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PayPal Working Capital Review

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PayPal Working Capital Review

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Date Established
2013
Location
San Jose, CA
Erica Seppala

Erica Seppala

Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.



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64 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    STEVEN MCPARLAND

    Organization Name: MCBAY PERFORMANCE INC

    We have taken out 2 PPWC loans over the past few years. The first loan went fairly smoothly. the second not so much.First, the minimum PayPal requires for repayment is 10% of all revenue that is brought in through PayPal payments (10% of every sale). That can be very hard on a companies bottom line and takes away quite a bit of profit. Especially when most or all your revenue comes in through PayPal (at least at that time it did).Second, eBay no longer offered PayPal as a form of payment if you had switched over to eBay Managed Payments. We decided to switch over to eBay Managed Payments and PayPal got very aggressive in their tactics to get their payments from us. We got calls constantly reminding us that we had to make payments even though we made all our monthly payments on time. We knew the monthly minimum that that the loan needed to not default and made that payment every month. Out of the blue PayPal then says we now owe triple the amount that was agreed upon every month to keep in good standing even though we kept up our end of the agreement with on time minimum monthly payments. Absolute horrible integrity on their part and we will never, ever use them for a loan again.Long story short: Do not use PayPal Working Capital for a loan. There are much better sources for loans out there that will not lean on a company so much for payments and will have better integrity.

    2
    • Organization Name: MCBAY PERFORMANCE INC

    This comment refers to an earlier version of this review and may be outdated.

    jamespeter

    Thanks for providing such an wonderful information on PayPal Working Capital Review… i liked the way you presented the article… hope you keep on sharing such kind of useful information.

      This comment refers to an earlier version of this review and may be outdated.

      Jewel

      Author failed to mention the additional requirements of lenders. For instance, 2 of the above-mentioned lenders require a certain number of transactions each month in sales. I deal with high-end sales, so I meet all posted requirements, but didn’t qualify due to sheer number of transactions posting each month.

        This comment refers to an earlier version of this review and may be outdated.

        Jason

        Organization Name: Spike

        Hi, Hope this helps others. I have just started and ebay store 4 months old. I just signed up for a working capital loan. I was approved for $4500 and decided to try it at $2500 with a 25% pay back and a one time fee of $305.00. Now when I singed up it noted it would be paid back over 8-11 months that great its like 1.5% interest on my money. This is not the case. Paypal has a minim 90 day pay back amount for me around $280 but they do not cap themselves. So if your like me and do $5000-6000 per month I will pay this loan back 2 months. So paying $305 for 2 months makes 0 sense. I should have read the fine print and understood that they are going to take 25% of everything even shipping fees and any other money that comes into my account. I understand borrowing money is not free but I feel paypal needs to cap themselves monthly. When I hit lets say $300 paid back for that month it stops there tell the next month. That would make this more helpful for me. Thats my 2 cents.

        3
        • Organization Name: Spike

        This comment refers to an earlier version of this review and may be outdated.

        Marcy J

        Organization Name: Empowerment Unlimited Coaching LLC

        I have had a Paypal Working Capital account for a little over 6 months. My Working Capital link on the summary page has just disappeared. Their customer service has incorrect information about a phone number that is no longer in service. Their hours of availability are also incorrect. Now I have to call back on Monday to resolve this issue.My opinion – just stay away from Working Capital. There are better lenders out there.

        1
        • Organization Name: Empowerment Unlimited Coaching LLC

        This comment refers to an earlier version of this review and may be outdated.

        Hunter Mays

        Organization Name: Time Travel Trading

        After doing almost $100,000 for the year in sales I was declined for my first loan in my second year with Paypal. I went from 15k in sales in May down to $9k in sales in August and they said the fluctuation in sales is why I was declined. It’s January and they are bringing up a fluctuation from 6 months ago. I don’t control the damn market. I can’t help the fact that sometimes sales are slow and sometimes they are great. I only asked for a 12percent of annual sales loan. Absolutely pissed when I see people getting loans who do 1/2 of the revenue I’m doing not to mention the greater Paypal fees I pay. Not happy with this service. Waste of time.

        1
        • Organization Name: Time Travel Trading

        This comment refers to an earlier version of this review and may be outdated.

        Kuno

        Organization Name: Titan Water Pro

        I have used PayPal capital at least 3 or 4 times, all good. Strangely last loan was declined. Reason they provided a PayPal account association with a unknown to us was the reason???? No further information provided, heck only have 1 PayPal
        Account and no known any other PayPal
        Account. They will not provide any further info. Disappointed, strangely they seemed to steer us towards loanbuilder program, makes me wonder and I do not intend to use their program again due to no transparency. Hey PayPal feel free to provide a understandable explanation. Dissapointed and not again will I give you my business.

