
Am I eligible for Depop business funding?
Although eligibility varies depending on the lender, most alternative lenders look for the following basic criteria:
- UK-based business with a business bank account
- Minimum trading history of three months (unless applying for a startup loan)
- UK-registered business (sole trader, limited company, or partnership)
- At least 18 years old
How to apply via Capalona
Applying for Depop business funding is quick and easy with our free comparison tool:
- Fill in our short online form. Tell us what you’re looking for, the reason for the loan, and how long you’d like to repay it.
- Our tool will match you with eligible lenders. Compare offers in your own time, compare information including interest rates, total repayable, and terms.
- Choose your loan offer and apply through the lender directly.
- If approved, receive your funds directly from the lender.
Depop business loan FAQs
Yes, not all lenders require businesses to be limited companies. Depop sellers typically start out as sole traders and change into limited companies as they grow.
No. We only perform a soft credit check at this stage. This means the check is only visible to you; no other lender can see this. The lender will perform a hard credit check if you decide to go ahead with the loan application.
Yes, you can. We work with a variety of UK alternative lenders who look at your business holistically; i.e. they don’t just focus on your credit score. We also have bad credit loan options.
Ready to find and compare eligible Depop business loans? Find and compare loans today.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
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