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!