        • Organization Name: Titan Water Pro

        This comment refers to an earlier version of this review and may be outdated.

        Steve mason

        Organization Name: Bcs recycle

        Crap had 4 loans last one was 26k paid in 5 months
        Sales only slightly dropped but still busy.take average 220k minimum a year just on eBay
        Now constant refusal.dldj0656 Christ knows what that means and PayPal no help and say my account is in good standing and has been for years.
        Not happy at all and at least a thousand people I know in a chain of businesses say the same.

        • Organization Name: Bcs recycle

        This comment refers to an earlier version of this review and may be outdated.

        Sloane

        Organization Name: FSPP

        I have had a few loans with Pay Pal working capital and found the service to be rather bi-polar. Granted having a successful early re-payment of a loan would be a massive positive to anyone wanting to obtain another loan however with PPWC it means nothing at all. I have loaned out $20000 over a few years time. None of this matters. I recently applied for another loan in the same amount that I had taken before and the new fees were $1100.00 more than last time. I was taken back by a blatant slap in the face. All loans were paid under a years time. This is a faster loan repayment than any loan term you would receive from a bank. Secondly, the bank has a much better rate of interest. The bank will not also increase the repayment with the more money you make on a daily basis.Seems like this loan is best for very small amounts or if you are making in access of 100K a year. The average percentage rate of charge was 10 to 22% making it as bad as Tony the loan sharks deals in a dark alleyway.

        2
        • Organization Name: FSPP

        This comment refers to an earlier version of this review and may be outdated.

        Hopeful

        Sloane,
        I had a similar experience. I had taken out 2 PPWC loans, with an APR of under 10%, and paid them out, at 30% repayment, in record time (no repayment issues) . When I got approved for the 3rd loan for a similar amount at 30% repayment rate, my APR rose to approximately 30%. I was truly taken aback. PayPal reps could offer no rationale for this. I hope PayPal fixes this issue and offers better consistency (or at least explanation). I truly like the “no hassle” approach to this loan, but I do hope that good repayment customers can soon hope for a consistent system, instead of a seeming penalty for being good customers.

          This comment refers to an earlier version of this review and may be outdated.

          Rich

          Organization Name: ShroomAngel Records

          I have been offered this, and looked into it going as far as the application process but not pulling the trigger. Why? Because if your sales are derived primarily through Ebay sales, then your repayment rate is not 10%, or 15% or 30% or whatever rate you choose because you are also paying up to 15% fees in order to sell the products that you depend upon to pay back the loan. In essence, you will now be paying 45% or higher on EACH individual item that you sell. Tell me, where is your profit margin now? The only one making money as you work tirelessly trying to maintain sales are Paypal and Ebay. You are way down the list as far as who gets that little bit of a profit from the sales.

          2
          • Organization Name: ShroomAngel Records

          This comment refers to an earlier version of this review and may be outdated.

          First_Strike

          Organization Name: First Strike

          This is true and many people do not factor this is. I was paying over $1100 in monthly payments between ebay and Pay pal.

          • Organization Name: First Strike

          This comment refers to an earlier version of this review and may be outdated.

          Timothy Wilcox

          I have been doing this for four years now. It has helped me grow and its easy to repay. I DO like that they take from each sale as you make them. No worries about catch up payments and you always know how much you can send to your bank. No waiting for them to take there payment before you transfer funds.I love it!

          5

            This comment refers to an earlier version of this review and may be outdated.

            Patrick Davis

            Organization Name: Pdavistaxi

            I got the first lone with no problems, but on the next one I wanted to get they said the income was short! Seem like to me thay should have a smaller lone amount. From $5,000.00 to $10,000.0 to help those of us were business may be slower then normal at times.

            3
            • Organization Name: Pdavistaxi

            This comment refers to an earlier version of this review and may be outdated.

            Mike Thorman (UK)

            Organization Name: CraftworkGB

            Back in December i knew i would be short for fees and some stock issue (Slow sales in my business at Christmas as a rule)The loan was quick easy and there in minuets. Yes there was a fee but it was worth it knowing that bills would be paid and a stock bought. Best idea PayPal has had in years. Would highly recommend it….

            5
            • Organization Name: CraftworkGB

            This comment refers to an earlier version of this review and may be outdated.

