Paypal Working Capital Business Loans
PayPal offers working capital loans to qualified companies that use PayPal. While most business loans require a fixed payment each month, the monthly payments for PayPal Working Capital are calculated as a percentage of PayPal sales - minimum payments are required every 90 days.
In other words, the higher the sales, the faster the loan will be repaid - and vice versa. Instead of charging traditional interest and other fees, PayPal charges one flat fee when placing an order.
What is PayPal's best working capital
PayPal Working Capital is best for business owners who:
You want flexible payments. PayPal payments are based on a percentage of your business's monthly sales. It gives borrowers the flexibility to choose a portion of their sales to be automatically deducted as payments.
You need money fast. In most cases, PayPal can approve your request within minutes. The application also requires fewer documents than traditional business loans, so it's easier to apply for them. In rare cases, PayPal will need more documentation to approve you.
You want to avoid a credit check. PayPal will not run a credit check when you apply for PayPal working capital, so it will not affect your credit score. Eligibility mainly depends on your PayPal account history.
Who is working capital PayPal is not suitable
PayPal Working Capital is not suitable for business owners who have:
Fluctuating Business Income: If your business has erratic income, you may not be a good candidate. PayPal requires you to pay 5% or 10% of sales every 90 days to maintain good standing. If your business goes for months without major sales, you may not be a good applicant.
The majority of sales are outside of PayPal. To qualify for PayPal working capital, you must have at least $15,000 in sales with a PayPal Business account or $20,000 in annual sales with a PayPal Premier account. If your business is predominantly PayPal, you will not be eligible for this service.
Special partner offers
the loan amounts
From $5,000 to $250,000
working time
One year
Minimum credit score
600
on the deck
learn more
Via Ondeck
the loan amounts
From $6,000 to $250,000
working time
6 months
Minimum credit score
600
Blue Fine
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On the BlueVine website
the loan amounts
From $5,000 to $500,000
working time
6 months
Minimum credit score
600
national finances
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On the National Finance website
What PayPal offers
PayPal offers one business loan option - a working capital loan. Working capital loans are an easy way to pay for day-to-day operations, including payroll processing, debt payments, inventory replenishment and rent.
Paypal Working Capital Details
A PayPal working capital loan works differently than a traditional working capital loan from a bank, credit union or online lender. The loan amount you may be eligible for depends on your PayPal account history rather than your creditworthiness. Furthermore, instead of requiring fixed monthly payments, borrowers are required to make a minimum payment every 90 days as a percentage of their sales.
details
The loan amount varies depending on your PayPal account history
APR PayPal does not charge an APR
Pay terms at least 5% to 10% of your sales
Payment Schedule Minimum repayment required every 90 days
Fees vary based on your sales history, total loan amount and repayment percentage; PayPal does not provide a domain
Availability in all 50 states and other countries including the UK, Australia and Germany
Speed of funding For most companies, the application is approved in minutes and funds are transferred within 72 hours; Companies that need to submit multiple documents may face longer funding times
How To Qualify For A Paypal Business Working Capital Loan
Business loan applications are approved or denied based on a number of factors. All lenders have their own unique underwriting requirements, but they usually include information from the applicant's credit profile and other factors that demonstrate the ability to repay the loan, such as business income. Meeting the requirements below will not guarantee approval, but they can help you decide if a business loan is the right option for you.
Personal credit score
While most business loans will check your personal credit score, PayPal Working Capital does not do a credit check. No minimum personal credit score is required to qualify.
working time
While many lenders require your business to be at least six months old to qualify for a business loan, PayPal only requires