Tag Archives: payment

PayPal Working Capital: A Game Changer For My Business

In my last blog I mentioned that PayPal Working Capital was one of the services that I wanted to cover. Having just this past week opened up my fourth loan with them, I figured that now is the time to write this blog. I may not write a ton of blogs on here, but I feel happy to be able to say that each blog I do put up has a lot of thought and time put into it. For me this blog is a long-term project, and over the course of my life I look forward to growing it with quality content, rather than just throwing stuff up.

I first began using PayPal Working Capital when I was sent an invite via email. It advertised a business loan that wouldn’t effect my personal or business credit score, had a flat fee, and the ability to pay a little each time I made a sale via PayPal as opposed to a monthly payment. Almost sounded too good to be true! I had to look into it more.

Upon further investigation I read a lot of great reviews online. I checked out their website, which interested me even more. PayPal Working Capital works by them having the ability to see your sales via PayPal, therefore they are able to customize a personal loan to you based on those sales, then you repay a small percentage (that you have the option to set) with each sale you make on PayPal. I have made PayPal sales over Instagram, Etsy, and elsewhere in the past, but my main source of PayPal sales come from eBay.

With each of the four loans I have taken out with PayPal I have taken a larger amount each time. My most recent loan was for $9,000. The ability to increase my cash flow and be able to purchase inventory I otherwise wouldn’t have been able to has significantly increased my gross revenue. It has also given me the ability to invest into other areas of my business. The process to take out each loan is simple and straightforward. You put in a little information and if you reach the sales threshold they offer you a few options on how much of a loan you wish to receive. You can choose the amount, the percentage of each sale you agree to pay back, and they show you what the flat fee will be. Once you agree on a loan that suits you, in most cases, you have the money deposited in your PayPal account immediately. I have only once had the loan take about 24 hours to be deposited, every other time it was an instant deposit.

You will often hear people say that you shouldn’t use credit or take out a loan. If you are in business, to me, that’s the wrong approach. If you just want to very slowly grow your business (as well as stress out and possibly fail), there’s nothing wrong with that. But if you’re trying to scale your business, “other people’s money” is something you need to be comfortable with.

As I’ve mentioned before I’m also in the beginning stages of buying a house, so taking advantage of a business loan which doesn’t effect my credit score was a HUGE plus for me. This is one fact I can stand behind and guarantee you — opening up a loan with PayPal Working Capital will NOT show up on your credit report, I guarantee you that.

If you are in the same boat as myself, with a majority of your PayPal sales coming from eBay, there is one thing that you should be aware of. That is the fact that eBay recently announced they will be processing their own payments in the future via a startup known as Adyen. Once this begins, for someone like myself, these PayPal Working Capital loans will likely be harder to aquire. However, eBay has also announced that they’ll be teaming up with Square Capital to offer sellers their own version of a working capital loan. Yes, the drama between eBay and PayPal continues!

As time goes on, and more information becomes available, I’ll update this blog post with the latest information, my personal trials, etc… I do know that I’m at least interested in the Square Capital loans as Square is a company which I’ve supported and invested in for some time.

Thanks for reading and if you have any questions or comments please leave them below!

Brent Ott

Track Your Credit Score Absolutely FREE of Charge with Credit Karma

There are many people (*cough* Dave Ramsey *cough*) that will tell you that your credit score is unimportant, that credit is a trap, credit cards are the devil, blah, blah, blah…. I am the opposite. Being different is something I enjoy!

Let me start by saying this: if you are the type of person who doesn’t take life seriously, think debt doesn’t matter, doesn’t know how to budget, constantly spends more than you make, well, you probably SHOULD stay away from credit all together. If you are someone who likes to look ahead towards the future, someone who plans for life’s emergencies and happenings, and someone who looks for little ways to make/save a buck or two, you SHOULD focus on credit. Every year since I pay my card balance in full every month, I literally get paid to use my cards. My favorite card, for example, offers 5% cash back on EVERY purchase I make. Do you get $5 for every $100 cash that you spend?!? ABSOLUTELY not!

One of the easiest ways I have found to focus on and grow your credit score is by using Credit Karma, which is an absolutely free service. No hidden fees, whatsoever! Signing up is quick and easy, and once you sign up you can log in and check your credit score free-of-charge anytime. An even better feature is that your score updates once per week, not once per month, etc.. like some of the other free sites out there.

When I was younger, I’ll admit, I didn’t understand credit. Like many teenagers and 20-somethings I had a few cards that I maxed out and got behind on payments with. If only I knew then what I know now! The simple fact is that if you want to easily be able to fund some of life’s biggest purchases like a new car or a house, having a high credit score is important. Yes, there are other ways, such as manual underwriting, to get a mortgage. However, these involve much more hassle.

When I started reading and learning about credit I realized many of the things that Credit Karma helps you manage and track such as your Credit Card Utilization (which should always be as low as possible), your Payment History (should always be 100%, don’t miss or be late on a payment!!!! EVER!), your Derogatory Marks (focus on paying off old debt! AT LEAST debt less than 7 years old!), and other factors.

When you begin logging into Credit Karma weekly and tracking your scores, magic begins to happen. You see that the things you are doing have direct impact on your scores. You start to focus on old debt, you begin better using your available credit and not spending it on unimportant things. I, for example, went from someone who credit companies wouldn’t even consider for a new card to someone who gets easily 10+ card offers in the mail per week. Now I don’t accept them all, or even hardly any of them, but the feeling of receiving them is just something that makes you know you are on the right track!

A big factor in your credit score are your Credit Inquiries. These are a little mark you get on your report every time someone runs your credit, such as when you apply for a new loan, apply for a new card, apply for a mortgage, etc.. The less you have each year, the better. If you have tons of them each year it makes you look like you are out of control in managing your credit. I personally usually only like to apply for maybe one or two things per year, if that. It depends on what is going on in my life. Currently I only have four credit cards, one car loan, and no mortgage (right now anyway, that will be changing this year, more on that soon!).

Bottom line, Credit Karma is awesome. I could go on and on with little tips and tricks to help grow your score, and I WILL do just that in future blog posts, but if you sign up for Credit Karma you will be able to learn them all for yourself right there, again, with ZERO hidden fees. So what are you waiting for? Go give it a shot at the following address: http://creditkarma.com

THANK YOU for reading this blog and if you have any questions or comments feel free to leave them below, I promise I will reply!

Brent Ott