            Rudi

            As an entrepreneur, I tried it just to see how it worked for investing. I borrowed $1000 and paid $8 fees with 10% repayment. That is FREE money. We have an outstanding no risk account, so they judge you based on your account. If you are paying higher fees, your account is higher risk.

            4

              This comment refers to an earlier version of this review and may be outdated.

              Jane

              Do paypal report to credit?

                This comment refers to an earlier version of this review and may be outdated.

                John Walter

                Nice to have this source of credit. have had 2 loans, but the third the fees went up substantially – even though the payment rate (30% of sales) is the same. 6000 was funded with $621 fees, but now they wanted $871 for the same amount. Not happy – i paid the 6000 in 7 months, so the fees translate to over 20%/year. now with the higher fees, if i repay at same rate, we are talking about 28%

                  This comment refers to an earlier version of this review and may be outdated.

                  Rae

                  QUESTION::
                  It says PPWC will take the first payment within 72 hours How will I know what the payment is going to be?? also since money will be in my pp account i just use it just my my paypal card correct??
                  or is there any hidden things i cannot do??

                    This comment refers to an earlier version of this review and may be outdated.

                    Bianca Crouse

                    Hi Rae,

                    Your daily payment is a percentage of your sales, so it will change every day based on how much you sell. You will get to choose the repayment percentage when you are approved for a loan. Yes, you will be able to use your PayPal card to access the money. In terms of hidden things, I’d recommend reviewing the PapPal Working Capital terms and conditions.

                      This comment refers to an earlier version of this review and may be outdated.

                      Alicia

                      Organization Name: NA

                      I’m responding to your question. When I got the loan, I had no pending sales. PayPal waits until the first sale to pull the percentage of sales amount. The fee is tacked on to the top of the loan, and from there the deductions start. They let you know what amount you need to pay once a quarter, should your sales fall short. I never had to pay them myself manually, as each sale went through PayPal, and then they immediately (within minutes) withdraw to the PayPal WC.

                      Also, you can see your progress, and it shows it in terms of a graph and a % detail. Very helpful and you can feel that you are accomplishing the payback.

                      • Organization Name: NA

                      This comment refers to an earlier version of this review and may be outdated.

                      Rae

                      Question???? i am in middle of the ppwc loan, have not chosen to do it yet, my question is this one time fee, how is that paid? is it added to the amount of loan??

                        This comment refers to an earlier version of this review and may be outdated.

                        Bianca Crouse

                        Hi Rae,

                        You are correct: the fee is added to the loan amount. You will have to repay the loan amount plus the fee with daily withdrawals. Take a look at this article on PPWC for a more thorough explanation!

                          This comment refers to an earlier version of this review and may be outdated.

                          Steph

                          I like ppwc and my first loan was 3k and I paid $270 in fees. That seems fair to me. It has only been a few hours since the loan was paid off and I reapplied and got the message account type is no good for lending or something like that. I released my Experian credit freeze and will try again in a few days…

                          5

                            This comment refers to an earlier version of this review and may be outdated.

                            Michelle

                            The loan has nothing to do with your credit. They do not pull a credit report. They go strictly by your Paypal sales. It sounds like they feel that your account is not the correct type for the loan. Which is strange, since they already gave you a loan. But it has nothing to do with your credit reports. They do not pull those.

                              This comment refers to an earlier version of this review and may be outdated.

                              Amista Bennett

                              The same thing happened to me. I applied for a new loan after paying off the old one and was denied. When I called PayPal they said wait 3 days for the old loan payoff to process and then reapply. I did and everything went smoothly from there.

                                This comment refers to an earlier version of this review and may be outdated.

                                Ed

                                I run a small online business, and have been using paypal for years8 months ago Paypal offered us a loan, max amount for the first loan was 47kbut we decide to get a smaller one since it was the first loanso we applied for 24k at %15 repayment and paid it off in 6 months, since we got the loan our sales has increased by %15-%20 Percent we recently applied for a second loan, but this time all they offered us was 28k! at %30i applied for the second loan 1 day after i paid off the first one.i think its a great system, helped us a lot, but the way they calculate the amount of money they are willing to give you doesnt make sense

                                3

                                  This comment refers to an earlier version of this review and may be outdated.

                                  Ce

                                  I can agree with your example. What i found out from ppwc they see what your sales has been in the past 12 months. So with that being said my sales has been up almost 50%. They offered me the same amount when my sales was a fraction what they are now. I don’t understand either. Very confusing….

