Paypal Loans (Working Capital) Anyone?

Raw Rob

Free Member
Aug 1, 2009
1,129
236
London/Portugal
Yes, twice. Very easy. Not the cheapest loan I'm sure, but not too bad - I like how simple it is, and that repayments are directly related to income, so if I have a quiet period then less/no repayments.
Play around with the figures, the fees seem to go up exponentially, for a small loan of £1000 to £1500 it is fairly cheap, but for a loan of double that, the fees are much more than double.
 
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Mr D

Free Member
Feb 12, 2017
28,925
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Stirling
Have used it twice, you set the repayment rate and when you get no sales in a day you don't pay.
Its not the cheapest loan but it is easy to apply for and you can pay it off early.

Its the sort of thing that can take out in August, buy extra stock for Christmas then pay it off in December. Or later.
Or earlier.

Its based on your paypal turnover - so if good sales on own site and ebay then could be quite some money.
You decide how much up to a limit and what repayment percentage per day should be. Think the minimum was 10%.

1st loan took about a year to repay, 2nd loan was set for about 2.5 years.
 
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We set our up for 30% and paid it back within 6 months, there is no benefit to paying it back early, as interest is a fixed amount for the loan and added on at the beginning, with it being 30% of turnover, if things are going well it'll get paid quicker, if things are slow, it'll take longer, great that its not a fixed amount.
 
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Ione

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Jan 13, 2017
74
8
Kazakhstan
Is it available to all countries or to uk only?


In order to be eligible for PayPal Working Capital, you must meet the eligibility requirements outlined in our FAQ, which includes the following reason:

The business’s PayPal account must be based in the United States, United Kingdom or Australia.



If you think you've received this message in error, call us at 1-877-981-2128 Monday to Friday 9am-8pm ET and we’ll be happy to help. Thank you for your interest in PayPal Working Capital.

Reference error code 250
 
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Talay

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Mar 12, 2012
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Surely no-one in their right mind who needs such small finance will got down this route ?

A credit card with a balance transfer or interest free spending or even transfer to bank capability will be far far cheaper and far far more flexible.

Barclaycard is probably the current best, offering all 3 elements above.
 
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Mr D

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Feb 12, 2017
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Surely no-one in their right mind who needs such small finance will got down this route ?

A credit card with a balance transfer or interest free spending or even transfer to bank capability will be far far cheaper and far far more flexible.

Barclaycard is probably the current best, offering all 3 elements above.

By what I have heard there have been many thousands of businesses who have used PayPal working capital.
They are not the only company offering short term finance so presumably there is quite the market for it.
 
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Talay

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Mar 12, 2012
4,171
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By what I have heard there have been many thousands of businesses who have used PayPal working capital.
They are not the only company offering short term finance so presumably there is quite the market for it.

Millions of fools also use payday lenders destroying their credit profiles and paying exorbitant interest.

A simple credit card offers much more for a fraction of the cost, can improve your credit profile and may actually not cost anything at all.

In fact, some credit cards pay you to use them !

How is not using such a more foolish alternative to paying interest ?
 
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Mr D

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Feb 12, 2017
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Millions of fools also use payday lenders destroying their credit profiles and paying exorbitant interest.

A simple credit card offers much more for a fraction of the cost, can improve your credit profile and may actually not cost anything at all.

In fact, some credit cards pay you to use them !

How is not using such a more foolish alternative to paying interest ?

Ever thought that not every credit card will be given on request or a high enough credit limit?

Some people already use their credit card as well. Is additional lending an advantage in say September for those whose main season is just before Christmas?
Would you borrow in September to pay off in December?

Now if someone was to do a credit card based on actual online sales like these lenders have then maybe it could compete directly.
I had been using a major high street bank, had a phone call from one of their business managers once to see how my business was doing. They could not grasp online selling and the costs of online selling. Talked to me about reducing postal costs and reducing online site fees.
Can do both if cutting sales.
 
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T
Millions of fools also use payday lenders destroying their credit profiles and paying exorbitant interest.

A simple credit card offers much more for a fraction of the cost, can improve your credit profile and may actually not cost anything at all.

In fact, some credit cards pay you to use them !

How is not using such a more foolish alternative to paying interest ?
oo many wild assumptions and nativity to even begin to comment
 
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Mr D

Free Member
Feb 12, 2017
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You can get a cash advance and still be cheaper than the example quoted, including fees and interest.

That's if you can get a credit card and sufficient credit.
Not everyone wants a card. Many cannot get a card, others have limits that are far lower than such companies as PayPal and it's competitor lenders are offering.
If I approached my bank about increasing my card limit by 5k I would likely be turned down. I could probably get over 50k from PayPal.
Which is better for any one business? Unknown - I know what is better for my business and you know what is better for yours but neither if us knows what is better for some other business.
 
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