female fashion designer using calculator
Max Cordova
By: max
Read in 15 minutes

PayPal Business Loan And Working Capital Loan Review: 2022

A PayPal business 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 small business loans, you may be considering the different options available. One lender you may not have thought of before is PayPal.

This platform has different commercial lending options you can take advantage of to fund your business.

Let’s take a look at the different options they offer and learn how to get a PayPal Loan.

Apply For A MicroLoan!

 

What Is PayPal?

PayPal is a platform that allows you to link up your bank account to make purchases on different eCommerce platforms and send and receive money.

It also allows you to accept payments, send invoices, request payments, and manage your finances.

Whether you are receiving payments or billing your customers, PayPal helps you fulfill any of your banking needs—even at the international level.

This company is always adding more features to its platform to give its customers more options and ways to use their accounts.

The platform also offers small business loans. Any companies with a PayPal account are eligible to get funding.

They offer two different lending products, the business loan and the working capital loan.

PayPal Business Loans

  • Amount: You can get a PayPal loan for your business from $5,000 to $500,000.
  • Terms: Their repayment terms go from 13 to 52 weeks.
  • Interests: PayPal charges a fixed fee. It’s important to note that they don’t disclose it. Only after applying can you know how much the fee will be.
  • Speed: You can receive your capital in your business checking account within 24 to 48 hours after applying.
  • Other fees: The company won’t charge you late fees, early repayment fees, or processing fees.
  • Credit requirements: The minimum credit score is 550. PayPal also reviews your credit history.

PayPal loans for your business can help you finance in many ways. You can use it them purchase inventory, expand your operations, or even cover unexpected expenses.

basic info on the paypal business loan

Things to keep in mind:

  • The PayPal business loan interest rate can vary depending on several factors, including the amount of money you borrow and the time you take to repay the loan.
  • You repay it through a fixed weekly payment, so you know exactly how much you need to repay each time.
  • The PayPal business credit application process might require you to give a personal guarantee.

#CaminoTip
When it comes to loan costs, there are many concepts you should be aware of, like factor rates, APR and interest rates.

PayPal Business Loan Eligibility And Requirements

The requirements for PayPal business loans include:

  • Have a PayPal account
  • Have been in business for at least 9 months
  • Be based in the US
  • Have an annual revenue of $42,000
  • Have no active personal bankruptcies

If you meet all of the above requirements, you’ll need to complete the application on their website.

PayPal Business Loan Application

If you’re thinking of applying for a PayPal business loan, there are a few things you’ll need to know first.

To determine the business’s eligibility, 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 business credit score and ensure your business is in good standing.

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

How To Apply For A PayPal Businesses Loan

Applying for PayPal loans isn’t too different from another type of loan. Just follow these steps:

  1. First, you must fill out a questionnaire regarding your business eligibility. You can also call a PayPal Business Funding Expert to walk you through this step. 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 PayPal approves the specific loan amount and terms, you can electronically sign a contract.
  4. Finally, the lender transfers funds 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.

Pros And Cons Of Paypal Loans For Businesses

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

Advantages:

  • You can receive your PayPal business loan as fast as the next business day.
  • They don’t require you to put up collateral.
  • You can repay the loan in advance without any repayment fees.

Disadvantages:

  • You need to have an active business PayPal account. If you don’t, you cannot apply.
  • Smaller businesses might not meet minimum requirements.
  • Some industries are ineligible for a loan, such as attorneys, artists, human rights organizations, etc.
  • Smaller brick-and-mortar businesses, like mom and pop businesses that need financing, might not receive approval unless they process payments with PayPal.

Should You Get A PayPal Business Loan?

The PayPal Business Loan is right for you if:

  • You need capital to grow your business and have a PayPal account.
  • If you don’t mind making weekly payments.
  • Your business is big enough to meet the annual revenue requirement.