                                  2

                                    This comment refers to an earlier version of this review and may be outdated.

                                    J

                                    I did like this loan, until their system started glitching!! Now they are taking out 8-9 times a day small amounts! It’s screwing with my financial paperwork! I don’t have a email company, I have a real corporation that can’t have this petty bs going on! Either FIX YOU GLITCH OR ELSE! Take out once a DAY! LIKE YOU USED TO! Not little amounts all damn day! This is screwing my accountant up! And they’re not wanting to deal with my business anymore! Especially the shadiness stuff where my money just disappears from PayPal!

                                    1

                                      This comment refers to an earlier version of this review and may be outdated.

                                      Traci

                                      They take a percentage back of each sale so if you have several transactions a day, then you will have several transactions a day. I use QB and I’m not an accountant and it is very easy to manage. All your account has to do is run a report and enter in one lump sum amount on a daily basis lol.

                                        This comment refers to an earlier version of this review and may be outdated.

                                        Jerry Charboneau

                                        I had three previous Paypal Working Capital loans, and all three of them I was satisfied with. I applied for a 4th and this time it presented me with an “offer” that by far exceeded the amount of the previous three. It did not present me with an option to change the amount. They had also increased the add on fee by a greater percentage than the previous three. Also, nowhere did it mention that they had changed their terms and conditions since the previous loans. They had added a clause that if your monthly sales do not meet what they anticipated when they presented the loan offer, that you would personally be held responsible to make up the difference. I would NOT have accepted the loan had I been aware of that.After that, sales went down instead of up as I anticipated. Ironically, I was getting a greater market share, but overall, in my industry, sales were depressed. Then I received a call from a snippy woman demanding immediately that I pay out of my pocket what Paypal Working Capital felt they were owed to “bring it up to date.” She kept acting like I had agreed to terms that I never saw. She did however admit that they had changed their terms since I had taken out the previous loans. After a prolonged session of sitting in front of the screen, clicking on every single link on my Paypal Working Capital page, I found buried within several secondary links a clause that you were agreeing to pay 10% of your total borrowed amount plus the fee every 90 days for the first 540 days of the loan.Had Paypal Working Capital put up front that their terms had changed, or that it is no longer quite the “no worries” like they made it out to be, I would have no legitimate complaint. I feel however that they went to great lengths to make this clause was hard to find, when it should have put it up front for all to see. It should have not been buried within dozens of links that if you don’t click on every one, you’d never find much less know about. I only found it because I looked for it relentlessly after being told there was such a clause.Now I am receiving harassing phone calls with threats. I did not bargain for that.

                                        1

                                          This comment refers to an earlier version of this review and may be outdated.

                                          Faisal Khan

                                          On April 2017, I paid off the first loan. I was told that I can apply again within 5 days. So waited 5 days and decided to apply again. Got denied it said Account was not in good standing. So I called Paypal Working Capital and gave them the error code and after investigation, they told me, it was due to an old account that I had was in the negative balance for which it was denied.Now they would not tell me which account it was. So I started going through my email and files, tried to call all the account that I had opened in the past. There was one account where I owed $50. So it was negative $50. Paypal worked with me on this, I paid the account. They told me to wait another 5 days. While I was waiting, I called PayPal and talk to their customer service to ensure I have no other account open or pending.After the 5th day, I tried again, it got denied. This time error was Something about my record did not match public record. So basically either my SSN or my Address did not match the credit report. I once remember Paypal had my last 4 digits of SSN wrong. For example, if my last 4 digit SSN was 6965 they had it 6956. So I entered the wrong SSN and within 1 minute, I was approved for up to $17,500 at 30% deduction rate. I instantly took it. It is great to have such service. later I found out that it was not PayPal problem, it was a problem with experien credit company they had my SSN number incorrectly set.

                                          5

                                            This comment refers to an earlier version of this review and may be outdated.

                                            nanlika

                                            I use paypal for wholesale and I’m one of those they called when they start PPWC (was selected as A GOOD Guinea pig) I got many loan from $20000-35000 and I use them many times “forgot to count” how many times). /////PRO AND CON /////PRO1 : QUICK , EASY … instant loan and transfer to your bank in a dayPRO2: sync to quickbook online and track sales and PPWC payment all together PRO3: no credit check, no collateral , you don’t have to tell your wife or husband (nag)CON1 : sync QUICKBOOK not 100% accurate by $200-300 each year .. so you might have to adjust balance in quickbook to match paypal.CON2: sync QUICKBOOK show PPWC as expense … you have to edit each payback as “LOAN PAYABLE”CON3: very robot so if you are good, bad client (nobody care), no special treatment for good pay back record.CON4: interest higher every year (say what?) CON5: average $30000 pay back 30% is $32365 (or approx 7-8%) but since pay loan back in 6-7 months, then I actually pay 14-16% a year interest rateBOTTOM LINE :::: If you trade buy/sell and make profit 5-30% wholesale and make 100% profit margin RETAIL a month, then you can afford 7-15% interest a year.

