Working capital

Generally, working capital is the difference between your business's assets and liabilities. Businesses use working capital to run their business and pay for everyday expenses as well as invest in new projects and initiatives.

PayPal Working Capital is a business loan with one competitively priced fixed fee. You repay the loan and fee with a percentage of your PayPal sales (minimum payment required every 90 days). There are no periodic interest charges, monthly bills, late fees, pre-payment fees, penalty fees, or any other fees.

The process is easy. If approved:

1. Select your loan amount. The maximum loan amount depends on your PayPal account history.

2. Choose the percentage of your PayPal sales that will go toward repaying your loan and fee.

3. Receive the funds in your PayPal account within minutes.

Repay automatically with a percentage of each sale until your balance is paid in full (minimum payment required every 90 days). You can also make manual payments or even pay the loan in full with no early repayment fee, using your PayPal balance or a linked bank account.

To be eligible to apply for PayPal Working Capital, your business, at a minimum, must:

1. Have a PayPal Business or Premier account for 90 days or more

2. Process at least $20,000 in annual PayPal sales if you have a Premier account or at least $15,000 in annual PayPal sales if you have a Business PayPal account.

3. Pay off any existing PayPal Working Capital loan

For most businesses, the authorized Business account holder will need to provide basic personal and business info. However, certain business types will need to provide additional contact details, birth dates, and Social Security numbers of the primary business owners and management. These people won’t have access to the account unless authorized and there won’t be a credit check.

Unlike traditional loans, PayPal Working Capital charges a single, fixed fee that you’ll know before you sign up. No periodic interest, no hidden fees, and no late fees.

Because your automatic repayments get deducted as a percentage of each PayPal sale, the amount you repay each day changes with your sales volume. The more you sell, the more repayment progress you’ll make that day. You’ll make no payments on days without sales, but there’s a minimum repayment requirement every 90 days.​

Depending on the loan terms you choose, you’ll be required to pay at least 5% or 10% of your total loan amount (loan + the fixed fee) every 90 days.​

The 5% minimum applies to loans with an estimated repayment term of 12 months or more, based on your business’ past PayPal sales and other factors. The 10% minimum applies to loans estimated to be repaid within 12 months.​

For most of our customers, regular automatic payments typically cover the minimum. But if you do get behind, you can make additional payments on the PayPal Working Capital website. Payments can be made using your PayPal balance or a linked bank account.​

If you don’t meet the minimum and your loan goes into default, your entire balance could become due and limits could be placed on your PayPal account. Learn more about default in the Borrower Default section of the terms and conditions.

PayPal Working Capital loans are issued one at a time. Your business may be eligible to apply for another loan after paying off your current one—many merchants do. Keep in mind that it can take up to five business days for your final payment to process before you’ll be able to apply for a future loan, which will then be subject to approval.