Working Capital Tour

Pay when you have sales

A different kind of business loan.

PayPal Working Capital is offered exclusively to select PayPal business customers based on your PayPal sales history. After approval, loan funds are deposited to your PayPal account within minutes and available to use for your business.
  • Repayment is simply a share of your PayPal sales that you choose. Payments happen automatically when you have sales.
  • On days when you don't make sales, you pay nothing for that day*.
  • When your balance is paid in full, you can re-apply for another loan.
*Minimum payment required every 90 days. Read the Repayments section of our FAQs for details.

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Next: Pricing

Customized for your business

Totally transparent cost that you choose
  • Loan amount: You choose your loan amount. Maximum Loan Amounts vary based on your sales history. Read the Overview section of our FAQs for details.
  • Repayment Percentage: You choose the percentage of your future PayPal sales to be taken for repayment. The higher your daily repayment percentage, the sooner you’re likely to repay – and the lower your fee.
  • Loan fee: There’s just one fixed fee, determined by your loan amount, repayment percentage, and PayPal sales history. There are no other fees, and there are never any penalty fees.
  • Total amount to be repaid: A share of your sales will be collected automatically until you’ve repaid the loan amount plus the fee.

    If you make sales in multiple currencies, your loan repayments will be calculated by applying your selected repayment percentage to each currency’s daily total sales.

If you want to make additional payments or pay your loan balance in full early, you can do so at any time without penalty.

Sample repayment and pricing options
Example: Business with $100,000 in annual PayPal sales, seeking a loan of $8,000. Loan Amount and Loan Fees vary based on your sales history.
Loan amount

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Next: On Your Side

Policies that are simple and on your side

Keep processing your sales through PayPal
  • You must continue to process your sales through PayPal (like you already do) since that’s how repayment happens.
Don’t miss or avoid repayments
  • Because automated repayment occurs the day AFTER your corresponding sales, you should maintain a PayPal balance greater than the share of sales you owe as repayment each day.
  • If you withdraw, transfer or spend your sales proceeds before we can take your automatic repayment, we’ll take catch-up payments until the account is current.
  • There are no fees for catch-up payments, but these payments may result in multiple amounts being deducted from your PayPal account at irregular times.
  • Catch-up payments are a courtesy only. After the first 30 days of the loan, uncollected and catch-up payments may not account for more than 50% of the cumulative balance due (which is based only on sales that have occurred).
Meet the minimum repayment requirement every 90 days
  • 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.
  • Most customers easily meet this requirement with their automated repayments. We check accounts regularly so we can alert you if it looks like you’re getting behind.
If you do not meet the requirements in the above policies and your loan goes into Default status, your entire loan balance could become due and limits could be placed on your PayPal account. For more details about these policies, read the Repayments section of our FAQs.

Example for a merchant who chose a daily repayment percentage of 15%.

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Next: Compare

The PayPal difference

PayPal Working Capital is different from other kinds of lending — here's how.

PayPal already knows your business, so applying is easy:
  • No long forms to complete
  • No personal guarantee (PG)
  • No credit check, so using PayPal Working Capital won’t affect your personal or your business credit scores
Source: PayPal competitive analysis, based on common industry practices
*Minimum payment required every 90 days. Read the Repayments section of our FAQs for details.

Got enough info to get started?
Apply now

Next: Get My Offer

How do I apply?

There are just a few simple steps to get funds in your PayPal account.
Log in to get started
Confirm your info
Confirm your information so the lender can determine your eligibility, and if approved, show you your loan offer.
Choose your terms
Choose your loan amount and daily repayment percentage, then review and agree to the terms of the loan.
Get your funds
Upon acceptance, your PayPal Working Capital business loan is securely transferred from the lender into your PayPal account automatically.
Need more information?
View our FAQs
Overview
What is PayPal Working Capital?
PayPal Working Capital gives businesses access to the capital they need, but it's faster and easier than traditional loans. It's available to select businesses that already process payments through PayPal. If your business qualifies, the lender reviews your PayPal cash flow history to customize a special offer.
How does it work?

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:

  • Select your loan amount. Maximum Loan Amounts vary based on your sales history.
  • Choose the percentage of your future PayPal sales that you want to go toward repayment of the loan amount and the loan fee.
  • Get the loan amount deposited to your PayPal account within minutes to use for your business.
  • Start making repayments as a percentage of your daily sales until your balance is paid in full. You can also make additional payments or even pay the loan in full early without penalty.
How is my maximum loan amount determined?
The lender reviews your PayPal sales history to determine your loan amount. In most cases, if approved, your maximum loan amount will be up to 15% of the sales your business processed through PayPal in the past 12 months, up to $85,000.
Can I get more than one PayPal Working Capital loan at a time?
Working Capital loans are issued one at a time to help keep repayment simple and affordable for you. You can re-apply after paying off one loan to get another one – many merchants do. But keep in mind that it can take up to 3 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.
Will my credit score be affected if I apply for or use PayPal Working Capital?
No. The lender determines your eligibility based on your business's PayPal sales history, not your business or personal credit score. Applying for or using this loan won't impact either credit score.
Do I need to change anything about how my sales are processed through PayPal?
No, you don’t need to change anything. To receive PayPal Working Capital, you must agree to continue to process your business's payments through your current PayPal account until your loan amount and fee are paid in full. You must also agree not to direct your payment volume away from PayPal.
Fees
What fees do I have to pay with PayPal Working Capital?

