Paypal Loans (Working Capital) Anyone?

[webgeek]

Anyone tried to get a loan (erm some working capital) from Paypal?
https://www.paypal.com/webapps/workingcapital/

Just wondering how it is, difficulty to get, cost, good, bad and ugly.

Thanks in advance!

 

[BusinessTradeCentre]

Yes I did.

You just select the % to pay back on each sale you generate. Mine was 20% and I paid it back within a month.

I borrowed £1,600 and paid back £1,700 so £100 which I thought was good.

The process is very easy, you can have the money in your account after the application..

 

[BusinessTradeCentre]

Just another thought, you also only have to pay back a certain amount within 3 months I think. something like 10%

 

[Raw Rob]

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.

 

[lesliedocherty]

Hey, used it twice now, insanely easy and had money within 5 mins, interest was a bit higher than i'd have liked but if i had went to the bank it wouldn't have been much better and i'd have had to have business plan, jump through hoops and still not get it.

 

[Mr D]

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.

 

[lesliedocherty]

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.

 

[DontAsk]

I paid it back within a month.

I borrowed £1,600 and paid back £1,700 so £100 which I thought was good..

A credit card would have been cheaper.

 

[webgeek]

AMEX, pay it off within the month, no fee, get points for using, etc. True, very low cost option. But it sounds like most people plan on it taking significantly longer than a month to pay back...

 

[robert4u]

Is it available to all countries or to uk only?

 

[Ione]

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

 

[Raza-Associates]

Are the planning to provide this service to other countries?
and If i pay a loan on 1 year the interest Amount (not rate) will remain the same?

 

[Pish_Pash]

Factoid: I was invited to a 'user research/forum' organised by Paypal to discuss Paypal's working Capital....they gave me money, so I think it's a great thing!

 

[Mr D]

Are the planning to provide this service to other countries?
and If i pay a loan on 1 year the interest Amount (not rate) will remain the same?

Quite possibly.
Wasn't so long back it was just available in the US.

 

[DontAsk]

Are the planning to provide this service to other countries?

Why not ask PayPal?

 

[BusinessTradeCentre]

A credit card would have been cheaper.

Yes, but I don't own one... hate the things

 

[Talay]

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.

 

[Mr D]

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.

 

[Talay]

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 ?

 

[Mr D]

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.

 

[Pish_Pash]

But aren't suppliers reluctant to give their best price when you start talking of payment via a credit card? Therefore, if you're not getting their best price, there's a hidden cost when transacting via credit card.

 

[DontAsk]

You can get a cash advance and still be cheaper than the example quoted, including fees and interest.

 

[Mark T Jones]

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

 

[Mr D]

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.