PayPal Working Capital Loans

  • Amount: You can get PayPal working capital loans for as little as $1,000 and up to $125,000.
  • Terms: 9 to 12 months. They require you to make a minimum payment at least every 90 days.
  • Interests: The working capital loan doesn’t charge interests but a fixed fee with each payment.
  • Speed: 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.
  • Other fees: They don’t charge any additional fees.
  • Credit requirements: There doesn’t seem to be a minimum credit score requirement.

PayPal working capital loans can cover expenses such as payroll or cash flow problems.

basic info on the paypal working capital loan

Things to keep in mind:

  • A PayPal Working Capital Loan is very similar to a Merchant Cash Advance.
  • The loan fee depends on your business’s PayPal account history, the repayment terms, and the loan amount.
  • They will deduct payments automatically from your PayPal business account. The more profit your business makes, the quicker you can repay the loan.
  • If you cannot make a sale, they won’t require that your business make a payment for that day. However, your business must be able to pay, roughly every 90 days, a minimum of 5% or 10%.

Paypal Working Capital Requirements

The loan application process doesn’t require a credit check. Unlike other small business loans, you won’t have to worry about your credit score for taking out this loan.

They also don’t ask for any documentation.

  • Have a PayPal account (either a business or premium account)
  • Be a PayPal user in good standing for at least 3 months
  • Process at least $15,000 per year through a PayPal account or $20,000 through a PayPal Premier account

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 number

How To Apply For PayPal Working Capital Loan

To get PayPal’s working capital loans, you must:

  1. Select a loan amount
  2. Choose the PayPal sales percentage to go towards your loan
  3. In a few minutes, they will notify you if they approve your business. It is easy and fast.

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

Pros And Cons Of The PayPal Working Capital Loan

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

Advantages:

  • You can receive your PayPal working capital loan as fast as minutes.
  • They don’t require you to put up collateral.
  • You can repay the loan in advance without any repayment fees.

Disadvantages:

  • 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.

Should You Get A PayPal Working Capital Loan?

The PayPal working capital loan is right for you if:

  • You have a PayPal business account.
  • You make significant sales. Because PayPal doesn’t check your credit score, you might not get the loan amount desired if you don’t have great PayPal sales.

PayPal Business Loan vs. Working Capital Loan

Paypal business loans and working capital are two financing options for small businesses. Both can provide much-needed financial assistance, but there are some key differences between the two:

  • Paypal business loans are best for businesses that need a lump sum of money for a specific purpose, such as expanding their operations or equipment financing.
  • On the other hand, PayPal Working capital loans are best for businesses that need ongoing access to funds to cover day-to-day expenses.
  • Business loans typically have shorter repayment terms than working capital, which can give you more flexibility in how you use the funds.
  • However, working capital may be a better option if you need longer to repay the funds.

PayPal Loan Customer Reviews

There are a lot of positive PayPal Loan reviews out there.

People seem to like the fact that they can get a loan from the comfort of their own home without having to go through a bank or credit union. The process is quick and easy, and the money can be in their account within minutes or days.

The interest rates on PayPal Loans are generally very competitive, and people seem happy with the product overall.

That said, many applicants (specifically of the PayPal working capital loan) complain that they were not approved and didn’t receive an explanation as to why. Others complain about PayPal’s customer service.

Camino Financial: The Best Alternative To A PayPal Loan

If PayPal business loans aren’t what you need, microloans might be the better option.

Camino Financial is an excellent way to get funding for your business.

Our microloans can give you the capital you need. We offer an online application that is easy and paperless.

  • Amount: $5,100 to $35,000
  • Terms: 24 to 36 months
  • Interests: 36.85% to 63.20% APR
  • Speed: you can get the capital in 2 to 10 days
  • Other fees: no prepayment penalties or fees
  • Credit requirements: Applicants with no previous credit history may apply.

You can use our small business financing to pay for most commercial expenses, like equipment, salaries, investments, etc. You can also use them as working capital, debt consolidation loans, and more.

