What is PayPal Working Capital and how do I apply? (2024)

FAQs

How does PayPal working capital work? ›

PayPal Working Capital is a business loan with one affordable, fixed fee. You repay the loan and fee with a percentage of your PayPal sales (minimum payment required every 90 days). There are no periodic interest charges, monthly bills, late fees, pre-payment fees, penalty fees, or any other fees.

Am I eligible to apply for PayPal Working Capital? To be eligible to apply for PayPal Working Capital, your business, at a minimum, must: Your business has had a PayPal Business account for 90 days or more.

The PayPal Working Capital business loan is primarily based on your PayPal account history. Apply for $1,000-$150,000 (and up to $250,000 for repeat borrowers) with no credit check.

Yes. You are welcome to make additional payments or even pay the loan in full with no early repayment fee. You can make manual payments at any time from the PayPal Working Capital Dashboard. Payments can be made using your PayPal balance or linked bank account.

But if you do get behind, you can make additional payments on the PayPal Working Capital website. If you don't meet the minimum payment requirement and your loan goes into default, your entire balance could become due and limits could be placed on your PayPal account.

Upon approval, PayPal Credit customers will be assigned a credit line of at least $250, based on credit worthiness. You can confirm your credit line details by logging in to your account.

If approved for a loan, the process is easy: Select your loan amount. Maximum loan amounts vary based primarily on your PayPal account history. Choose the percentage of your future PayPal sales that you want to go toward repayment of the loan amount and the loan fee.

Working capital is calculated by subtracting current liabilities from current assets, as listed on the company's balance sheet. Current assets include cash, accounts receivable and inventory.

Why is PayPal declining? ›

Contact your card issuer or bank for more information. Your card details are outdated. Update the expiration date or billing address associated with your credit or debit card. Your PayPal account is limited.

Paypal working capital pros and cons

No credit check and no personal guarantee required. Fast access to funds. Eligibility for additional loans after repayment.

PayPal Community

Cash advances are extensions of credit made on the account when you use Send Money to transfer money to friends or family members (not to or from a business) without a purchase. You may not use the cash advance feature to Send Money to yourself.

With PayPal, you receive money when someone pays to your email address or mobile number. Once that happens, we'll send you a message letting you know you have money available. You can access the money you receive on your PayPal account home page.