PayPal Working Capital (PPWC) provides short-term loans to small businesses that receive payments through PayPal. PPWC takes a percentage of your future PayPal sales until your loans are paid back. We compiled reviews from our own website plus user reviews from around the web and determined that PayPal Working Capital has a mix of positive and negative ratings. We also cover the fees associated with taking out a loan.
While people typically think of PayPal as an online payments system, in this article we will be focusing on PayPal Working Capital only. To see our review of PayPal payments, go here.
Want to know the top lenders for small business? Read our Paypal Working Capital alternatives guide.
Summary of Paypal Working Capital User Reviews
What PayPal Working Capital does well:
Customers who gave PPWC positive feedback were impressed with the fast loan processing and relatively lenient loan requirements. According to previous loan applicants, PPWC had no credit checks and instead, used the applicant’s PayPal sales history as proof of good financial status.
What PayPal Working Capital does not do well:
Customers who gave PPWC critical feedback complained that when applying for a loan, the conditions are vague and PPWC’s customer service representatives fail to clarify terms and conditions. Some reviews also mentioned that PPWC’s annual percentage rate is higher compared to other loan providers.
Most Helpful Positive User Review
“PayPal working capital is a ray of light in an otherwise black hole of small business funding. I wish I had taken the offers seriously a lot earlier. If you qualify for a PayPal loan I would highly encourage you to take it.
I applied for my first loan and was approved in a few minutes for $8k. I was charged a loan fee of $442. I chose the 10% repay option. I don’t know if at the time I even knew you could slide the scale for more $ etc. My PayPal sales for 1 year prior to that date were $287k. These are real figures using the report option in the PayPal business section. I paid the loan off in 122 days. I made a few manual payments over the course of that time which totaled 13% of my overall loan balance…”
— Kaiser
Most Helpful Negative User Review
“PayPal working Capital is another way to rip people off their money. Be really careful and read the fine prints because if you didn’t pay your loan in 90 days they will add 10% of the entire loan and you end up with more debt.
If you have a 3000 loan and you not pay back 3000 in 90 days and for example you paid to say 2000 before 90 days when 90 days pass you end up with 2300 left to pay for the next 90 days and so on until they squeeze you last drop and left you dry. I have that experience and I never ever apply for a loan again. It really suck but we learn from our mistakes.”
— George
PayPal Working Capital Pricing
PayPal charges a fixed fee determined by the amount of your loan, the repayment percentage you choose, and your business’ PayPal sales history. Companies can qualify for loans equal to 4-5% of their annual PayPal sales. PPWC provides these loans through their partner WebBank, which has a cap borrowing amount of $85,000.
| PayPal Working Capital | |
|---|---|
| Loan Amount | 4% to 5% percent of company’s annual PayPal sales |
| APR | 15% to 30% (depending on loan amount) |
| Deduction from PayPal Sales | 10% to 30% of daily PayPal sales, as long as you pay back 10% of the loan back every 90 days. |
| Application Time | 5 minutes |
| Funding Time | Less than 1 minute |
| Credit Checks? | No |
You can choose how much PPWC can deduct from your daily PayPal sales, and you don’t need to pay them on days when your company has zero sales.
When applying for a loan, you can choose a repayment percentage of 10-30% of your daily PayPal sales. If you’re a new business and you need funds to grow your company, you should go for a 10% repayment rate. The only stipulation is that you need to pay back 10% of the loan within 90 days.
If your company is already stable, and you want to take advantage of the lower one-time fixed fee, the 30% repayment percentage is more viable for your situation.
PayPal Working Capital Features
- Flexible payments
- One fixed fee
- No credit check
- Funding in minutes
Useful Paypal Working Capital Resources
PayPal Working Capital & Alternative – The Ultimate Guide – Read our ultimate guide to PayPal Working Capital and see if it’s the right fit for your small business. While you’re there, see how they stack up against their top competitors.
Bad Credit Business Loans: Where to Get Bad Credit Business Financing in 2017 – In this article, we review and compare OnDeck, Fundbox, and RapidAdvance as the three best options for bad credit business loans.
Kabbage vs OnDeck Capital: Who Offers the Best Short Term Business Loans – In this article, we review the rates, terms, and qualifications of the two best short term business lenders: Kabbage vs OnDeck Capital.
Square Capital Loans & 4 Top Alternatives for 2018 – Read about Square Capital’s working capital loan for small businesses and popular alternatives such as business line of credit, short term loans, and invoice financing.
Paypal Working Capital Video Overview
This video shows how Paypal Working Capital works.
Top Paypal Working Capital Alternatives
Not sure if PayPal Working Capital is the right fit for you? Read our short-term loan comparison guide or check out one of these three PayPal Working Capital competitors.
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Kaiser
Review SourceOrganic
PayPal working capital is a ray of light in an otherwise black hole of small business funding. I wish I had taken the offers seriously a lot earlier. If you qualify for a PayPal loan I would highly encourage you to take it.
Unlike other reviewers I am going to post actual numbers and will continue to do so. I really wish others would do the same thing so that more of us can be better informed. There is strength in data so please try to post your experiences so that I can assess the viability of future funding through PayPal etc.
