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  • Paypal Working Capital

    Hooray for Paypal!!! I was lucky enough to receive an offer to participate in their new working capital program recently. At first I was skeptical because it just sounded far too good to be true. After some research, though, I decided to give it a try. From what I read, Paypal launched this program in direct response to surveys of small business owners. The number one complaint businesses had was lack of access to affordable capital. Thus their working capital program was born.

    Anyway, after deciding to give it a go, I completed their application. That took all of 30 seconds, I was given an offer with several different payback percentages and the associated fees within 90 seconds. Then, I selected the option I like best and clicked the Accept Offer button. Boom. The loan was funded within ten seconds. I have been repaying for over a week now but haven't yet touched the capital because I still can't believe I'm not imagining this. The loans are totally free of interest, and have no fees except a one time loan fee, which is very small. Best of all, since it is just a percentage of sales I only pay it back as the money is available. If I should have a zero day, they take nothing (with no penalty or fees) and if I have a huge day, they take a lot.

    So, thank you thank you thank you to whatever Paypal gods exist who made this possible. If anyone else was on the fence about doing this I have nothing but good words to say about it!
    Laura Z
    Brass & Silver Traditions
    www.brassandsilvertraditions.com

  • #2
    Can you tell me what the subject line of the email you got offering it was? I feel like I got a similar-sounding offer but just deleted it as general junk.

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    • #3
      I was looking at this the other day also. I was definitely skeptical, but after hearing from someone who has tried it successfully I might go back and give it some serious consideration.

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      • #4
        If I may ask how much money did they front?
        http://www.pack-secure.com

        Packaging and Shipping Supply Specialists

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        • #5
          Originally posted by cbsteven View Post
          Can you tell me what the subject line of the email you got offering it was? I feel like I got a similar-sounding offer but just deleted it as general junk.
          Found mine. The subject header was: "Getting a business loan has never been easier"

          You can also find the info when you log into your PayPal account. Right beneath your PayPal Balance will be a long, blue button (takes up almost the entire page width) labeled:

          "Introducing a business loan that lets you pay when you get paid | Explore PayPal Working Capital"
          Last edited by onering; 02-27-2014, 11:25 PM.

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          • #6
            We imagine that you have to have a certain PayPal volume or use something other than Standard because we don't see it anywhere. 99% of our sales are CC sales though, so not much PayPal volume.

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            • #7
              Originally posted by Pack Secure View Post
              If I may ask how much money did they front?
              Their example shows a business with $100,000 in annual PayPal sales seeking a maximum loan, which is listed as $8,000. Also says "Pricing will vary depending on your business's sales"

              PayPal 10%/You 90% fee is $947 on $8,000 total repay $8,947
              PayPal 12%/You 88% fee is $767 on $8,000 total repay $8,767
              PayPal 15%/You 85% fee is $594 on $8,000 total repay $8,594
              PayPal 20%/You 80% fee is $431 on $8,000 total repay $8,431
              PayPal 30%/You 70% fee is $281 on $8,000 total repay $8,281

              This is their example, not based on anything we do. Kinda steep if you pay it back slowly, not so bad if you front-load your repayment.

              We don't do NEARLY enough PayPal volume to qualify for this, but that's on us. This could help a lot of people if they can front-load repayment.

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              • #8
                Paypal is our payment gateway for credit cards, so our volume is significant. The program is still in it's pilot phase, so it is currently available by invitation only. Anyone who was invited will have a Paypal Working Capital tab on their dashboard. Even if you no longer have the email you can access it that way.

                I don't know exactly how they determine the amount, but it is a maximum of 8% of your annual Paypal revenue, not to exceed $20,000. I was offered $7500, and I selected the 15% payback. The fee was $348.00. No other fees, no interest of any kind, and it will be repaid (almost) painlessly within a matter of a few months.

                Here is an article that gives a bit more detail about the program: PayPal to Give Small Businesses Access to Working Capital in Minutes | Entrepreneur.com
                Laura Z
                Brass & Silver Traditions
                www.brassandsilvertraditions.com

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