A loan for select businesses with a strong PayPal sales history.
- No credit check
- Get funding in minutes
- Pay one affordable, fixed fee
- Flexible payments that change with your sales
PayPal Working Capital is a business loan of a fixed amount, with a single fixed fee. Automatic repayments are taken as a percentage of your daily sales. There are no periodic interest charges, late fees, pre-payment fees, penalty fees, or any other fees.
The process is easy:
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.
When you apply for PayPal Working Capital, you’ll select the daily repayment percentage, which is the portion of your future sales that will go towards repaying your loan balance.
Your loan balance is repaid automatically as you make sales through PayPal – until your loan amount and fixed fee are paid in full. You can also make additional payments or even pay the loan in full early without penalty.
The daily repayment percentage is the share of your net PayPal sales applied toward repayment of your loan. It's applied only on days when you have sales.
Because your automatic repayments are based on a share of your sales, repayment amounts change along with your business, but there are minimum requirements over time. You are required to pay at least 10% of your total loan amount (loan + the fixed fee) every 90 days so that you make consistent repayment progress regardless of your sales volume.
Here’s an example:
If you borrow $10,000 ($9,000 loan + $1,000 fixed fee), you are required to pay $1,000 every 90 days thereafter, for the first 18 months of the loan.
We check accounts regularly and alert you if you’re getting behind. For most of our customers, normal automated repayments easily cover the minimum and this is never an issue. But if you do get behind, you can make additional payments on the PayPal Working Capital website or process more sales through PayPal to get back on track.
If you do not meet the minimum and your loan goes into Default status, your entire loan balance could become due and limits could be placed on your PayPal account.
If you withdraw, transfer or spend your sales proceeds before automated repayment occurs, PayPal will deduct catch-up payments each time you have a PayPal balance, until the amount due is paid in full. Catch-up payments might also be necessary if PayPal cannot collect an automatic repayment due to a PayPal system disruption.
There is no fee for catch-up payments, but they may result in multiple deductions from your PayPal account at irregular times.
Catch-up payments are collected from your positive PayPal balance only. They will not result in debits of your bank account or other funding sources.
Catch-up payments are meant to be an occasional courtesy, not a standard practice. There is a limit to the share of your repayment that can be paid by catch-up payments. If, at any point after the first 30 days of the loan, uncollected and catch-up payments account for more than 50% of the cumulative balance due (based sales that have occurred), your full balance may become due immediately, at which time, PayPal may debit your funding sources.
We take all loan payments in U.S. Dollars (USD). We will first attempt to deduct each payment from your USD balance because that is the currency of your loan. If you don’t have enough funds in that balance to cover the repayment amount, we may deduct funds from your other currency balance(s), and standard PayPal currency conversion rates and fees would apply, as described in your PayPal User Agreement.
If you make sales in multiple currencies, we’ll determine what each currency’s daily net sales would be in U.S. Dollars (USD), then apply your selected daily repayment percentage to each currency’s balance.
The repayment percentage will be applied to any currency with positive net sales for the day, even if your PayPal Account has a daily net loss across all of your currency balances due to chargebacks.
For the purposes of calculating loan repayment, chargebacks are deducted from sales on the day that they occur. In the unlikely event that net sales for a day are negative, PayPal Working Capital will not refund any loan balance to your PayPal account.
Note that any other providers' loans or merchant cash advances that are disbursed into your PayPal account ARE considered sales for the purposes of PayPal Working Capital loan repayment.
Also, note that net sales include taxes and shipping in cases where they were included in the amount of the PayPal transaction paid by your customer.
Yes. You are welcome to make additional payments or even pay the loan in full early without penalty.
No. Your fixed loan fee is determined at the time of application and won’t change as a result of additional payments or early repayment.
While you have an active PayPal Working Capital loan you should not take other loans or merchant cash advances that are disbursed into your PayPal account. If you do, funds received under these programs will be treated as sales, and your daily repayment percentage will apply to these funds.