If you are a seller using the PayPal platform, then there is excellent news for you. You can now get a loan from PayPal and pay it only when you make a sale. This scheme is called PayPal Working Capital. Before we go any further into details of the capital loans, make sure to check out our PayPal guides here on Brighter Guide.
There are a lot of small businesses on PayPal. Most of these businesses dream of making it big at what they do. PayPal then decided to make some arrangements that will give its small entrepreneurs a chance to expand their businesses through term loans. In the case of some people, it is a chance to recuperate from recent losses due to bad business timing or decisions.
In this post, we’ll explore:
What is PayPal Working Capital?
The PayPal Working Capital is a merchant cash advance or an online term loan that gives a loan applicant a fixed scheme to pay back the money. The loan repayments scheme is only for those small businesses that operate using PayPal as their mode of payment.
If you are interested, you may reach the PayPal Customer Care hotlines. You may also read the information here to get a good grasp of the information. Did you know that you can also earn free $100 on PayPal? Read it on our page and also learn how to withdraw money from PayPal.
Eligibility
To file loan applications and avail of small-business loans, you need to meet the following:
- A PayPal Premier or Business account for over 3 months.
- Processes no less than $20,000 in annual PayPal sales (for Premier account) or at least $15,000 in annual PayPal sales (for Business PayPal account)
- Pay off an existing loan.
- A resident of or account holder from the US, the UK, Australia, and Germany!
How does PayPal Working Capital work?
PayPal Working Capital is a fixed-amount business loan with a fixed single fee, unlike traditional loans. Loan payments are taken as a percentage of your daily sales. You don’t incur periodic interest charges, late fees, pre-payment fees, penalty fees, or other fees. Of course, you may be subjected to a credit check. Here are the steps:
- Select loan amount (max varies based on your PayPal sales history)
- Choose a percentage of future PayPal daily sales that you want to target to repay the loan amount and loan fee.
- If approved, the loan amount is deposited to your PayPal account within minutes.
- Start repayments as a percentage of daily sales until the balance is paid in full. Make additional payments or even pay the loan in full ahead of sales with no early repayment fee.
Did you know that there are different types of PayPal accounts? Please read up on our guides for premier accounts, joint accounts, and PayPal for non-profits.
How to Avail of PayPal Working Capital?
PayPal Working Capital is readily available for all PayPal account holders that run small businesses. This means that if you have been on PayPal with your small business, you are likely eligible to avail of this benefit. Here’s how it works:
- Open your web browser and go to PayPal Working Capital’s main page.
- Click the “Apply Now” button.
- Log in to your PayPal account.
- Confirm all your information regarding your account.
- PayPal will then determine whether you are eligible to qualify to get the cash advance.
- You should be informed or notified shortly if you are approved or not.
- Once approved, you may choose the amount of cash advance that you want.
- Choose the amount or percentage of your sales that you want to use as payment.
- After you finish all the required fields, agree to the terms and conditions. It would be best to read it first as the information might prove useful for you.
- Upon accepting your request, you should be able to see the loaned amount on your PayPal account shortly.
- That’s it! You may now use the funds to expand or improve your business.
If you’re using PayPal for your business, make sure you’re familiar with its different features. Please read up on our guides on seller protection, refund, PayPal fees, and secret shipping.
What is my maximum loan amount?
PayPal reviews your account history to check your credit eligibility, make credit decisions, and identify your loan amount. For your first loan, if approved, the maximum loan amounts you could get could be up to 35% of the sales you processed through PayPal over the past 12 months but no more than $200,000. Once you’ve paid off your first loan, the maximum loan amount becomes $300,000. Subsequent loans could be higher depending on whether you have good or bad credits.
Fees
Unlike types of loans, PayPal Working Capital only charges a single, fixed fee, which will be known to you before you even sign up. There are no periodic interest, hidden fees, nor late fees. The fee is computed based on your PayPal sales history, your loan amount, and the repayment percentage you select. A higher repayment percentage lowers your fee. However, while choosing a lower repayment percentage indeed brings you a higher fee, you have more flexibility since you’ll get to keep a larger portion of your sales.
Reminders
- Only PayPal verified business accounts are allowed to apply for PayPal Working Capital.
- You can loan up to 35% of your annual sales within PayPal.
- You only need to pay the loaned amount when you receive a payment through PayPal with your business.
- The deduction will be based on the percentage you had agreed upon when you applied for the cash advance.
