The application process is generally fast and easy, and the loans offer a lot of flexibility

The application process is generally fast and easy, and the loans offer a lot of flexibility

PayPal Working Capital is a business loan service offered by PayPal, one of the biggest names in payment processing, particularly in eCommerce. Launched initially as a pilot program in 2013, PayPal Working Capital opened up to all PayPal users in 2014. This lending service is intended to help merchants get capital to grow their businesses.

In practice, PayPals financing product resembles a merchant cash advance, though technically, its a loan (not a sale of future receivables). When you get a loan from PayPal, you are charged a one-time fixed fee. Repayments of the loan and fee are made through a daily deduction of a percentage of your PayPal sales.

There is a lot to like about PayPal Working Capital. In terms of borrowing fees, PayPal doesnt specifically state a range, but you can expect to repay anywhere between $0.01 and $0.58 in fees for every dollar borrowed (according to PayPals sample calculator).

Overall, customers appear happy with PayPal Working Capital. However, some customers express frustration because loan approval tends to be inconsistent, meaning that PayPal Working Capital might not always be a dependable capital source when you need it. If you are having trouble getting approval for a PayPal Working Capital loan, we have included some tips below, which may help you get approved, or you could check out some of our favorite alternatives to PayPal Working Capital. Read More