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LindaKay
01-30-2014, 11:48 AM
Did anyone get an email about PayPal Working Capital?

Supposedly, it's a loan that doesn't check your credit score. Instead, they base their offer off of how much you bring in each year.

You repay the loan by giving them a certain percentage of all of your sales.

It seems like a pretty good option. Has anyone looked into it yet?

grantsedlak
01-30-2014, 04:25 PM
Hi Linda,
They are cash flow loans. I offer a similar type of financing with terms up to 18 months. I believe pay pal limits their term's to 6 months with a max if $50,000. Great options for people who don't quite make the SBA cut.
-Grant Sedlak

jubvman
01-30-2014, 11:35 PM
Is this loan offered by PayPal themselves or a third party? I never heard of PayPal offering something like this. Seems like a good concept, but what about all these people with 'stealth accounts' who can just get the loan and close the account whenever they want.

delusional
01-31-2014, 01:08 AM
I haven't received an email. Be sure to really read what the offer is because whenever someone doesn't check your credit score, there is bound to be catch. You should maybe even get in touch with someone who has experience in the finance field and let him or her tell you what the pitfalls of this program are.

novasparker
01-31-2014, 11:17 AM
I have not heard about this, but it sounds intriguing. Paypal has been a bit of a pioneer in the alternative payments industry, first by offering a sort of bank account for those who are primarily unbanked and now by offering loans against your receivables. I have not yet seen this email but I will be on the lookout. Thanks for the heads up.

LindaKay
01-31-2014, 01:23 PM
https://www.paypal.com/webapps/workingcapital/tour

There is the official link where you can learn a little more about it. It's pretty interesting to me. I'm sure it's not the BEST choice out there, but it's yet another option out there for those who need help with funds.

oregano
02-01-2014, 06:05 AM
Thanks for bringing that to our attention. It could be an interesting option for some small business owners, but I suspect you do need to be putting quite a lot of sales volume through Paypal to qualify for a loan, and it does tie you to them for the duration of your loan period (although there are no penalties for paying it off early). The example on the page is for someone selling for $100,000 a year via Paypal, and who receives the maximum loan of 8% of their annual Paypal sales figure. It also says the pricing depends on your annual sales volume, so many borrowers will be paying more in fees than in this example.

And a lot of people have had bad experiences with Paypal in general, so perhaps some caution is required if you're thinking about applying for one of their working capital loans. The bank they work with - WebBank, based in Utah - has also, together with eBay (owned by PayPal) been under fire for charging sky-high interest rates and fees to some borrowers under their Bill Me Later consumer credit scheme. I wonder who owns WebBank???

novasparker
02-01-2014, 01:48 PM
I agree, Oregano. I know that a lot of people have had some really big concerns with the way that Paypal has handled their business in the past, so does it make sense to put all your eggs in one basket? I think that when you have a lender than has that much control over the account that receives all or a majority of your income, it might make it a bit risky. Of course Paypal/eBay either owns WebBank or has a large stake in the company. It's the only reason that Paypal would promote such an offer so heavily.

cpefley
02-01-2014, 01:54 PM
I didn't notice, but I will have to check my email. That sounds like an interesting idea, and maybe worth looking into. I wonder what the rates are. Thanks for sharing!

jfab
02-04-2014, 02:31 PM
Hmm I haven't gotten that kind of email. But it's not a bad deal. Although knowing Paypal, there is usually a catch that will totally benefit them more than the seller. But I'll look into it. Thanks for this information!

