Speed of application and eligibility
When you meet some basic requirements, you may qualify for a PayPal Working Capital loan. A PayPal Business account must be less than 3 months old and must generate $15,000 in sales per year or a Premier PayPal account must generate $20,000 per year.
None of the other Online lenders have such low revenue requirements. A company tends to be eligible for an online loan by demonstrating annual revenue of at least $100,000 and having been in business for a few years.
Paypal does not operate with a minimum credit score requirement, nor do they require personal collateral for their loans, so you should be relieved if you meet its basic requirements. It is rare to be approved by an online lender without a credit score of at least 620 and security.
When you need working capital in a hurry, this is the best option. You can apply to PayPal and have your funds within minutes, which is one of the fastest funding decisions we’ve seen.
Comparatively, the majority of other online lenders require that you wait at least 24 hours before they extend you a loan. The underwriting process at traditional lenders can take days or weeks. Applying online through PayPal is quick and easy. Because PayPal already knows a lot about your business and its cash flow, there is no need to provide them with more information.
Don’t assume you will be approved before you apply. PayPal’s Working Capital loans have been denied to some borrowers despite meeting all eligibility requirements.
Cash advance from PayPal
What is it best for?
For companies that use PayPal to process sales and require working capital to pay payroll or cover seasonal revenue drops.
Work Capital from PayPal allows you to borrow up to 35 percent of your yearly PayPal revenue. For the initial 2 loans, you can borrow up to $125,000 and for each subsequent loan you can get a loan sanctioned $200,000.
In addition to a flat fee, PayPal will charge you a percentage of sales toward repayment determined by your profits, account history, loan amount, etc.
Payments will be deducted automatically from your PayPal account until the loan is repaid in full. When you apply for a loan, you choose what percentage of sales you would like to repay ranging from 10% to 35 %.
Upon approval, funds are transferred within minutes, and loans are repaid within 72 hours after acceptance. In order to keep your loan in good standing, you will be required to repay at least 5% or 10% of the borrowed money every 90 days so you keep a good standing with them.
To qualify, you’ll need the following:
- For PayPal to check if you qualify, you need to have an active Business or Premier account for a minimum of 3 months.
- If you have a PayPal Business account, you must have sold at least $15,000 in PayPal sales in the past year. If you have a PayPal Premier account, you must have sold at least $20,000 in PayPal transactions last year.
- Prior to applying for another round of funding, you must pay off an active PayPal working capital loan.
Because your information and account history are already stored with the company, approving and funding generally takes only a few minutes.