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As well as being one of the largest internet payment companies in the world, PayPal also provides small merchant cash advances to select companies: a product it calls PayPal Working Capital. The company, which is based in San Jose, California and was launched in 1998, was a subsidiary of eBay until 2015 and accounted for 41 percent of its total profits in 2013.

How Does Paypal Working Capital Work?

Companies who do enough business through PayPal can apply for a loan with a single flat fee instead of periodic interest payments. The loan is then repaid by deducting a set percentage of your daily sales on PayPal. If there are no sales on a given day, there is no fee to pay. Eligible companies can receive the loan in a matter of minutes.

What Are PayPal's Interest Rates?

Instead of interest rates, PayPal charges fixed fees based on the loan amount and the percentage of daily sales you are willing to dedicate to repay the loan. The cost of borrowing with PayPal ranges from 3 to 11 percent of the loan amount. To illustrate, the fee for an $8,000 loan ranges from $294 to $949 depending on whether you use 10 or 30 percent of your daily sales to repay PayPal.

How Much Money Can I Borrow from PayPal?

Loan amounts are based on the volume of sales of the business through PayPal. The maximum loan is 8 percent of PayPal sales in the last 12 months, up to a maximum of $60,000.

Which States Does PayPal Operate In?

PayPal operates in all 50 states.

What Is PayPal's Application Process Like?

PayPal's application process is fast and easy. The entire process from application to receiving funds in the business' PayPal account can take just minutes. Eligibility is determined by the business sales history with PayPal, so there's no minimum credit score requirements or need to upload documents. PayPal already has all the information it needs to assess the application. To qualify, a business must have made at least $20,000 in sales through PayPal.

How Is PayPal Better than Other Lenders?

PayPal Working Capital is a fast and inexpensive source of business cash advances with an A+ BBB rating. Its fees are lower than other leading alternative business loan providers, such as Kabbage and OnDeck. Repayment is linked to sales, so on days where there are no sales there is nothing to repay. However, businesses are limited to loan amounts of 8 percent their annual PayPal sales; so it's only an option for companies that use PayPal extensively as a payment method.

On the other hand, because loan approval is based entirely on a company's PayPal payment history there's no need for credit checks and additional information. This makes for a streamlined application process and provides a low-cost source of credit for successful business owners even though they may have bad credit.

  • Interest APR
    36% - 120%
  • Loan Amount
    $100 - $85000
  • Max Loan Term (Months)
    11
  • Minutes
  • Same Day
  • 1-7 days
  • 1-2 weeks
  • 2-4 weeks
  • Min Revenue
    $20000
  • Min Years in Business
    1
  • Credit Type Offered
    Line Of Credit
  • Intended Use of Funds
    Equipment Purchase Product or Service Expansion Working Capital
  • Institution Type
    Direct Lender
  • Approval Speed (Hours)
    1
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0 votes

I just received the limitation email before my next loan! I hope what happened to you will not happen to me...that will suck


0 votes

Got two significant loans automatically so had built my cash flow around the third arriving but this did not Is other people having the same issues with reliability from paypal

0 votes

I would like to no could you please give me a business loan between $20.000 to $60,000 on a paypal credit card that I now own that I have right now thank you like now asap grant love it


0 votes

I am rating them with three stars. I found the service very easy to apply for and very easy to work with. We were able to pay back our loan in 9 months and the fees were very reasonable. Once you can figure out what you can move out of your account each day and what needs to stay there for funding, it was pretty easy. I'm quite unhappy that as a loyal and long-time PayPal account holder, I reapplied after completing our first loan and ... was denied. We did everything according to the book, so their reliability doesn't seem to be there or something online was amiss. Not great. Will try again online in a few days and call customer service for more information. More Less


0 votes

I have just been looking at this PPWC & have yet to reach a decission despite being bombared by e mails from PP because they knew I looked at the program.

I have a question, not sure if this has been said before but it got me thinking. A friend said it's quite a risk for Paypal to do this, but it is?

Are Paypal funding PPWC entirely from their own profits, or are they funding it through money stacked up in users PP accounts prior to the user requesting the funds?

Can ... anyone answer that?

Cheers

Ed
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0 votes

Wow, just paid off an 18K PPWC loan in 9 months. Reapplied and got only 4K this time. Called PP and agent didn't really have an answer why less. Sales where actually more in 12 month period. Guess, its a crap shoot.