We support you in your rising business, and we can also give you loans with fixed rates and help you see if you are eligible right away.

basic info on the Camino Financial microloan

Learn more about microloan pros and cons

Camino Financial Microloan Requirements

To receive approval, you must:

  • Have been in business for 9+ months
  • Be current with outstanding debt
  • Earn $30,000 in annual gross sales
  • Own at least 50% of the business
  • Have an SSN or ITIN

Our loans have very few business loan requirements because we want to help you succeed.

With Camino Financial, you can expect results right away at great rates. Our motto is “No business left behind.”

Apply now!

Comparison: PayPal Loans For Businesses And Other Lending Products

Are you unsure if PayPal loans online are for you? There are many other alternatives.

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

Type of FundingAccept 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 Microloan✔️✔️Monthly31.55% to 54.90%$5,100 to $35,000
Bank loansMonthly3% to 13%$50,000 to $1,000,000
Merchant Cash AdvanceDepends on lenderDepends on lenderDaily40% to 150%$2,500 to $250,000
Lines of creditMonthly7% to 25%$10,000 to $100,000

Have you realized that Camino Financial is your best option?

Apply for a Camino Financial Loan

 

FAQs

Does PayPal give business loans?

Yes, PayPal has various business loan options and is always looking to help businesses grow.

Whether you need a small business loan to get started or a larger loan to expand your operations, PayPal can help.

Are PayPal business loans any good?

Some businesses may find a PayPal business loan a good option, as it can provide fast access to funding and flexible repayment terms.

This can be helpful if you need money for an unexpected expense or to take advantage of a business opportunity.

Is a PayPal business loan easy to get?

The answer to this question is yes, PayPal business loans are relatively easy to get, as long as you are eligible.

There are a few requirements that you must meet to qualify for a PayPal business loan, but they are all relatively simple and easy to fulfill.

An important consideration is that you need to have a PayPal business account to receive the loan.

How to apply for a PayPal business loan?

You can apply for a PayPal business loan on the PayPal website.

To be eligible for a PayPal business loan, you must be a business owner with a PayPal account in good standing. You must also have been in operation for at least 12 months and have annual revenue of at least $100,000.

How much can you borrow with PayPal’s working capital?

PayPal Working Capital offers business owners up to $250,000 in credit. The amount you can borrow depends on the health and performance of your business, with a maximum borrowing amount of $250,000.

What credit score do you need for a PayPal loan?

You need no set credit score to qualify for a PayPal working capital loan. On the other hand, the minimum credit score for PayPal business loans seems to be 550.

The company will also consider your credit history and financial stability when considering your application.

Does PayPal report payments to credit bureaus?

It seems like the PayPal business loan does report payments to credit bureaus. To be more specific, to Equifax, Experian, and Transunion.

This can help build your business credit and improve your credit score.

That said, it looks like the PayPal working capital loan does not report payments.

Does PayPal offer personal loans or student loans?

No. Currently, there are no PayPal student loans or personal loans.

How do you qualify for a PayPal loan?

To qualify for a PayPal loan, you must have an established PayPal account in good standing, with a verified email address and a confirmed bank account. You must also meet the criteria for the specific loan you want to apply for.

Please review the requirements above to learn more about how to qualify for a PayPal loan.

How does a PayPal business loan work?

PayPal’s business loans help small businesses grow and expand their operations.

Loans are available in amounts depending on the loan product you choose: PayPal business loan or PayPal working capital loan.

You apply and receive approval through PayPal’s website.

You can use these small business loans for various purposes, including working capital, inventory or equipment purchases, business expansion, or even debt consolidation.

How can I get a PayPal business account?

You can sign up for a PayPal Business account by following these steps:

  1. Go to the PayPal website and click the “Sign Up” link.
  2. Select “Business Account” from the options provided.
  3. Enter your business information, including your email address, business name, and password.
  4. Click on the “Create Account” button.
  5. Follow the instructions provided to complete the sign-up process.

 

Check if you
qualify for a loan

LEARN MORE