Etsy warns sellers of delay in processing payments due to Silicon Valley Bank collapse
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.
More from NBC News: When will Silicon Valley Bank depositors get their money back? Silicon Valley Bank shutdown: How it happened and what comes next Rain, snow continue pounding California; more brutal weather on the way
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,»
Read more on cnbc.com
