A Breakdown of PayPal Working Capital Loan


PayPal introduced a lending service not so long ago, and it has become thetalk of the industry. Following, we are going to see what’s so special about it.

Sum up

It gives instant capital to needy businesses. The process is rapid as compared to traditional loans. However, this service is only available to businesses that process payments using PayPal. It offers the following benefits:

  • Easy payments, a percentage of sales processed via PayPal
  • Up-front fixed free instead of interest rates
  • No credit check needed as the only criteria needed is PayPal Sales
  • Instant Funded as Money is wired into your account at the moment


Following are the qualifications you should meet to qualify for PayPal Working Capital:

  • Residence in United States, Australia or theUnited Kingdom
  • Been a user of PayPal Business or Premier for Three Months or more
  • Processed minimum $20,000 payment in PayPal Premier Account
  • Processed minimum $15,000 payment in PayPal Business Account
  • No Existing PayPal Working Loan

How much can youborrow?

If you meet the criteria mentioned above: then you can easily burrow almost 18% of the payment you processed via PayPal in the last year. For instance:

If you processed $15,000, you could borrow $2,700

If you processed $50,000, you could borrow $9,000

And so on.  The maximum amount that PayPal lends is $97,000 at the moment. To qualify for this amount, you need to process at least $550,000 before your application.


PayPal doesn’t charge any interest (not in aconventional way at least). The company charges an upfront which is more of a field fee. It is repaid with the loan balance. Repayments are made in shape of a small percentage of every sale processed via PayPal and apply to theoutstanding balance.

Yes, the service has nothing such as periodic interest rate, late fee, monthly charges, penalties, etc. Following, we are giving a basic idea of how it works, and how to repay

Annual Sales Time to Repay Loan Repayment Fee
$300,000 21 Months $54,000 10% $18,030
$180,000 8 Months $24,000 20% $2,287.5
$52,000 9 Months $6,000 15% $666
$30,000 4 Months $3,000 30% $133.5


Charges are based on the following factors

  • PayPal Sales History
  • Loan Amount
  • Repayment Percentage (High Percentage means low fees, and it goes the way around)

The capital fee is way high as compared to a credit card or business loan in same time. But these loans need cash advanced,or other payment feels. The main selling point for PayPal is it offers aninstant solution to needy business, but they aren’t doing it out of their kindness.

Applying for the PayPal Working Capital Loan

Make sure you meet the criteria. Log into your account, Don’t change anything especially how you receive payments, charge customers or anything related to PayPal Services. Repayments will be automatically deducted from your account.

The application will take 5 minutes,and if everything goes well, you will have your money in minutes. The best part is, you don’t need a personal guarantee. Getting a PayPal Working Loan will have no effects on your business credit score.

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