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PayPal Working Capital lent $1 billion in 2 yrs

By Chris Dawson October 27, 2015 - 7:35 pm

PayPal, through PayPal Working Captial has lent over a billion dollars to around 60,000 small businesses since they launched PayPal Working Capital in September 2013.

That’s not only one heck of a lot of money, but it would appear that their loan book is increasing with half the money loaned within the last five months and they’re currently extending $100 million per month of new finance.

Small business loans kicked off with companies such as iwoca and ezbob lending based on a seller’s eBay and Amazon turnover. Since then PayPal and Amazon have both launched loan products, although on different terms.

Amazon and PayPal prefer to be repaid at a set percentage of your earnings, but the limitation is that they’ll only offer loans based on the turnover that they can see. Companies like iwoca and ezbob will take a wider view of your business looking at your eBay, Amazon, PayPal and bank account income when assessing how much they’ll loan, but repayments will then be a regular monthly amount which will suit some, but may not be as convenient if you have swings in your business income.

iwoca have also branched out as a mainstrem small business loan lender to businesses which don’t traditionally trade on the web.

PayPal’s news showing the huge demand for small business finance shows no signs of slowing down. PayPal Working Capital operates in the US, the UK and Australia and will appeal to businesses who don’t qualify for traditional loans or who are looking for small amounts which frankly involve too much time and paperwork for a bank to bother with.

By the time a high street bank approves a loan it’s often too late and the business opportunity has passed, and that’s why PayPal Working Capital and their competitors are winning so much business.

  • tinker
    1 year ago

    we have used paypal working capitol and we think its so good, were thinking of using it rather than our bank overdraft

  • dennis
    1 year ago

    Sounds like PayPal is making a Huge mint out of all this, I bet they hardly miss a few million now and then

    • toby
      1 year ago

      They are. People that use it must have never figured out what the actual interest rate the “low fee” is. It makes cash advances on credit cards look like a great deal

  • Derek Duval
    1 year ago

    For a new Businesses like ours who cant get funding from a Bank because they dont have 2 years of history its not to bad…Anyway just claim the interest charged from HMRC on tax returns

  • Chris
    1 year ago

    The amount of emails/calls we’ve had from IWOCA is frustrating.
    No idea how they got our details.

    The PayPal working capital – what do they charge you? %

    • tinker
      1 year ago

      depends on % you agree to pay back and how much you borrow, though its around 6%

    • paddy
      1 year ago

      We have had a few calls as well. I can only assume that they have taken the details from Ebay listings.

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