                                            4

                                              This comment refers to an earlier version of this review and may be outdated.

                                              Maggie

                                              I love the working capital loans. They don’t show up on your credit. If you qualify for a large loan and/or are trying to finance anything anywhere else, this is a major bonus. I’ve had a bunch of loans now ranging from $12000-$38000, starting in January 2016. I just paid off the most recent (largest) one and am so tempted to get another one even though these loans have really served their purpose for me at this point. Currently you can get up to 25% of your yearly sales up to $97K on your first loan (not sure about subsequent loans as I haven’t reached the $400K revenue via Paypal yet). If you have consistent sales, the only catch here is that you are effectively paying 30% APR to borrow the money (if you choose the 30% repayment plan which has the lowest fee). If your sales are spotty and it takes you longer to pay the loan off then it’s a little better. But all said and done, our fees have come out to 30%+ APR. At least the fee is a business expense.

                                              5

                                                This comment refers to an earlier version of this review and may be outdated.

                                                Kirt Clark

                                                I just recently paid off a 5th PWC loan that was expected to be paid off in two years and was charged interest for that length and paid it off within 12 months and a week. I applied for a sixth loan and was declined. I always had plenty of cash available for their daily withdrawals and always have been in great standing. What gives? I am up 31% this year from the infused cash into my account. I was projecting another 30+ increase this year and expanded operations & hired additional workforce and storage space to incorporate the new advanced loan. I now have to fire workers as the inventory will not be available for expansion. PWC was awesome for 5 loans and dont know what happened to them as I read a lot of similar complaints.. Good luck

                                                1

                                                  This comment refers to an earlier version of this review and may be outdated.

                                                  Sierra

                                                  Great at first.At first the loan was great. We were able to repay it quickly because they took out their % quickly. The second go around PayPal literally leaves the money in there and doesn’t deduct for days or even over a week. We are then stuck waiting to withdraw our portion to pay bills. Each time they wait longer and longer. I’ve just started leaving them hanging and plan to just pay it off in full next month. I won’t be getting another. It’s hard to repay them if they don’t take their cut and I cannot leave my bills unpaid waiting on them to take their portion!

                                                  1

                                                    This comment refers to an earlier version of this review and may be outdated.

                                                    George

                                                    PayPal working Capital is another way to rip people off their money. Be really careful and read the fine prints because if you didn’t pay your loan in 90 days they will add 10% of the entire loan and you end up with more debt.If you have a 3000 loan and you not pay back 3000 in 90 days and for example you paid to say 2000 before 90 days when 90 days pass you end up with 2300 left to pay for the next 90 days and so on until they squeeze you last drop and left you dry. I have that experience and I never ever apply for a loan again. It really suck but we learn from our mistakes.

                                                    3

                                                      This comment refers to an earlier version of this review and may be outdated.

                                                      Dana Mezzatesta

                                                      I HAD 2 PayPal loans both paid on time and paid off. 3 rd Loan denied! Nothing wrong with my account. Awful!!!!!

                                                      1

                                                        This comment refers to an earlier version of this review and may be outdated.

                                                        Jen Cavacas

                                                        I applied for my NINTH loan and was told my “industry” didn’t qualify me this time. Huh?? So I went and tried every industry they listed (which is what I was told to try from their Unhelpful service rep) and still nothing. Something fishy going on here….

                                                        1

                                                          This comment refers to an earlier version of this review and may be outdated.

                                                          Jessica

                                                          I applied for a Working Capital Loan in March and was approved for up to $3,500. I only borrowed $2,500 (with a 30% repayment charge) and was able to put that right back into my business to order new Spring inventory for the shop! Awesome! I paid off the loan the beginning of May, so I used it for 2 months. When I went to reapply, I was only offered $1,500…….and I’m unsure why. Obviously, business had picked up considerably if I was able to repay the loan in 2 months instead of the 5 months, so why wasn’t I offered more the second time around. I’m not sure this is a loan I will use again if the approval amount is going to change that drastically. As a new, small business, this was something that came at the perfect time and allowed me to keep new inventory coming in weekly. Hopefully, Paypal can figure something out. I love using them, but this may be a game changer for me and my business.

