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 needs—even at the international level.
It is a wonderful platform that allows you to link up your bank account so you can 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 between $5,000 to $500,000.
How does a PayPal loan work?
The first key question is: Who Can Get a PayPal Small Business 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.
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 much is a PayPal Loan? PayPal charges a fixed fee that is based on the amount of your loan, your PayPal sales history and the repayment percentage that you selected. There are no additional fees or periodic interest. The higher the repayment percentage, the lower the overall cost of your 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.
- 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 human. 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.
- 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.
- 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.
- 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.
Are PayPal loans good? Pros and Cons of a PayPal Loan
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 in just a few minutes after you’ve been approved.
- PayPal doesn’t check your credit rating. Instead, they check other things to approve you (like your sales).
- They don’t require you to put up collateral.
- The payment of your loan is taken directly from every sale. But you won’t drown in debt during months that sales are low because you only have to pay a minimum of 5% every ninety days.
- 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.
- Also, if you don’t have a long history with PayPal, then 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. To see the other industries that are not eligible, please take a look here (#7).
What is a PayPal Working Capital Loan & How to Get One
PayPal has different business loans they offer.
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.
To get one of these loans, you must select a loan amount, then choose the PayPal sales percentage that will 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:
- 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. Although your business must be able to pay, roughly, every 90 days.
- 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.
- 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 only base your loan eligibility on your PayPal sales, and they take a percentage of it.
- 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.
An 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.
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.