PayPal, widely known as a worldwide online payments system that serves as an electronic alternative to traditional methods such as checks and money orders, also provides funding to small businesses through its PayPal Business Loan and Paypal Working Capital divisions.
PayPal Business Loans are available to businesses that are located in the United States and have been operating for at least nine months. In order to be eligible for a PayPal Business Loan, a business must show no prior bankruptcies, generate a minimum of $42,000 in annual revenue, and possess a PayPal Business Account.
PayPal Business Loan amounts range from $5,000 to $500,000, and offer terms ranging from 13 weeks to 52 weeks. The range depends on the amount of the loan. A business owner must complete a questionnaire online or via telephone to assess a business’ eligibility.
During the process of reviewing an application, credit checks are performed on both the business owner and business, and PayPal often requests additional financial documents beyond the required four months of business bank statements. If a business is approved, funds can be transferred from the lender (Celtic Bank) directly into the business’ Paypal account the following business day.
Unlike many other loans, PayPal Business Loans come with an upfront fixed fee. There are no interest rates. The fixed fee is determined by Celtic Bank and depends on the amount of the loan and health of the business. Repayment is set on a regular schedule. Automatic withdrawals will need to be set up, so that the repayment will be withdrawn from the business’ bank account on a weekly basis.
PayPal Working Capital is PayPal’s other merchant financing division that provides business loans. Once approved these loans are provided in a rapid and convenient manner. Many times funding is provided within minutes of a completed application. PayPal Working Capital loans are available to businesses that have had a PayPal Business Account for at least ninety days and that have processed a minimum of $15,000 with PayPal over the previous twelve months.
PayPal Working Capital loan amounts range from $1,000 to $125,000, and there is no credit check. The lender, WebBank, relies upon a business’ PayPal sales history in making a lending decision. If a business is approved, a business owner is often permitted to borrow up to 30% of its annual PayPal sales, with a maximum loan of $97,000 allowed. Repayments are automatically deducted daily from the PayPal Business Account as a percentage of each sale until the loan amount and fixed fee are paid back in full.
PayPal Working Capital loans do not utilize interest rates. PayPal Working Capital loans also attach a fixed fee that is determined as a percentage of the loan principal and can vary. The fixed fee percentage depends upon the loan amount, annual level of PayPal sales of the business, and the repayment percentage.
Just like any other type of loan, PayPal Business Loans, can put a business in debt and at risk of failure. If you are a business owner who is currently dealing with any level of business debt, the process of pursuing debt settlement may make sense for you and your business.
At CuraDebt, we can help settle your business debt. This negotiated amount is agreed to by the creditor and is fully documented in writing. Though creditors are under no legal obligation to accept debt settlement offers, negotiating and paying lower amounts to settle debts is far more common than you may realize.
PayPal recently entered the business financing marketplace. At CuraDebt, we are proud to help those businesses that are truly experiencing financial hardship.
Our experienced debt settlement professionals have successfully negotiated business debt settlements for clients who truly were facing serious financial hardship and stress that have resulted in large savings on the total balance owed. Our team has an expert level of understanding when a business is facing hardship and can help get you to financial freedom. Contact us today to see if you qualify for business debt relief.
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