                                                          3

                                                            This comment refers to an earlier version of this review and may be outdated.

                                                            Mark

                                                            My 1st loan was $27,000. I had my money in 24 hours.Bought new equipment. Have paid back about 1/2 and as soon as it is paid in full, I will hopefully do the same.Great easy way to fund a small business.

                                                            5

                                                              This comment refers to an earlier version of this review and may be outdated.

                                                              Eleanor

                                                              I was one of the first clients to be offered this working capital program, have paid back 9 loans ranging from $20,000-$30,000, always take 30% payback and have made it happen without any issues, well today at 9:45am on a Monday I get a collection call from paypal, I explained that the 30% over the weekend was transferred to our account and that being involved in weekend work ( a limo service most busiest time)we would take care of it this week, my issue is this happened on a saturday and very rarely happens and is taken care of within 24 hours when we do not have enough for working capital to take their cut, we get an email ,we are aware of this and know we need to make those funds available ,the phone call was NOT necessary and has made me realize that times are changing and this is going to become an added Harrassment I don’t need so having less than 5% owed back on a 30,000 loan I will NOT be doing this again, we have proven ourselves as a company and have always paid back “catch up” payments within 24 hours if they occur and that phone call just ruined this relationship

                                                              1

                                                                This comment refers to an earlier version of this review and may be outdated.

                                                                Susan M Lawrence

                                                                I used PPWC once and paid back quickly in less than 3 months.. I reapplied and was denied, I called customer support and apparently it was due to having a rolling reserve my account, I was told to reapply the following day I did and was again declined this time was told it was due to seasonal sales= what gives PayPal?? Is this how you treat your best customers?

                                                                2

                                                                  This comment refers to an earlier version of this review and may be outdated.

                                                                  Cameron

                                                                  PayPal Working Capital is a wonderful way to expand your business. I’m on my second loan, which was increased by $1500 because the first loan enabled me to improve my sales. Paying off my first loan was absolutely painless. I hardly noticed it. I was amazed at how quick and easy the whole process is. From initial application to having the money in your account takes less than 5 minutes. Pick your pay-off percentage carefully. The lower the percentage, the higher the fee. But, you might not mind the higher fee if you’d rather keep more of your sales revenue. You need to weigh your immediate financial needs against your longer term needs.

                                                                  5

                                                                    This comment refers to an earlier version of this review and may be outdated.

                                                                    Mandy

                                                                    The PayPal working capital was waste of time and resources for me. My sales were going high each day/month before I borrowed PWC. Since I borrowed, sales went drastically down. I assume it is because, I chose to repay in 18 months with 10% daily deduction from my sales. This is why, probably, my sales went so drastically down. I don’t know who, PayPal or eBay as they are connected together, hold my sales in the slow rhyme. The reason I assume is, say, if my sales would be much higher then I would repay he loan in 6 months or 12 months but I signed up for 18 months. So, they carefully monitor my sales, in order to the total daily deduction would not exceed 10%!!! I figured it out after while as before I never used PWC. Despite PWC I have a bank loan, 2 other small loans and I have to repay them as well! How on heaven, before when I didn’t have any loans I increased my sales 6 times for only 6 months. But now with 4 types of loans sales are lower then last years! It is better not to mix up PWC loan with other ones, keep PW separately, otherwise it destroys all business. Now, when I check the repayment history, it shows, for 1 year I repaid 2/3 of the loan and so 1/3 is left until the end of the terms which is last 6 months! Even, other credit organisations noticed it, before they issued me loan my sales were high than now. I don’t want anymore this PWC once I repay it. They must not hold sales because of chosen %%%%%%%. I didn’t give my permission for monitoring my sales in favour of them. I was worried what happens if I repay my loan for 6 months or earlier, now I know, PayPal doesn’t let you sale more than 10% of the repayment, what is such shame!!!!!!

                                                                    1

                                                                      This comment refers to an earlier version of this review and may be outdated.

                                                                      Jeff

                                                                      This is the most transparent loan you will ever get. I started using PayPal to process my business credit transactions in July of 2015. I applied for a loan in April of this year and was loaned $20,000. It will be paid off next month and it has really helped me purchase inventory and pay back 10% of my daily sales. I don’t even miss it now and will apply for a second loan once this one is paid off. This helps a small business in so many ways and if you have a slow month, you just pay the a little less each day. 5 stars for sure. P.S., Vend point of sale integrates with PayPal and they are an awesome combination with outstanding support.

