Etsy's bank fails... what next?

[#1]

The collapse of Silicon Valley Bank today is awful news.  I wonder what this means for Etsy sellers and funds.  

https://www.wsj.com/articles/after-silicon-valley-bank-fails-tech-startups-race-to-meet-payroll-4ebd9c5c

[ThePurplePuppy]

@bradgoodell 

Same here. I am on weekly payouts.

[bradgoodell]

@ThePurplePuppy I have another friend who can't post in the forum, and she confirmed she received the same email.

So glad I didn't put my shop on vacation, I would have lost hundreds of dollars in sales.  

[ThePurplePuppy]

@bradgoodell 

Well, I would have lost out on over 200 if I had gone vaca--so yeah--I"m happy I hung in there!

[EarSugarHandmade]

Mine still hasn’t zeroed and no email but it’s not quite 4pm where I am so may still happen today. 

[TCSublimation]

Mine just transferred at 4:50pm cst located in Oklahoma. I chatted into the help center and the agent said they still expect daily deposits to transfer out tomorrow as well

[LindasJewelryShop]

It's 6:50 pm on the east coast and mine still says "your payment is currently being deposited"....It has said the same thing since 1pm today. But no email so we'll see in the morning. 

[BluerGrass]

Isn't Etsy headquartered on the East Coast? Why are they using the Silicon Valley bank?  They are in NYC for goodness sake.

[MaynardMillinery]

This isn't a serious question right?

SVB was a global commercial bank, businesses all over the world could use it.

[bradgoodell]

Etsy is a international site which offices all over the world.  SVB had branches across the US and in other countries as well.

It's 2023.  There isn't really a good reason for Etsy to limit itself to a bank in NYC.  Everything Etsy does is web-based.  It's not like they are trotting down to their local bank to make cash deposits.  

My main bank is in another state as well. 

[dayspringcollectible]

In addition to the international nature of both SVB and Etsy, SVB specializes in loans to IPOs.  While they didn't underwrite Etsy's IPO, it is only natural that in its early days the new Etsy company would work with SVB for some of its needs and then continue what had been a successful working relationship.

[MissouriCrossing]

They don’t have enough money for a big bank in nyc to gaf.  There are literally apts in nyc that cost more than etsys yearly profit.  Same with most tech companies. Not enough money to be nyc vips. Also specialty banks will know your business and give you better terms.  Just like farmers use banks for farmers. It’s an industry specific bank.  It’s not like Etsy goes in with a credit score like us.  An analyst who specializes in tech companies looks at all their financials and figures out their loan terms, credit line etc.  

[loopinloop]

Our deposit is on its' way, we got the e-mail at 5:13pm, so all is well!

[dogsbythebay]

it means the sellers are screwed

[bradgoodell]

@dogsbythebay How are sellers screwed?  Etsy isn't losing any money due to the bank failure, and sellers are being paid.  

[dogsbythebay]

I do not believe this to be the case - it is a naive way to think that everything is just going to be ok and swept under the rug

[bradgoodell]

You don't believe what to be the case?

The FDIC and regulators made a public statement the funds would be covered.  

Sellers are reporting getting their deposits.  Including me. I'm certainly not screwed.  

Nothing is being swept under the rug, there are literally dozens of threads about this on the forum.  

[boygirlboygirldesign]

@bradgoodell 

I got my deposit as well. Right on time.

[CloesCloset]

My payment processed normally....

[TheArtfulTwig]

I got my payment today on time, and another reassuring email from Etsy.  From what I've read, the regulators will do everything possible to minimize the impact of this.  

[SomethingOld2New]

it's Monday and I got paid as usual.

[SomethingOld2New]

As just stated, I got paid today, but have NEVER received an Email from Etsy about all this

[MissouriCrossing]

Have any Americans had the money show up in their bank account yet? 

[HandyNat]

So I got an email after 5pm yesterday that my deposit was sent, BUT as of this MORNING its NOT in my account which is not normal!! Did anyone actually receive their money in their bank account? 

[MissouriCrossing]

Right anyone can program the computer to say the deposit was initiated or make the seller account balance zero. Who got the money in their account? 

[CraftyCornishMaids]

I have my Monday deposit, in my bank