Gaining access to a Paypal working capital Loan for business has never been easier. Not only can customers with traditional PDQ handsets apply for this type of funding, but now Paypal has entered the space and offer this service too.
It’s no surprise as they are one of the biggest merchant services providers online and one of the largest companies in the world. So why not offer their loyal customer base a cash advance facility of up to £60,000?
That’s right, if you are a Paypal customer, you can apply to gain access to this service. Typically you can advance between 5% and 18% of your annual sales. The process is simple as Paypal have most of the relevant information needed to make a funding decision quickly. In fact, the Paypal working capital product can fund in literally minutes of a successful application.
Your business or personal credit scores are not affected on application, and if you are successful, the funding is with you on the same day. This is great news for SME’s and small businesses currently using Paypal’s technology and merchant services.
Paypal Working Capital Review
Many online commerce stores are already very familiar customers of Paypal. They are regarded as the most widely used online merchant payment processors for commerce stores globally.
Shopify, Etsy, BigCommerce and WordPress customers, many of whom are Paypal merchant services customers. So when it comes to an online e-seller requiring finance for cash flow or other business growth requirements, Paypal has put together a simple funding solution for their customers.
So how does Paypal working capital work, and what are the costs?
The way the working capital works is you repay the loan by a fixed percentage of your PayPal transactions. The product also has a set fee (the charge they make to you for using the service). Unlike other forms of business finance, where you may be charged traditional interest rates on top of your borrowing.
Firstly you select the amount of funding you require for your business. The amount you may be eligible for will depend on:
- Paypal has a line of sight to all your business transactions through their platform.
- They can see your growth and the health of your business in seconds.
- By having this information already to hand, the Paypal platform can make funding decisions based on the funding you require.
- With Paypal working capital, you pay just one fixed fee. This is determined by your business sales and account history. The type of repayment percentage you choose and the amount you require.
How do I repay my Working Capital loan from Paypal?
The repayments are auto-deducted from your Paypal account when you make sales based on the criteria above.
If, for whatever reason, you don’t make any sales via your Paypal account, then it’s simple – you don’t pay anything back for that day. This is a great way to pay back an advance, as unlike traditional lending there is no fixed cost to pay irrespective of if you make sales or don’t make sales.
With a Paypal Working Capital Loan you can also pay it off sooner – without penalties! This type of merchant cash advance is a true fluid way to borrow. It works inline with your daily cash flow and doesn’t present the pressures of business loan repayments that traditional business finance can present.
Business owners across the UK are making use of this facility, and we are proud to be involved with promoting Paypal’s merchant cash advance working capital. Funding can literally be with you in just a few clicks cutting the red tape, time and in depth probing that the mainstream banks facilitate. The service is growing in awareness each day and is revolutionising business funding. It is a breath of fresh air for businesses who use Paypal on a day to day basis.