                                                                      5

                                                                        This comment refers to an earlier version of this review and may be outdated.

                                                                        Robin

                                                                        Were you able to take out another loan.? If so for how much? Did it go up?

                                                                          This comment refers to an earlier version of this review and may be outdated.

                                                                          phatso

                                                                          this concept is idiotic.in order to “borrow” 10k, i need to keep a MINIMUM of 10k in my paypal account.So basically, i have to let them hold my money in order for them to let me borrow up to the max of my money that they have? WTF?there is ZERO logic behind using this “service”

                                                                          1

                                                                            This comment refers to an earlier version of this review and may be outdated.

                                                                            Emmanuel

                                                                            Hello Tara,

                                                                            I have used PayPal working capital twice now. They do not factor in dollar amount in your account. They go by your sales volume and there is no credit check. I think that’s pretty good.

                                                                              This comment refers to an earlier version of this review and may be outdated.

                                                                              Andrew

                                                                              Working Capital is great for small businesses that can not get conventional bank loans. The process is quick and the money is available within minutes.We are now on our 4th loan and have never had an issue. I would like to correct some of the info on the article though- Paypal will loan up to 15% of your sales in the past 12 months- Maximum loan amount is $85,000 (not $97,000)- Interested is nowhere near 25% APR even when amortized. We have had loans of $4,500, $6,500, $14,000 and $16,000 and the interest has been $230, $295, $1,016 and $1,200 respectively with a 20% repayment rate. Keep in mind that each loan can last up to 18 months so even amortized, it’s nowhere near 25%. Finally a note for cases like Tara’s – although the money is available immediately in your Paypal account, they can’t be transferred to a bank for 5 days! You can withdraw with your Paypal card and you can use the money to pay other Paypal people but it is not available to send to a bank for 5 days. That is why her transfer failed. Finally, even when a bank transfer fails, the money doesn’t just get ‘lost’; the transaction reverses back to the Paypal account but it can take up to 2 weeks.

                                                                              5

                                                                                This comment refers to an earlier version of this review and may be outdated.

                                                                                Bianca Crouse

                                                                                Hi Andrew,

                                                                                As of my last update, PPWC had upped the amount they’d loan to a maximum of 18% of the merchant’s annual sale, with a cap of $97K. See PayPal’s FAQ for more details, particularly the question “How is my maximum loan amount determined?”

                                                                                As for APR, you are correct that they can be lower than 25%. I have updated the article to more accurately reflect this.

                                                                                Thank you for your input, and I’m happy that PPWC is working out for you!

                                                                                  This comment refers to an earlier version of this review and may be outdated.

                                                                                  Homer Munoz

                                                                                  Paypal Working Capital has been great for my business.
                                                                                  I give it a strong A+

                                                                                    This comment refers to an earlier version of this review and may be outdated.

                                                                                    Tee

                                                                                    All I’m going to say is this loan is GREAT. You pick how you would like to pay back as far as the percentage goes. If your business keeps making money Paypal will keep loaning you money. It’s really great for a business that’s looking to grow.

                                                                                    5

                                                                                      This comment refers to an earlier version of this review and may be outdated.

                                                                                      Shane

                                                                                      I have used this service twice and love it. It helped me with a sudden techno-crash and this time it has helped with a massive ad campaign. Thank you!

                                                                                      5

                                                                                        This comment refers to an earlier version of this review and may be outdated.

                                                                                        Chris

                                                                                        I got my 1st loan for $9500.00 and it is only taking me about 2 months to pay off. I am planning to get another loan for around $20,000. I take these loans only to purchase inventory. My 1st loan I chose to pay back at 25% of my sales. The rate was great. Better then any small business loan but sometimes the 25% was a bit high so my second loan I think I am going to pay back slower and only have them take 10% out of my sales. For me, the application took about 2 minutes and I literally had the money 1 minute later. Awesome!!!! and I have always been a PayPal Hater….Even though it is really Web Bank providing the funding I still give PayPal the credit for this

                                                                                        5

                                                                                          This comment refers to an earlier version of this review and may be outdated.

