Online marketplace Etsy has warned sellers that it will be delaying payments in the wake of Silicon Valley Bank’s (SVB) collapse.

“We wanted to let you know that there is a delay with your deposit that was scheduled for today,” Etsy told affected merchants in an email the company shared with NBC News. “Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.”

The company attributed the delay to “the rapid and unexpected collapse of Silicon Valley Bank,” explaining that the business used the bank to fulfil payments to some merchants.

Etsy said it is currently working with alternative payments providers to facilitate deposits and is expected to pay affected sellers “within the next several business days.”

Subscribe to Charged Retail for free

Click here to get the latest retail tech news free in your inbox each day

Regulators shut down SVB on Friday, marking the largest US bank collapse since the 2008 financial crisis.

As a result, several tech firms have been impacted, with Roku saying it could lose as much as 26% of its cash reserves, or more than $487 million, due to the situation.

Etsy claims 7.5 million sellers worldwide. One Etsy seller told NBC News that the delay would have a “catastrophic” impact on his livelihood.

In an email, Owen McKinney, who runs a small business on the platform said he relies on the deposits to pay for items such as shipping costs and materials.

He added that he has already contacted 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.”

An Etsy representative said: “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.”

“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.”