Paypal Working Capital --- Online Application Not Working

[BBFYM]

Anyone else having a problem with the Paypal Working Capital online application not working.  I have filled out the form completely only to click the "View my offer" button to be told that I need to fill out the form completely.  I am completely dumbfounded by this as I am an IT person by profession and Paypal won't return any of my requests for help with this issue.

[HurleyByrd]

Okay.... here's a strange one. I do roughly $50K a year and have held my sales at this level for a while. Applied several months ago, denied.

Then, I closed my facily for shop improvements, etc and was closed for 6 months with near zero sales. I then reached out to a handful of customers with old design product and seconds, sold a few thousand and then no sales for about a month. I applied................ low and behold........ instant acceptence. LOL 

I got $2500 and used it for various business needs and then reopened for business a month later. Am paying it off at the 15% level and in a month's time am nearing 50% payoff.

If you look at this and have some sort of revolving credit......... this money is very expensive. I'll pay 8% on the $2500 and have it paid in under 1/4 year. AKA...... APR 32%........... that is VERY expensive money. You could get a Capitol One card and be ahead.

Just my two cents.

Peter

[mpishone]

@peter  What was your fee for $2500? Mine was about $62.00 and 20% (within 2 months). I was trying to figure out what kind of an interest rate that would be if it was a credit card but I wasn't sure how to figure it out. Could you help me?

[HurleyByrd]

You received a very cheap fee, less than I could have received. I took the 15% payback and my fee was $197. If you take the fee then divide it by the funds received multiple by 100 it will equal the % of the fee. As an example.... 197/2500 = .079 x 100 which gives a result of 7.9%. Now take the time it will take to pay it off. I my case about three months. Soooo... take the 7.9% fee and multiple that by the time in relation to a year. In my case again.... 3 months divided by 12 months (3/12  = .25) and divide that into the 7.9% (7.9 / .25 = 31.6%. The 31.6% is your Annual Percentage Rate or APR.

In your case, 62 / 2500 = .025 x 100 = 2.5% fee. Take your two month payback divided by 12 months = .167.  Take the 2.5% fee and divide by .167 = and your Annual Percentage Rate is 14.97% 

If I were you, double check your fee. $62 seems really low but then again they may be offering different people different rates. Mine happen to be a 7.9% fee at the 15% payback amount.

[mpishone]

Thank you so much ... I did think it was pretty good but I wasn't 100% sure ... couldn't figure out the APR number.

The rate is correct. I've been reading other people's comments and saw one fee for someone that seemed incredibly high!

Your fee seemed really high too. I'm wondering what factors they are taking into account ...

For myself ...

I've been in business doing online sales for almost 8 years. It has been a VERY part time thing for me. My sales have continually grown over the last 8 years starting at about $12,000 my first year, up to about $85,000 for last year. There was only one year where my sales dropped by $18,000 (due to my regular job's work schedule and I was unable to work online as much). But other than that it has only grown ... slow ... but it has grown.

I only use paypal so all my income for the business has been recorded through them.

I use a Paypal debit card for all my business purchases.
I never transfer my money out of my paypal account as I have complete access to it using my debit card.

I have had very few credit card disputes and the one or two that I did have, I accepted fault (as it really was my fault).
There are not any other factors I can think of that might have made a difference. I was shocked to see some of the other offers with such high rates! I can't help but wonder what was taken into account when my loan was offered to me. (I only accepted $2500 of the $6000 that was offered).

It will be interesting to see what happens after I pay off this one and if I will have trouble like so many others have mentioned.

I'm thinking now ... maybe I should have borrowed more when I could have! LOL ... we'll see how it turns out for the next one!

Thank you so much for your help ....

Annette

[HurleyByrd]

That's good info Annette,

  My story is a lot like yours but I've been selling through PayPal with one business website for more than 12 years. In 12 years, I've had 5 chargebacks, my fault. But I hold my sales around the $50k mark as I keep a huge percentage for myself and operate everything alone plus I have another business I run locally in the slow months and do so on a mostly cash basis or use the Virtual Terminal.

I have no idea why they charged me so much. I suspect it may have been the previous 6 month closure or seasonality or ???

Good luck on your continued growth.

Peter

[ptlinva]

I've just completed my 3rd PayPal loan.  It's worked great for me and with some damage to my credit report rating, the PayPal Working Capital loan just looked at my PP cash flow and approved me.

Each time I've gotten a loan, they increased the offers.

However, as I went to apply for my 4th loan, I'm now receiving a message stating that "There was an error".

I've called thier support line without much success.

I wish you the best with your decisions/loan.  It's worked out great for my small business!

Your friend in Virginia,

Paul L.

[Jakesinc]

12/19/2014, 12/22/2014 -   Paypal Working Capital --- Online Application Not Working

Called phone number was told it's not working and tech support is working on it...best answer was to try again every 3-5 days. 

Why, if Paypal knows this feature is not working would their website let me get 90% down the path of attempting a loan to only fail on the end?

I get an E-mail or two every week offering this service and decided it fit an inventory purchase need.. and fail. 

Ugh. 

[65536]

I got $20000 loan several times. Never rejected. My fee is typically $162 and can go up to $200 something sometimes. I was paying 30%. Typically loan paid in 10-15 days. Called PayPal why $20000 is the max I can get. Was told this is the first year, $20000 is the max they offer to anyone. Will try again in 2015 to see if I can get more. According to the descrption, if I can get 8% of sales. I should be able to get over 200k. That will really help me. Keep working PayPal!

[HurleyByrd]

I don't get this. By the numbers you shared, you are running $1.2M a year in sales. Why in God's name would you be wasting your time and money with this program. Personally, I feel you should be using your time and managing your business far better utilizing a solid and completely fulfilling banking instituion.

Just my two cents.

[65536]

Aren't all the traditional loans require 3 years of tax history? My business is about 2 years old. Also the PayPal WC seems to be really simple and straightforward. $20000 sometimes can help me. My supplier requires me to have a minimum order of 100k to get better deal. I sometimes just cannot wait a few more days to place the next order.