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PayPal Working Capital Loan

Borrow up to 25% of your PayPal sales from the past 12 months with a PayPal Working Capital Loan.

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This innovative financing option from PayPal lets you benefit from a flexible repayment system that is repaid through your PayPal sales. Just apply for finance and then select the proportion of your sales that will be deducted automatically as your repayments. So, if you do well one month and have a slow month the next, the percentage you've selected as part of your repayment plan will remain the same but the monetary amount will be smaller. This is ideal for people who are self-employed and small online businesses, as income generally fluctuates from month to month.

How does the PayPal Working Capital Loan work?

You can borrow up to 25% of your PayPal sales over the past 12 months, with a maximum amount of $97,000. You then select a percentage of your future PayPal sales that will go towards the amount you've borrowed and the fixed fee. Automatic repayments then come out of each PayPal sale and will continue until your balance is paid off in full. There are no set loan terms, as you could potentially pay off the amount you've borrowed in two months depending on the amount you've borrowed and how successful your PayPal sales have been.

Once your application has been approved, you will receive the funds in less than one minute.

Features of the PayPal Working Capital Loan

Features of this business loan include:

  • One fixed fee. PayPal Working Capital charges you one fixed fee for the duration of your loan. This fee is determined by a few factors, including what percentage of your sales you select as a repayment amount. It is also determined by your loan amount and your PayPal sales history.
  • Flexible loan terms. You are required to pay 5% or 10% of your total loan amount (which is the amount borrowed and the fixed fee) every 90 days. As PayPal has information on your sales history, it can accurately gauge just how long it should take you to pay off the amount you've borrowed. There is a 5% minimum applied to loans that will take more than 12 months to pay off. The 10% applies to loans that will take less than 12 months to pay off.
  • No fee for additional repayments or payment in full early. There are no fees that are charged for paying off the amount owed early or making additional payments to lower the balance.
  • Flexible borrowing amount. You can borrow up to 25% of your PayPal sales over the last 12 months. This is up to a maximum of $97,000.
  • One loan at a time. You can only have one PayPal Working Capital loan at a time. This is so repayments are kept simple and affordable for you.
  • Fast application process. The application process will take five minutes, as it uses your PayPal account which will have all the information ready for you upon applying. All you need to do is select the loan amount you want, set the repayment percentage and you'll be on your way.
  • Fast funding time. Once your loan has been approved, you will have your funds in less than one minute.

How much does the loan cost?

Some of the fees you need to be aware of are:

  • The fixed fee. Once you select your loan amount and choose how much of your PayPal sales you want to go towards your repayments, you will find out what your fixed fee is. This is the set fee that is applied at the start of the loan. This fee is determined by your loan amount, chosen repayment percentage and your business' PayPal sales history.
  • Repayment percentage. You select how much your repayments want to be by nominating a percentage of your sales to be your ongoing repayment amount. Keep in mind you need to pay at least 5% or 10% of your total loan amount every 90 days. The 5% minimum applies to loans that PayPal expects will take more than 12 months to repay and the 10% minimum applies to loans estimated to be repaid within 12 months.

How to apply for the PayPal Working Capital Loan

To apply for the loan, click on "Go to Site" and ensure you meet the following requirements:

  • Have a PayPal business or premier account for three months or more
  • Live in Australia, the United States or the United Kingdom
  • Process at least $20,000 in PayPal sales annually if you have a premier PayPal account or $15,000 if you have a business account
  • Have paid off any existing PayPal Working Capital Loan

PayPal will be able to see if you meet the eligibility criteria from looking at your sales. If eligible, once you select the amount you want to borrow as well as the percentage of sales that goes towards the final loan balance, you will have your funding in less than one minute.

A PayPal Working Capital Loan is an option for small businesses that need some capital to grow. However, consider other business loans before making a final decision.

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