Money and financial planning, young hispanic self-employed woman checking bills and doing budget with calculator, computer and papers in fashion design studio. concept: paypal loan
Max Cordova
By: max
Read in 11 minutes

Getting a PayPal Loan — Is it a Good Option?

If you are looking to get a loan for your business, you may be considering the different options available. In addition to the various bank loans available, getting an online loan is also an option. As a matter of fact, there is even a PayPal loan!

Paypal loans can be a great option if you need financing for your business, but is it the best option for you? 

Can I get a PayPal loan?
Online loans and PayPal loans are accessible to anyone or any business looking to get extra cash to spur the growth of their business. But PayPal only offers this financing option to members with an existing account. 

Let’s take a look at the options PayPal offers. 

PayPal: the company that allows you to send and receive payments

Paypal is an excellent website for businesses or personal use. Whether you are receiving payments or billing your customers, PayPal helps you fulfill any of your banking needseven at the international level. It is an amazing platform that allows you to link up your bank account to have a seamless transactional experience.

PayPal is always adding more features to its platform to give its customers more options and ways to use their accounts. And now, PayPal offers loans to business owners. Any small business (that has a PayPal account) is eligible to get funding. 

They have two loan options:

  • Business Loan
  • Working Capital Loan

Let’s review these loan options in depth.

Stack of dollars. Paper bills or money. Icon in a flat style with shadow. Vector, illustration EPS10. concept: paypal loan

PayPal Business Loan

The PayPal Business Loan is right for you if your business has a PayPal account and you need capital to grow your business. You can get a PayPal loan for your business from $5,000 to $500,000. The company won’t charge you late fees, early repayment fees, nor processing fees. And you can’t receive your capital as fast as the next business day.

Their repayment terms go from 13 to 52 weeks.

PayPal charges a fixed fee based on the amount of your loan, your PayPal sales history, and the repayment percentage you selected. There are no additional fees or periodic interest. The higher the repayment percentage, the lower the overall cost of your loan.

PayPal loan, camino financial

How do you qualify for a PayPal loan?

PayPal will take an in-depth look at your business to make sure you’re the right candidate for one of its loans. Your business should be active for at least nine months and have generated at least $42,000 in total annual revenue. Also, your business should not have any active bankruptcies.

They also run a credit check to make sure your business is in good standing.

Though PayPal has operations in many countries, those applying through their U.S. PayPal account must have their business located in the United States and have an active record with the Secretary of State. 

PayPal needs to make sure these requirements are in order before considering you as a candidate for a loan.

How to Apply for PayPal Business Loans

Getting a business loan from PayPal may be unfamiliar territory, but the process of applying for this loan isn’t too different than that of another type of loan. 

  1. First, you will need to fill out a questionnaire regarding your business eligibility. You can also call a PayPal Business Funding Expert to be walked through this step with a representative. This should take you about five to ten minutes. The reason why PayPal does this is to make sure your business is in good standing.
  2. Once you complete this section, the next step is to tell PayPal how much you need. Here, you will be able to customize your loan amount and loan duration. 
  3. After the specific loan amount and loan terms are approved, you will be able to electronically sign a contract and then receive bank instructions so your payments can be taken from your account weekly. 
  4. Finally, the loan amount you requested will be deposited into your PayPal account. Here, you can withdraw the loan amount to your business bank account, or it can stay in the PayPal Business account. 

Things to keep in mind:

PayPal requires you to put up a personal guarantee. This means that if you can’t repay, the lender can liquidate some personal assets to repay the loan.

PayPal loan

PayPal Working Capital Loan

The PayPal Working Capital Loan is a different way that PayPal can help you and your business get funding right away. Working capital loans are used to cover expenses such as payroll or cash flow problems. PayPal’s working capital loans are for $1,000 and up to $125,000.

Their fee depends on your business’s PayPal account history, the repayment terms, and the loan amount.

They don’t charge any additional fees.

This Paypal loan is a quick and easy transaction. Within minutes, you can receive your loan so you and your business can get right back to work.  

Knowing what you are paying every time is essential, especially for positive cash-flowing businesses like yours. A PayPal Working Capital Loan has fixed payments. You can expect to pay the same amount each time. 

PayPal loan, camino financial

How do you qualify for a Working Capital PayPal loan?

There’s no credit check required. Unlike other loans, you won’t have to worry about your credit score being impacted by taking out this loan. They also don’t ask for any documentation.

PayPal only bases your loan eligibility on your PayPal sales, and they take a percentage of it.

When applying, you might also need the following information for all the primary owners of the business and business management:

  • contact details
  • birth dates
  • Social Security numbers

How to Apply for PayPal Working Capital Loan

To get one of these loans, you must select a loan amount and then choose the PayPal sales percentage to go towards your loan. In a few minutes, you will be notified if your business has been approved. It is easy and fast. 

Here are a few of the benefits and how you can get a Working Capital loan from PayPal.

Things to keep in mind:

Because PayPal doesn’t check your credit score, you could have a perfect credit score, but if you don’t have great sales, you might not get the loan amount desired (or maybe nothing at all).

Payments will be deducted automatically from your PayPal account. The more profit your business makes, the quicker you can repay the loan back. In case you’re not able to make a sale, your business won’t be required to make a payment for that day. However, your business must be able to pay, roughly, every 90 days a minimum of 5% or 10%.

Business loan application form on desk in bank. Concept: paypal loan

Are PayPal loans good? Pros and Cons

Like everything in life, a PayPal loan has good and bad things, so you need to make sure it’s the right option for you.


  • You can receive your PayPal loan one day after you’ve been approved (for the business loan) or even as fast as minutes (for the working capital loan).
  • They don’t require you to put up collateral.
  • You can repay the loan in advance without any repayment fees.


  • You need to have an active business PayPal account. If you don’t, you cannot apply.
  • If you fall behind with your payments, PayPal can place limits on your account. This will hamper your business and can cause trouble for you short and long term. 
  • If you don’t have a long history with PayPal, you might not get the total amount you need for your business. 
  • Some industries are ineligible for a loan, for example, attorneys, artists, human rights organizations, and more. 

paypal loan: paypal

PayPal Loans vs. Other Alternatives

Are you unsure if a PayPal loan is for you? There are many other alternatives.

Check this comparative table to help you find what loan works best for you:

💰 Accept ITIN? No credit history accepted? Type of payment Annual interest rate Loan amount
PayPal Business Loan ❓ unclear Weekly  Not disclosed $5,000 to $500,000
PayPal Working Capital Loan ✔️ Percentage per sale  Not disclosed $1,000 to $125,000
Camino Financial ✔️ ✔️ Monthly 12% to 25% $5,000 to $400,000
Merchant Cash Advance Depends on lender Depends on lender Daily 40% to 150% $2,500 to $250,000
Lines of credit Monthly 7% to 25% $10,000 to $100,000

The Best Alternative to a PayPal Loan

Online loans, like a PayPal loan, are an excellent way to get funding for your business. If a PayPal loan isn’t what you are looking for, then Camino Financial might be the better option for you. 

PayPal loan, camino financial

We are equipped to serve you, and your growing business better needs one personal level that PayPal can’t offer. We’re also able to give you loans with fixed rates and can help you see if you are eligible right away. 

Our motto is “No business left behind,” and that’s why our loans have very few requirements. With Camino Financial, you can expect results right away at great rates. 

Get a FREE business loan quote!



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