                                                                                          Kristi

                                                                                          I have used this service twice now. Initial time was for $2000. That loan was for purchasing a bulk lot of goods to resell. It took me just over a year to pay back. 2 months ago I took out one for $4,500. The purpose of this loan has been to help me grow my business. I had hired employees and wanted to be able to increase their hours worked per week. But the first 6 weeks of a new hire or increased hourly employee is often the hardest for making payroll. This has allowed 2 of my part timers to double their work done. And I am already starting to see my sales increase by over 300% in that short period of time! I’ll have the loan repaid MUCH sooner than the 9 months I signed on for (20%) – and I’m growing right in time for 4th quarter sales! Kudos to Working Capital!

                                                                                          5

                                                                                            This comment refers to an earlier version of this review and may be outdated.

                                                                                            tmwright

                                                                                            I’ve got to say I think this working capital loan is awesome! I’m on what I believe is my 6th loan and I’ve gone from a $2000 loan in early 2014 when it started to my $20000 loan that I’m finishing up in the next week. I will have paid it back within 120 days and that money used from the loan has increased my sales percentage by double digits. Because of the capital loan, I’ve been able to buy larger lots of merchandise which has stabilized my business. Without the loan, yes I would have eventually gotten to where I am today but with this loan, it made it happen much faster and allows me to continue to grow this business. Thank you Paypal Working Capital!

                                                                                            5

                                                                                              This comment refers to an earlier version of this review and may be outdated.

                                                                                              Robin

                                                                                              Were you able to take out another loan? I am going to take out my second loan soon a small was just wondering if they will increase the amount. My first loan was 17500. I am hoping for 25,000 this time around.

                                                                                                This comment refers to an earlier version of this review and may be outdated.

                                                                                                Kun Kim

                                                                                                paypal repayment process is ripoff sucking

                                                                                                1

                                                                                                  This comment refers to an earlier version of this review and may be outdated.

                                                                                                  Ronnie

                                                                                                  In April, 2015, they loaned me $4k. In January, 2016, they loaned me $7k. In August, 2016, they loaned me $7.5k. The entire process is completely flawless. With each loan, the funds were in my PayPal Account within a matter of a few seconds. Needless to say, I am extremely satisfied with their process. After I paid off the first loan, they offered me the second loan the next day. After I paid off the second loan, they offered me the third loan, the same night. Great company to do business with.

                                                                                                  5

                                                                                                    This comment refers to an earlier version of this review and may be outdated.

                                                                                                    MissJay

                                                                                                    I applied and had money in my account within 10 mins, start to finish. I am 15 days into a loan and I am beyond pleased. With past credit issues, there is no way I can get a loan at such a low cost (though it’s a fixed rate, it turns out to be 5.6% interest on the loan. Certainly much lower than I can get on my own). Paypal knows my history and knows I can pay it back in a timely manner (especially with it being automatically drafted from my Paypal account at a set percentage on a daily basis). They don’t take money I don’t have. They are taking a percentage of the money I make, as the clients come in. Here, at day 15, I have painlessly paid off 14.8% of the total loan. The money helped me to do some much needed marketing….thus increasing sales….thus speeding up the payback process….and increasing my income. Great work, Paypal!

                                                                                                    5

                                                                                                      This comment refers to an earlier version of this review and may be outdated.

                                                                                                      Fred Takla

                                                                                                      great and easy process

                                                                                                      5

                                                                                                        This comment refers to an earlier version of this review and may be outdated.

                                                                                                        Lynda

                                                                                                        PayPal Working Capital worked very well for me. The application and transfer of funds was easy. It was nice to be able to choose how much I wanted to pay back each day out of my revenue. PayPal is my primary for credit card payments, online and in-store, so has been seamless from start to finish. While I have not had to use customer service for this particular PayPal service, I have always received excellent, and easy to understand service whenever I have called for other reasons. I would not hesitate to use PayPal Working Capital again.

                                                                                                        5

                                                                                                          This comment refers to an earlier version of this review and may be outdated.

                                                                                                          Tara

                                                                                                          Right now this service is a one star. I received working capital and transferred it to my bank account.The transfer says ‘pending’ after two days. Paypal says it’s a bank error. My bank says it has not received the money from Paypal. Problem is on day 3 I have to start paying back the loan. No one at Paypal can give me a reasonable explanation as to where the money went, even though I made another transfer on the SAME day to my bank that arrived within 24 hours. I have been with Paypal for 5 years. It has never taken this long for funds to arrive. You would think that after 5 years they would consider me a valued customer. Unfortunately this is not the case.. SO tomorrow I have to start making payments on money that for all intent and purposes is LOST. Way to go Paypal. Instead of helping my small business you just screwed it!

                                                                                                          1

                                                                                                            This comment refers to an earlier version of this review and may be outdated.

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