0 votes

UNRELIABLE. I received an initial loan of $4500 (paid in full and early), a second round for $9500 (paid in full and early) and $15500 (paid in full and early). Applied for a 4th round and was offered $3,000. No explanation. They told me because I had one slow month. Simple and easy product but don't rely on it or their algorithm. Their customer support (even supervisors) have no authority and just read a script. My business has shown remarkable growth and repayment history. I was a loyal customer ... but now PayPal has lost 80% of my business. I will get financing elsewhere. More Less


0 votes

I have never experienced financial institution like it. Just the facts. Brilliant old fashioned dragnet. Pool the hard working stable people who have lived through the 2008 crash-cover-up QE and soon NIRP at the expense of the lowest. You can trust that with this capital, the bar does not continue to raise. Too bad our government/bankers do not borrow/lend like this. Easy to forecast out come and borrower has full control.


0 votes

Just got approved in seconds for a $5000 loan. The money was deposited into my PayPal account and I already have access to the funds. I average about $100 a day from ebay sales and the PayPal Working Capital daily repayment plan is perfect for me. I'm very excited that PayPal offers this program !

0 votes

if you are a small business and have a working capital loan DO NOT PAY IT OFF EARLY the reps will not tell you this but if you do not make enough transactions even though your sales are the same THEY WILL NOT GIVE YOU another loan. I was good enough for two loans however this year evidently not. I wish I never made any extra payments. Really disgusted with the process.


0 votes

Paypal Working Capital was really helpful and I have become quite accustomed to being a regular customer with them . Though they have the flaws of slightly average customer care as many have stated above but still I feel they are any day better than Kabbage.

0 votes

First of all they are NOT A+ with BBB like it says here! You will get your loan, but they will take a percentage of EVERYTHING, not just sales, that is a gift, a deposit, a rebate, anything that comes through your paypal as cash, they will get their paws on. To call and explain to get it reimbursed is a big hassle, the reps are incompetent and not pleasant to deal with. They also lie, say a supervisor is there, then after holding say he is ... not available, just because they don't want you to speak to them. I've had to go through paypal customer relations for a 3-way call to get things resolved! Very stressful, not recommended. More Less


0 votes

I was denied getting to get my third application? And I can't get a reason why?


0 votes

Heard a bunch of crap about this program, it made me scared to give it a try. Didn't have a choice and tried. I was approved. There was no hassle, no BS, and it helped me get the capital I needed to take my business to the next level. I'm now a repeat customer of theirs, I've taken out 3 total loans, all of them have been the same. This is simply the best system out there for anyone running an online business, and banks are scared of it because ... it works and the fees are reasonable. Period. Thank you PayPal Working Capital, this review is for you. More Less

0 votes

I am currently on my second loan without a problem, can't beat it. I process most of my payments through Paypal so it works out perfect. I've borrowed around 40k between both loans and plan to take a third as well. I agree with "Scuba S", most people complaining are ebay sellers with sporadic sales, I make multiple sales daily and I think that's what the working capital loan is for, high grossing sellers that process payments through Paypal.


0 votes

Got invited and approved for a loan back in August. I decided on the lower amount just to try it. Paid it off in just a few months. As soon as I tried to apply for a second loan got denied..over and over and over. Called them and asked why. He said because your sales were down and you need at least "5 sales" a month. So now my sales have picked up again and STILL DENIED!!!

3 votes

You people make me laugh. Especially the person below me. Their system doesn't like second applications? You're a joke sir/maam. I took out and repaid $80K last year (2015) alone. We just started 2016 and I've already taken another loan. I'm on 4 loans back to back to back to back and with zero problems.

I'm sorry to tell most of you, but you don't have a business. You have a hobby and they aren't in the business of funding your stay at ... home hobbies. They are in the business of lending money to businesses.

PPWC has been excellent for me. I borrowed, repaid, borrowed again. I've used credibly in the past. Borrowed a little over $30K and got robbed! They are crooks. I've used Kabbage, CROOKS! $15K cost nearly $5K if paid on their schedule. My two loans of over $20K each from PPWC only cost $977. I can't get the bank to lend at those rates.

