E-commerce site Etsy has warned some sellers to expect possible delays on payments due to the sudden collapse of Silicon Valley Bank (SVB), according to multiple statements from the company.
“At Etsy, supporting our sellers is our highest priority, and we understand how important it is for these small businesses to be able to receive their funds when they need them,” an Etsy spokesperson told Forbes via email on Saturday.
“We recently experienced a delay in issuing payments to some sellers related to the unexpected collapse of Silicon Valley Bank. Our teams have been working around the clock to implement a solution, and we expect to pay sellers via our other payment partners within the next several business days,” the statement continued.
The Federal Deposit Insurance Corporation dissolved SVB on Friday after a crippling bank run by customers.
CONTAGION: Customers Line Up Outside First Republic Bank to Withdraw Money After SVB Collapse:
Credit: @Dr_PhillipB via Spectee /TMX
Etsy posted a similar statement to its website on Saturday in an effort to reassure sellers work on the problem is ongoing as the global fallout from the demise of SVB sparks action from governments and financial institutions alike.
The online marketplace for crafts and vintage items used SVB to process payments before distribution.
Following the company’s statement, Etsy sellers started urging each other to put their stores on “vacation mode.”
SVB International Fallout: UK and EU Lenders Lose £30 Billion Overnight as ‘Panic’ Spreads https://t.co/tnPGchWj71
— Breitbart London (@BreitbartLondon) March 11, 2023
This is a setting on Etsy that temporarily prevents customers from placing new orders.
Silicon Valley Bank’s collapse is the largest bank failure in the U.S. since the 2008 financial crisis, as Breitbart News reported.