Paypal Working Capital Denied for #602?!

[User602]

"Our records show your business falls into an industry category that doesn't qualify for PayPal Working Capital"

Has anyone had this problem? I have paid off 2 successful WC loans and was excited to apply for a new one for my business. I was shocked I was denied (paid off the second, of the same amount, in half the time!) and every time I apply I get this message. I called and was told that I should try in another week, that perhaps my information needed updating in what category I do business in? But the last 2 loans were no problem at all?

Has anyone experienced this or know how to repair this issue?

[hydn]

Paypal already meet and exceed their own targets for WC. Opting to go elsewhere does not hurt them really because there's plenty of Businesses looking for capital and their sucessful repayment rate is most likely much higher than most. Thus why you can pay low interest and in a very convenient repayment method. In my calls to Paypal, they were very helpful I spoke to two differn't people in 2 days. I also received a phone call back when to try again. I was couteous, respectful, extrememly detailed and didn't mention our 4 previous loans as if to say they owe us a thing.

[PPSavesLives]

I'm not suggesting me leaving PayPal will hurt them in any way.

My post is just reminding people that there are alternatives. Personally, being denied our 3rd loan very nearly crippled our business. And like others on here, there is nothing more frustrating than being told by a computer "no" and then human beings not being able to understand why, and not being able to do anything about it. PayPal have to offer WC in this way otherwise it would be a "loan".

When I called the bank, I spoke to a person, who listened about my business about our plans and goals, and then made a decision. In doing that, we also discovered alernative payment systems that will be much cheaper (half the price) than PayPal. Now, we are not tied down to PayPal either, as we were when our WC was active. We really liked the WC system, and would have used it again. But it has some serious flaws. 

It turned an awful situation into a positive one. For the record, my credit file is awful and the business has not had any credit before. I was quite shocked they went with it, but they did. If people have a business account, have had it for at least a year, and money goes through it, I would highly recommend talking to them. Either way, you will get a clear decision. No "error messages" that seem to be incoherent. 

[Guamsst]

Just more of the same old pathetic incompetence of the ebay/paypal monster. They treat sellers like slaves. They have minions who know nothing, but can eventually be contacted.... so they can tell you in person that they are clueless.

I deal in antiques too and just got the "602" message. Frankly, I'm more than a little annoyed. I travel and I work hard to get inventory. I list on ebay and they take a cut, then paypal takes a cut. Then when I apply for my third WC loan (and offer them yet another cut) I get a BS error message.

[User602]

I have tried for weeks and still get denied. Very dissapointing. I paid off my last loan early just to take advantage of this again, was counting on it, and denied.

[vtwiccan]

I have applied for and been approved for EIGHT loans that have been successfully paid off in full. I was just declined for a new loan due to "industry changes" which makes no sense to me. Nothing has changed with my business. I am VERY unhappy with this! How can they make these changes and not notify us? The whole application changed--and the industries they have listed are kind of vague. Nothing even close to what my retail industry is. I called the number they provided and they were not help at all.  Just told me to keep trying??? I was really counting on another loan to help with the upcoming holiday buying season. Seriously disappointed with this.

[Dino68]

I am on my 3rd PPCL took 14k end of last year. But I wont take another one as dont need it now. So happily repaying it back daily. Its been really helpful and works perfectly (when you get approved) thing is people need to understand its not an automatic right and I would never rely on a loan application coming through for the stability of my business. Even if you have had numerous paypal capital loans does not give a business an entitlment for further loans. Its there actually to build business not shore a buisinss up.

I know from a partner that in the UK anyhow the way they are loaning money now has changed. The higher amount you borrow the higher the daily repayment. My friend took the highest amount but had to aggree to 20% of sales paid back daily. Not something I would do. But it is changing. Its a great system for sure ... but not one I think will remain as easy as it has been. Expect more declines  no matter how robost your business is.

I will be glad when this one is paid off 🙂

[APT1]

We're in the exact same boat as it unfortunately seems that many of you are. When we first created our business account way back in the day, the business categories were very limited, and did not accurrately reflect the nature of our business. We opted to select the closest category. We have since been approved for, and paid off, three separate (very high) WC loans, and just went to apply for our fourth one earlier this week. We received that message about the category not being eligible. So we called Customer Service, and were told that they recently updated their category options, and that some of the categories that were previously eligible, no longer are, and some of the categories that were previously ineligible, now are eligible. However, there is absolutely no mention of this anywhere on the PP site. And Customer Service refused to inform us which categories were eligible and ineligible, even after I explained that our category is not an accurrate reflection of our business. Their system apparantly also automatically added a subcategory that again, is not accurrate - we did not add that particular subcategory, nor did I even know you could do so. Customer Service suggested we opt for the category "Retail, not elsewhere specified" and rather than have us change it ourselves, she insisted that PP would do it for us and it may take until next week to complete. She did not even assure us that that particular category would qualify for the WC loan. We are so incredibly frustrated with the lack of information PP has provided, and the fact that they feel it's appropriate to change their policies without properly informing customers - if anyone has seen any kind of information about which particular categories are not eligible, PLEASE let me know! I would really like to review it. It's an incredible disservice to us folks who have been using WC basically since it became an option, and it's very disheartening that PP refuses to provide a clear solution. We're extremely dissatisfied, as I'm sure many of you also are. Fingers crossed that changing the category will help our situation.

[robinson1322]

Were yo able to figure out a category that was eligible and get the loan?