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.

Do I pay periodic interest on the loan?
No. You're charged a single, fixed fee on your loan, not a traditional periodic interest rate.
How is my fee calculated?
The fee is based on your business's PayPal sales history, the loan amount you apply for, and the daily repayment deduction percentage you select.
How does the daily repayment percentage affect the loan fee?
The higher your daily repayment percentage, the lower your fixed loan fee. A lower repayment percentage results in a higher fee — but more flexibility for your business, since you’ll get to keep a larger share of your PayPal sales.
Repayment
How do I repay PayPal Working Capital?

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.

What is the daily repayment percentage?

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.

Can I change the daily repayment percentage after I receive the loan?
No. The daily repayment percentage you choose when you sign up stays in effect until your balance is paid in full, so choose it carefully. However, since your repayment amount is a percentage of your daily PayPal sales, the amount deducted does change daily. If your sales decline one day, so does the amount due that day.
What are the minimum repayment requirements?

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.

What happens if I move the sales proceeds out of my PayPal account or spend them before automated repayment occurs?

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.

What happens if I make sales in more than one currency – how does PayPal take my repayments?

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.

How is multi currency repayment calculated by PayPal?

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.

How does PayPal determine which transactions in my PayPal account are sales?
PayPal calculates net sales as:
All received payments, less:
  • Transfers from your linked accounts
  • Personal payments
  • 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.

Can I make additional payments toward my loan balance, independent of my sales?

Yes. You are welcome to make additional payments or even pay the loan in full early without penalty.

Automated payments as a share of your sales will continue, even if you make additional manual payments, until your balance is paid in full.

Will I see a penalty or savings if I make additional payments?

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.

Can I get a loan or merchant cash advance from another provider that's based on my PayPal sales history?

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.

Will the daily repayment percentage be applied to an existing loan or merchant cash advance from another provider that’s based on my PayPal sales history and was disbursed into my PayPal Account?

No. The daily repayment percentage does not apply to any funds you received from other providers prior to getting the PayPal Working Capital loan.

Payment Logistics And Timing
How long does it take to receive loan funds?
If your application is successful, after you agree to the terms and conditions, funds are automatically transferred to your PayPal account in minutes.
When do automated repayments occur?
Automated repayments generally occur between 7 am and 9 pm Pacific Time (PT) on the day after the corresponding net sales occur. For example, suppose you sign up for a daily repayment percentage of 15%, and your business has net sales of $100 on a Monday. On Tuesday, between 7 am and 9 pm PT, $15 would be automatically withdrawn from your PayPal account balance.
When do automated repayments start?
Automated repayment calculations begin three calendar days after you sign up and receive your funds. Your first automated repayment will then occur four calendar days after signup. For example, if you apply and receive your funds on Monday, sales starting on Thursday will be subject to the daily repayment percentage, and the first automated payment will occur on Friday.
Is the repayment percentage calculated before or after PayPal transaction/processing fees are deducted?
The amount that you repay from each PayPal sale is calculated after PayPal transaction/processing fees are deducted. Your PayPal transaction/processing fees won’t change as a result of receiving PayPal Working Capital, and are not included in the daily repayment percentage.
Can I have an automated sweep or automated settlement withdrawal on my PayPal account if I use PayPal Working Capital?
No. If you sign up for PayPal Working Capital, you will have to disable any automated sweep ("autosweep") or automated settlement withdrawal function you have on your PayPal account – and you are not permitted to add one – until your loan is paid in full. Since loan repayments happen automatically out of your PayPal account with a delay, a daily automated sweep or settlement withdrawal would disrupt the repayment process.
What behaviors are not permitted for customers of PayPal Working Capital?
PayPal will monitor participating accounts for unexpected drops in PayPal volume. We will also monitor how often you spend or transfer your PayPal sales proceeds out of your PayPal account before automated repayment occurs. The outstanding balance may become due immediately in cases where PayPal observes severe or persistent repayment avoidance, such as:
  • Stopping acceptance of PayPal as a payment method
  • Deliberately directing payment volume away from PayPal as a payment method for your business's sales
  • Transferring sales proceeds out of the PayPal account before automated repayments occur for more than 50% of the amount due (based on sales that have occurred)