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?

A PayPal loan can be great if you need financing for your business, but is it the best option for you?

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 a PayPal loan is also an option!

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 learning how to use PayPal for business payments will help you obtain financing solutions for your small business. Remember, PayPal only offers this financing option to members with an existing 

Let’s take a look at the options PayPal offers, and learn how to get a PayPal Loan:

someone using PayPal app on their cellphone

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

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

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

About PayPal Personal Loan and PayPal Student Loans:

Currently, there are no offers from PayPal personal loans neither student loans. For businesses, they have two loan options:

Let’s review these PayPal loan requirements in depth.

an illustrated icon representing a dollar bill

PayPal Business Loan

The PayPal Business Loan is right for you if you need capital to grow your business and you have a PayPal account. 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.

illustration explaining the terms of a PayPal business loan

How do you qualify for a PayPal business loan?

PayPal will take an in-depth look at your business to ensure you’re the right candidate for one of its loans. Your business should be active for at least nine months and have generated $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.

Get Approved For A Loan Today

How to Apply for PayPal Business Loans

Getting a business PayPal loan may be unfamiliar territory, but the process of applying for this loan isn’t too different from 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 to take your payments 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:

The PayPal loan application process 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.

an illustration of a hand holding a cellphone

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.

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

They don’t charge any additional fees. This 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. 

requirements for a paypal working capital loan

Paypal Working Capital Requirements

The loan application process 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 these PayPal business 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 notify you 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. If 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%.

You may be interested in The Differences Between a Loan with a Mortgage.

a picture of a business loan application form

Are PayPal loans good? Pros and Cons

Like everything in life, this kind of PayPal business loan has good and bad things, so you need to ensure it’s the right option for you.


  • You can receive your PayPal loan instant, 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.
  • You can’t ask for a PayPal personal loan.

Read about: Bad credit loans guaranteed approval 


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 paymentAnnual interest rateLoan amount
PayPal Business Loan❓ unclearWeekly Not disclosed$5,000 to $500,000
PayPal Working Capital Loan✔️Percentage per sale Not disclosed$1,000 to $125,000
Camino Financial✔️✔️Monthly12% to 25%$5,000 to $400,000
Merchant Cash AdvanceDepends on lenderDepends on lenderDaily40% to 150%$2,500 to $250,000
Lines of creditMonthly7% 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 if you seek small business loans or small business financing.

an illustration showing camino financial loan terms, an alternative for a PayPal business loans

We are equipped to serve you in your rising business, and we are also able to give you loans with fixed rates and help you see if you are eligible right away.

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

Apply For A Business Loan!

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