Has anyone used PayPal business funding?

[Tech4Homes]

It appears to be a great idea, if you have a PayPal business account that is used regularly you can apply for a "loan" from PayPal. Depending on how much and how frequent payments into your account are will determine how much they will lend you. As far as I'm aware no other checks are made.

They set a fee for the loan rather than APR's etc and the loan is repaid over time from future sales via PayPal. I think it works on a percent of every sale that comes into your account will go back to the loan, so if you make a load of sales you could potentially repay the loan very quickly.

I'm aiming to do a retail show this year and may need to borrow a small amount of money extra (only £1500), this seems a much better way of doing it compared to a bank loan as I should be able to make enough sales at the show via PayPal to clear that loan.

So just wondering if anyone has used it and has any further information/reviews on it?

 

[NoUserName]

I have looked in to this too and for small amounts it looks really good, also it works out far cheaper.

 

[Pish_Pash]

It's a good product & I'll certainly be using it...this is a perfect example of a 'lender' having good insight into your trading history & prepared to take a punt on you....I'd imagine Amazon will be doing something similar very soon.

Anything that sticks one up the traditional lenders is a good thing!

 

[Raw Rob]

Someone posted about this recently with some figures and I worked out that a standard bank overdraft would have been much cheaper. But of course it depends on the exact figures, you need to do your own calculations.

 

[Christine Hough]

Presumably you do not have to put your house up as security for Paypal.
This is what worries me about a bank loan as I understand that even if you pay off the loan, years later they can still use the charge on your house if you hit difficulties.

 

[Scott_Cruz]

looks good

 

[Chris Ashdown]

Presumably you do not have to put your house up as security for Paypal.
This is what worries me about a bank loan as I understand that even if you pay off the loan, years later they can still use the charge on your house if you hit difficulties.

I think they do keep the forms active but when a overdraft or loan is fully paid you can ask for them to remove the guarantee from future actions

 

[GoPromotionalUK]

PayPal Working Capital may be a good funding option. PayPal Working Capital bases your loan amount on what you have earned through PayPal over the last twelve months.