An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is warning sellers that the collapse of Silicon Valley Bank on Friday is causing delays in processing payments, according to an email from the company shared with NBC News.
The online do-it-yourself goods mega shop said it used SVB to facilitate disbursement to some sellers, and that it was working with other payment partners to issue deposits.
“We wanted to let you know that there is a delay with your deposit that was scheduled for today,” the email from Etsy said.
“We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them,” the email continued. “Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.”
Etsy did not immediately respond to a request for comment.
Etsy claims 7.5 million sellers worldwide. Regulators placed SVB into receivership around noon Friday to end a bank run on the tech lender that had begun Wednesday after it said it was seeking to raise more than $2 billion.
One affected Etsy seller told NBC News the deposits delay would have a “catastrophic” effect on his business.
Owen McKinney, who runs Kentucky Country Home laser engraving business, said in an email that he relies on the deposits to pay for items like shipping costs and materials. He said he had already reached out to one of his suppliers to delay an order for materials that he needed for next week.
“At this time, Etsy has not provided a time frame for the funds to be deposited,” McKinney said. “While I do have a website, Etsy remains a huge part of my business.”
The drama with SVB started earlier this week when the bank disclosed that it sold about $21 billion of securities and proposed to offer over $1 billion in shares, all to fundraise for “general corporate purposes.”
That move raised eyebrows…
Read the full article here
