What do you think of PayPal Working Capital?

Sweet3st on 15/01/2015 - 19:32

Just received an invite from PayPal to avail myself of their new 'business loans' scheme. Interestingly, they assess how much they will lend you based on your sales activity with them, then basically you get the funds pretty much instantly. Rather than interest and ongoing fees, there is just one upfront fee you agree to as part of the offer. You pay back the loan as a % of your PayPal sales. No sales, no repayments. Interesting idea. Have been trying to crunch the numbers and it seems to me like a fair offer. Plenty of PayPal haters out there, but my experience is that they're quick and usually hassle free compared to banks. Interested to hear people's thoughts. https://www.paypal.com/au/webapps/workingcapital/

Financial

Related Stores

PayPal
PayPal
Marketplace

Comments

  • [Deactivated] on 15/01/2015 - 19:45
    +1

    There will be a catch somewhere.

    What is the benefit to them giving you money?

    • Jam0864 on 15/01/2015 - 19:59

      "…there is just one upfront fee you agree to as part of the offer."

    • Sweet3st on 15/01/2015 - 20:05

      They argue that by advancing capital to businesses, the businesses will make more sales, and so PayPal will get more income from fees on sales.

      • [Deactivated] on 15/01/2015 - 20:11

        Sounds fishy, how much are they offering?

  • ozhunter on 15/01/2015 - 20:10

    How much is the upfront fee?

    • Sweet3st on 15/01/2015 - 20:40

      It depends on the % of sales you agree to use to repay the loan. 30% gives you the cheapest upfront fee. I think for me, if I borrow $2,000 and repay at 30% of sales, the fee was $85. My sales are modest and seasonal, so that might still take 6 months to pay off. I would say it's somewhere between a bank loan and credit card.

Login or Join to leave a comment
Login Join