Failed to use Working Capital again
Hi, I have used Paypal Working Capital twice and at both times I have paid off early. Last time I have borrowed £15500 and when there was £8900 to pay I have paid early so I could re-apply to purchase some stocks for the winter as I sell heating spare parts. I was shocked when I re-applied to see that my application was unsuccessful, my business is rapidly expanding with minimal overheads and risks, my paypal transactions are higher each month and there are no problems of charge backs, refunds etc either. If anything, I was hoping to be offered a higher amount but I have got offered nothing at all and have been rejected cold. I have made some phone calls to find out the reason and eventually they came up with because I have upgraded my account to Paypal Pro and started using Virtual terminal recently, I was offered a service where 20% of virtual payment transactions are kept as reserve for the first 6 months, therefore it is classed as a risky product within Paypal automated system. Paypal Working Capital is also a risky product and when 2 risky products combined the system has rejected my application. This has put me into a very difficult situation as I was hoping to purchase more stocks, instead I have lost my available money too which meant I could not order any parts at all and had to remove some fast selling high profit items from my inventory.
I feel that I should have been warned about this before I have made the payment and before I have started using Virtual Terminal. As a result I have been punished for being a good customer, upgrading to Pro and taking on more Paypal products such as Virtual Terminal. I was expecting this would be the other way around as I have increased my Paypal transactions by putting card payments and website cart to Paypal too. My business advisor from Paypal has told me that my business looked really good, low risk and growing fast and everything would be better.
I would appreciate to hear your thoughts on this matter. Many thanks in advance.