PayPal Business Loan Review

PayPal Working capital is a business financing offering by PayPal Inc, based in San Jose, CA. Founded in 1999, PayPal Inc offers access to small business loans in 50 states (and Washington, DC).

What are PayPal Working capital’s rates?

PayPal Working capital offers a fixed APR business financing product but they do not disclose their rates.

Does PayPal Working capital charge an origination fee?

No, PayPal Working capital does not charge a loan origination fee. A loan origination fee is what some lenders charge for processing, underwriting, and funding a business loan. Typically fees range from 0.5% to 5% of the loan amount. Whenever possible, go with lenders that don’t charge origination fees.

What limitations does PayPal Working capital set on the purpose of the business loan?

PayPal Working capital considers business loan applications for business purposes, such as:

• Equipment Purchase
• Inventory
• Marketing
• Payroll
• Product or Service Expansion
• Technology Investment
• Working capital

What types of small business loans does PayPal Working capital offer?

Not all small business loans are made equal. The type of business loan you choose will determine the range of interest rates and terms you receive. PayPal Working capital provides access to the following business loan types:

• Secured Term Business Loans

Does PayPal Working capital charge a late fee?

No, PayPal Working capital will not charge you a late fee. However, it does charge a $20 fee if a payment is returned due to non-sufficient funds.

Does PayPal Working capital charge prepayment fees?

No, PayPal Working capital does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the business loan off early.

How much can you borrow from PayPal Working capital?

Business loan amounts start at $5,000 and go up to $500,000.

What is the maximum business loan term you can get with PayPal Working capital?

PayPal Working capital offers small business loans with terms ranging from 3 to 13 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.

What do you need to qualify for PayPal Business Loan?

PayPal Business Loan requires companies to be in business for at least 9 months. Businesses must have a minimum annual revenue of $42,000 to be considered.

Applicants with a credit score of at least 560 and up to 850 may be eligible for PayPal Business Loan. The minimum age to be eligible is 18 or the state minimum, whichever is higher.

The Military Lending Act (32 C.F.R. § 232) prohibits lenders from charging service members more than 36% APR on credit extended to covered borrowers. Active duty service members and their covered dependents are eligible to apply for a loan via PayPal Business Loan. Their rates fall within the limits of The Military Lending Act.

U.S. citizens are, of course, eligible for the services offered by PayPal Business Loan. Permanent resident / green card holders are also eligible to apply.

To qualify, applicants may need to provide the following documentation:

• Proof of income
• Business formation documents
• Driver's license
• Proof of identity
• U.S. tax identification number

What is the estimated funding time for a business loan via PayPal Working capital?

PayPal Working capital can approve (or deny) a business loan application within 1 hour and fund small business loans within 0 business day of approval.

Does PayPal Business Loan report your account activity to credit bureaus?

Yes, PayPal Business Loan reports your account activity to the following credit reporting agencies:

• Equifax
• Experian
• Transunion

Making regular on-time payments to a creditor that reports to one or more credit bureaus will demonstrate your financial responsibility and may help improve your credit.