PayPal Working Capital lets you repay your loan when you get paid.
- Pay when you get paid
- Get funding in minutes
- Pay one affordable, fixed fee
- No credit check
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.
Your loan is repaid automatically as you make sales on PayPal. When you apply, you choose a percentage that will be deducted from your sales each day your business has sales through PayPal — until your loan balance is paid in full. For example, if you choose a daily repayment percentage of 15%, PayPal will deduct 15% of your daily sales from your PayPal account the following day.
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 between your customer and your business.
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. 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.