My personal credit was decimated in the depression. I can’t get qualified for much more than basic credit cards or high interest car loans. My credit score is low due to bogus tax liens (California) and a BK from 2010 that an idiot attorney filed as personal instead of corporate. I have a 100% on time payment history but my credit rating still sits at around 600. For me getting a loan is and probably will continue to be impossible. I was extremely affluent until my business collapsed…the credit limit on my AMEX alone was $1m. Now I can’t qualify for a Best Buy card. I am by no means a pity story. I rebuilt myself over the past 7 years; but to do so had to expand into multiple smaller businesses. I use PayPal for one of these online businesses. So with that background here is my experience to date:
I applied for my first loan and was approved in a few minutes for $8k. I was charged a loan fee of $442. I chose the 10% repay option. I don’t know if at the time I even knew you could slide the scale for more $ etc. My PayPal sales for 1 year prior to that date were $287k. These are real figures using the report option in the PayPal business section. I paid the loan off in 122 days. I made a few manual payments over the course of that time which totaled 13% of my overall loan balance.
I applied for and was granted a second working capital loan a few days after the first one cleared. It takes a few days for payments to process through the system to close the loan. My second loan was approved at $18k with a 30% repay. The fees charged were $967. Using the PayPal reports my sales for 1 year prior to that date were $253k. I just paid the loan off in 100 days and am currently waiting for it to clear to reapply. I paid 17% of the balance off using manual payments. Usually I send manual payments when I just didn’t need the money sitting in my PayPal account.
In this past 12 months my PayPal sales have been $239k. According to the metric listed in the FAQ my “maximum” loan amount could come back as high as $60k. But as noted above they actually approved me for more money on my second loan, even though my sales actually slowed a bit. This of course makes sense as the lender wants to build a rapport. I’m keeping my fingers crossed for a larger loan at a decent rate. I used the first two loans well, but the amounts are insignificant compared to my natural inventory costs. With a 40-60k loan I can definitely improve sales through the end of the year as the holidays are our “busy time.”
I will keep the community informed.
All that being said PayPal working capital has been a blessing to us. Not only does the money help with inventory, it’s nice to know without credit our business acumen can “speak for itself” so to speak. I have found the interest rates to be justifiable. All these apr calculations are rhetoric, I don’t know of any other product that works as quickly and easily as working capital. They deserve the interest…they are filling in an incredible gap left by our weak banking system that has caused a lot of business to stagnate or even fail. As my other businesses have improved, I probably would have pulled out of this particular sector completely because it only encompasses 5-10% of our overall portfolio. I could very well move funds into other ventures and make up the difference. But PayPal has made me stay involved and as a result is directly responsible for two Americans having jobs. Our experience has been wonderful…I wish you all the same success.
Review SourceOrganic
George
Review SourceOrganic
PayPal working Capital is another way to rip people off their money. Be really careful and read the fine prints because if you didn’t pay your loan in 90 days they will add 10% of the entire loan and you end up with more debt.
If you have a 3000 loan and you not pay back 3000 in 90 days and for example you paid to say 2000 before 90 days when 90 days pass you end up with 2300 left to pay for the next 90 days and so on until they squeeze you last drop and left you dry. I have that experience and I never ever apply for a loan again. It really suck but we learn from our mistakes.
Review SourceOrganic
Joanne
This above statement/review by George is completely false. We just completed our 3rd working capital loan and are extremely pleased with the ease of funding and repayment. You do NOT have to pay the balance back within 90 days. They only minimum requirement Paypal has is that you pay at least 10% of your initial loan amount (loan + fee) every 90 days, for the first 540 days. It’s clearly written in their FAQ, on your dashboard as a reminder and in their fine print. If you had money ADDED to your amount owing, you must have defaulted on their measly minimum payment required.
Emrah
Review SourceOrganic
I just noticed on my PayPal account that I am eligible for this working capital. I could really do with some capital injection to expand my product range and increase inventory quicker.
I plan to pay the loan off very quickly and then apply for another one for my next order and so on. Once paying off the first loan, does paypal increase the amount you can borrow and lend it instantly like it does with the first one?
Right now I’m offered a maximum, but the maximum comes with a 11% interest fee where as if I borrow in middle range of what’s available to me with a %30 pay back per sale, I only have to pay %5 set fee which I think is very good, and I think I can pay the whole loan back within a couple of weeks. But I want to know if I do this, will PayPal lend to me instantly again and does my maximum amount increase?
Last question. Do PayPal increase the set fee % on future loans or is it still pretty awesome rate like my current 1st time offer of only %5 set fee?
Thanks!
Review SourceOrganic
Ian Atkins
Hi Emrah,
PayPal bases much of it’s lending decision on the your transactions with them. We don’t have exact transaction thresholds as the correlate to borrowing, but you should expect the borrowing limits to stay basically inline with your volume of PayPal transactions. Regarding whether PayPal will immediately lend to you again after paying off you’re initial financing, that’s or the fees you may be charged, that’s difficult to say with certainty.
Best,
Ian
Simon
Review SourceOrganic
APRs are through the roof, and customer service won’t get back to me. Going to use Bitbond instead.
Review SourceOrganic
Kun Kim
Review SourceOrganic
Paypal repayment process is premature and sucking
Review SourceOrganic