Bonyi
02-05-2014, 08:07 AM
Well I have never heard of such. But if they come up with such, then I think it is to their benefit. But be sure it is from paypal or it could be a scam

novasparker
02-06-2014, 12:05 PM
They catch usually has something to do with the fees. Paypal isn't going to offer you anything that truly benefits you without benefitting themselves more. They want to offer you a loan product that doesn't require you to undergo a credit check or anything, but the are most likely going to charge you more in "interest" than a traditional bank loan and I would say that the only repayment option you have is to allow them to directly debit your account or short your deposits for the agreed monthly payments.

novasparker
02-07-2014, 09:56 AM
So I did a little bit of research on this and found out that it was rolled out to a select group of businesses last year as a pilot for the new product. It has since been rolled out on a larger scale as of January 2014. I don't know what the qualifications are for the loan as I don't think it's available to everyone just yet, but I think that as it catches on that it will become more widely available. Keep your eyes peeled.

rijndael
02-07-2014, 03:51 PM
I hadn't heard about this before. Thanks OP. I looked into it but I'm not sure why you would want this type of loan instead of a conventional loan. I mean, if you have enough of a sales history to get a cash flow loan, then i'm sure your business is not much of a risk to a regular bank for a regular loan.

pandandesign
02-07-2014, 04:13 PM
I haven't gotten any e-mails from Paypal, which I would think it's some sort of loans offered by a third-party or something. You see, they have to make a profile in order to receive the benefits, otherwise, they wouldn't even try to advertise it because they have figured out way to get people to sign up for it, upon eligibility. I would have to check the interest rate, which is the biggest drawback to some people with lower credit. You have to be careful about this unless you have experience, you should be careful about this kind of loan.

LindaKay
02-07-2014, 09:28 PM
I applied. It's through PayPal. I got approved for $2,000 right off the bat. The repayment terms, if I chose to pay back 10 percent of my sales, equaled out so that I would pay $130 in interest. I didn't take the loan, but I didn't think it looked too bad. It is what it is. Of course they are going to benefit from it; why would they do it otherwise, ya know? They're in the business of making money, just like we are. :)

Linvall
03-04-2014, 01:44 PM
Did anyone get an email about PayPal Working Capital?

Supposedly, it's a loan that doesn't check your credit score. Instead, they base their offer off of how much you bring in each year.

You repay the loan by giving them a certain percentage of all of your sales.

It seems like a pretty good option. Has anyone looked into it yet?
No, I've never looked into it and I'm quite honestly, never drawn into these schemes. It's not that PayPal is not trust worthy, but they have serious issues (and you know this by reading up the various complaints that you come across on the web and other media). Furthermore, I don't take risk unless I see a great likelihood of a future return. So, who says my says through PayPal will continue?

cpefley
03-04-2014, 04:05 PM
I would describe them as not trustworthy. I don't think tht working capital from PayPal is a good idea. They are not a bank. They make that very clear, so I'm not sure why they insist on expanding their services to including banking services. You money is never as safe in a PayPal account as in a bank or credit union.

dolly fsession
03-05-2014, 06:55 AM
I have not heard about this, but it sounds intriguing. Paypal has been a bit of a pioneer in the alternative payments industry.

PaulCargo
10-27-2014, 08:11 AM
Paypal working capital is offered exclusively to select the Paypal business customer based on your Paypal sales. It is simply a share of the Paypal sales that you can choose.

EliteCapital
11-02-2014, 07:32 PM
We offer similar types of Loans and our rates are low . Elite Merchant Capital (http://elitemerchantcapital.com)

thomasjessie345
11-07-2014, 02:08 AM
I haven't received any mail yet but it is sounding like a good option. I will try to find complete details about it. If you come to know something more about it, please share.

David T. Breen
11-20-2014, 12:25 AM
PayPal Working Capital is provided specifically to select PayPal business customers dependent on your PayPal sales history. After approval, loan capital are deposited to your PayPal account within minutes and available to use for your business.
It is the best way to take loan and repay by giving a certain percentage of all of sales.

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simpssons
10-11-2019, 12:40 PM
I don't use a PayPal . I haven't received confirmation of registration

essencepk
10-15-2019, 01:40 AM
PayPal Working Capital is a business loan with one affordable, fixed fee. You repay the loan and fee with a percentage of your PayPal sales. ... If approved, receive the funds in your PayPal account within minutes. Repay automatically with a percentage of each sale until your balance is paid in full.

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essencepk
10-25-2019, 02:26 AM
Designed for businesses with a strong PayPal sales history, PayPal Working Capital is a loan that allows merchants to access funds quickly - to help grow their business. PayPal Working Capital gives businesses access to the capital they need.