- The loan will never incur extra interest charges. You will only pay what you agreed to pay on the application form.
- You must have at least three months of PayPal sales history.
- The business must have a good reputable rating. That means less dispute or customer returns. Consult the customer service for this information.
- PayPal Working Capital is not connected to your current personal credit score, so you will only be assessed and verified using your transaction history in PayPal.
- You can only loan one at a time. That means, as long as you have an existing loan, you will need to wait until you pay it in full.
Learn the basics of PayPal with our guides! Learn how to verify a PayPal account, change password, and activate a card.
FAQ
The PayPal Working Capital is a merchant cash advance that gives its account holder a fixed scheme to pay back the money. This scheme is only for those small businesses that operate using PayPal as their mode of payment.
You won’t be eligible if you do not meet the following:
You won’t be eligible if you do not meet the following:
> A PayPal Premier or Business account for over 3 months
> Processes no less than $20,000 in annual PayPal sales (for Premier account) or at least $15,000 in annual PayPal sales (for Business PayPal account)
> Pay off an existing loan
PayPal Working Capital is available in the US, UK, Australia, and Germany. Terms may vary per country. Please check the respective sites.
1. Open your web browser and go to PayPal Working Capital’s main page.
2. Click the “Apply Now” button.
3. Log in to your PayPal account.
4. Confirm all your information regarding your account.
5. PayPal will then determine whether you are eligible to qualify to get the cash advance.
6. You should be informed or notified shortly if you are approved or not.
7. Once approved, you may choose the amount of cash advance that you want.
8. Choose the amount or percentage of your sales that you want to use as payment.
9. After you finish all the required fields agree to the terms and conditions. It would be best to read it first as the information might prove useful for you.
10. Upon acceptance of your request, you should be able to see the loaned amount on your PayPal account shortly.
11. That’s it! You may now use the funds to expand or improve your business.
PayPal Working Capital is a fixed-amount business loan with a fixed single fee. Payments are taken as a percentage of your daily sales. You don’t incur periodic interest charges, late fees, pre-payment fees, penalty fees, or other fees. Here are the steps:
1. Select loan amount (max varies based on your PayPal sales history)
2. Choose a percentage of future PayPal daily sales that you want to target to repay the loan amount and loan fee.
3. If approved, the loan amount is deposited to your PayPal account within minutes.
4. Start repayments as a percentage of daily sales until the balance is paid in full. Make additional payments or even pay the loan in full ahead of sales with no early repayment fee.
PayPal reviews your account history to identify your loan amount. For your first loan, if approved, the maximum loan amount you could get could be up to 35% of the sales you processed through PayPal over the past 12 months but no more than $200,000. Once you’ve paid off your first loan, the maximum loan amount becomes $300,000.
PayPal Working Capital loan is only one at a time. You can re-apply after paying off your first loan, but not while it is ongoing.
No. Remember that your loan is based on your sales history, not on your personal finances, so your credit score does not affect your loan, nor is it affected by your loan.
No. There’s no need to change anything because, with PayPal Working Capital, there’s no setup. Your repayments happen automatically as a percentage of each sale.
In Conclusion
The state of our finances has a big impact on our overall health and happiness. It comes with a guarantee that extends far beyond the ability to pay rent and bills on time.
PayPal Working capital is best for those business owners that need urgent funding for their business. Although it does not offer much in terms of the amount since it will only be based on your total sales history, it should still amount to something. On the days without sales, you’ll make no payments, but there is a minimum repayment requirement every 90 days. You can read about the repayment terms , currency conversion rates, processing fees, automatic repayments and loan terms and how the application process goes on.
If you are currently in need of funding and you know that you can qualify, you might as well hit that Apply button. You should be able to get that loan a couple of minutes from now. You can learn more about loan decision, loan repayment, repayment progress, automatic loan payments or additional loans from the official website.
Do you have any questions? Anything about future loan eligibility, fixed loan fee, business expansion loans, reduction in loan fees, typical bank loan, Strong credit, annual percentage rates, daily percentage repayment percentage calculation, revenue requirements or other queries.
Feel free to leave a message in the comment section to answer them as soon as possible.
This is nice to know that there is a way on how to avail PayPal Working Capital. It will surely help small businesses.
Paypal seems to be using a high level of power with respect to both merchants and sellers. They can even say that they want to use their position in order to provide a platform for people to sell products through other merchants.