Online auction site eBay UK has launched a business exchange service on its website to attract small businesses.

The company aims to become a first port of call for businesses looking to pick up bargains in the way of office furniture, computer hardware and software, and other essentials for setting up or expanding a business.

"They are the kind of things that can be very expensive to buy new, and which can save businesses a lot of money," said a spokeswoman. "We're finding certain niche sectors are the first to recognise the potential. We've got catering equipment, photographic equipment and audiovisual stuff all up on site. Businesses wanting to get rid of some assets find it a good way to deal with potential buyers."

eBay has recently introduced a charging structure for everyone who puts an item up for auction. Items valued at less than £30 cost between 15p and 60p to place on the site, while anything above £30 in initial bid value costs £1.25p.

The company has introduced the charges to raise the quality of items listed on the site. "When it was free people tended to put up any old thing to see if anyone would bite, and our experience elsewhere has been that people prefer to see quality items rather than jumble," said the spokeswoman.

eBay is the UK's biggest trading community for person-to-person (also known as consumer-to-consumer) auctions. But the company recognises that the biggest growth in the next several years will come from the business-to-business sector.

"Setting up a business is not easy," said eBay UK country manager Jennifer Mowat. "The logistics and costs often seem daunting - that's why we have created a community of like-minded people who can trade goods in a secure environment and help make building a business easier."