Marketplace Etsy delays payments to sellers after the bankruptcy of Silicon Valley Bank.

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The popular US marketplace for small businesses, Etsy, is delaying payments to sellers after the bankruptcy of Silicon Valley Bank (SVB). The company's main partner accounts were set up with SVB as part of a long-term contract with the bank, which are now inaccessible due to the financial organization's collapse.

Sellers on the platform reported being left in the dark about the situation. They are now unable to receive planned payments and are concerned about the future of their shops.

Etsy has promised that the platform will begin payments to sellers through other payment partners, with some delayed payments processed by March 13.

Many small business owners with shops on Etsy rely on income from selling handmade items on the platform, and the absence of planned payments may make it difficult for them to cover expenses related to their craft.

California's Silicon Valley Bank declared bankruptcy on March 10. The credit organization serviced half of all American companies with venture investments and 44% of organizations in the IT and healthcare sectors that went public with venture investments in 2022.

Deposits worth hundreds of millions of dollars were held by companies such as video game manufacturer Roblox and network media player manufacturer Roku. Most of their investments were not insured. The bank's collapse affected dozens of Indian startups that did not diversify their funds and used SVB as their sole banking partner.

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