I dig PPWC and will continue to use it. I'll never take out another BLOC from Wells Fargo...so long as PPWC sticks around. As for the nay sayers.....get a real job
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1 votes

Initially excellent, however, I called them to see if I paid off the remaining balance if I would be able to take out another. I was advised all seems okay so I should be able to. I paid off the balance and waited a week, tried for another and declined. Called paypal again and this time they told me that they are having technical issues with people looking for a second loan. It appears their automated system doesn't like second applications and I was advised whilst there have been a ... small number that have been successful in getting a second loan (after first paid off) this is an issue they are aware of and said they hope to have it rectified in early 2016. More Less


0 votes

I'm happy with my loan with pay pal working capital. One problem is if you happen to get a return request and paypal working capital has taken their daily share out already you may not have enough in your account to pay the customer back.As eBay will liquidate that amount right away from paypal I and you need to watch that balance carefully.


0 votes

Have gotten 3 loans so far, 1st one was 2,500. Second one was only $2,000 and then the 3rd one as $4000! All were paid back within 90 days. Love paypal working capital!!!


0 votes

Great Idea. You can calculate the "interest" you pay based on the fee and predictions of your monthly sales. When I did this, I calculated the rate to be between 5-10% which I think is really good compared to other types of loans out there. I just with that the cap was higher than the 85k that I received because I would borrow millions.


0 votes

I have had 2 loans thru PayPal working capital the first for 20k and the second for 16.5k. I just paid the second loan off in 13 days and when I applied again got denied! So I called the working capital number and they said it is because my account was limited 3 days ago because PayPal wanted to verify some business information with me, I got PayPal what they asked for and they lifted the limitation right away. When I asked the working capital employee how long I should ... wait before applying again since the account was limited he said it will take 1 year to get approved after a limitation?!? Has anyone heard or been thru this same issue? More Less


1 votes

A friend who is a florist told me about PayPal giving out loans. I thought it would be great for me, but didn't realize that I'd have to have so many sales through PayPal to qualify for more than a little amount of money. My friend does onsite and online sales so it works for her company. Unfortunately, not for mine.


0 votes

The PayPal Working Capital was a new option that I looked into, but I'm not too happy with their options. Many of my small business owners friends have loved getting smaller loans through them, but I needed something larger at the time. They only give out loans up to a certain amount, and that number is smaller than ordinary lenders. From what I've heard, they're fast and easy to use, but they just didn't work out for my particular needs.


0 votes

I got an email from PayPal to apply, and I do pretty good business and get a lot of payments through them, so I figured why not? Well, I didn't get a loan. I figured it had to be a mistake, so I called PayPal and they couldn't give me a straight answer as to why they didn't fund me. I'm going to try again in the future, though, because another small business owner I talked to has had great success with loans from them. Hopefully my luck will change


0 votes

As an online retailer of estate, vintage and antique, and new jewelry, we often receive offers to purchase inventory from distressed dealers. Most often, the offer is for an entire lot, which can be a lucrative for us as we have an established clientele with specific interests.

PayPal Working Capital gives us an opportunity to check available financing when we get such offers, which are always quite time limited. The ease of application, swiftness of reply and receipt of funds makes this an excellent option to continue to grow our ... business, increase profits and continue to establish and grow our business contacts and rapport within our industry. More Less


0 votes

Perfect small loan to buy stock. Paypal simply take back a % depending on my ingoing monies. Can't wait to pay it off to take out another one. It is reasonable and I can't wait to get my next one!


0 votes

I've been doing my business transactions through PayPal for years now, so getting a loan through PayPal Working Capital was an obvious choice for me. I buy and sell online, and needed a small loan for a nice haul I wanted to buy. I knew the products I'd be purchasing would easily pay for themselves plus some, so I took out the exact amount I needed. PayPal Working Capital takes out the fee and loan repayment on a daily basis, from your sales. This worked for me, and I'm happy ... with my experience with them. More Less


0 votes

The way this company structures its fees is completely different than what I've seen before. I've taken out so many different loans for my business, and they've always been interest based (and have included additional fees). But PayPal Working Capital just charges you one fixed fee, which is great. No more dealing with changing interest rates if you want to pay off early, no more attempting to make principle only payments.. it's just so much simpler this way.


0 votes

PayPal Working Capital is extremely simple and easy to use. When I needed a small business loan, but knew my bank wouldn't take me due to my credit score, PayPal was there to help. I applied, received a response about ten minutes later, and got my loan directly in my PayPal account soon after. I had a small fixed fee, which was so easy, too. I was able to pay off the fee quickly, and that was that. No hassle of monthly payments or anything like that.


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