PayPal Working Capital 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 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 that ranges from 36% APR up to 120% APR.

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 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 loan?

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

• Equipment Purchase
• Product or Service Expansion
• Working capital

What types of business loans does PayPal Working Capital offer?

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

• Merchant Cash Advances

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 loan off early.

What do you need to qualify for PayPal Working Capital?

PayPal Working Capital requires companies to be in business for at least 12 months. Businesses must have a minimum annual revenue of $15,000 to be considered.

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 Working Capital. Their rates fall within the limits of The Military Lending Act.

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

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

• Proof of income
• Proof of identity

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

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