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Shocked!!!! Warning to others about Working Capital


Shocked!!!! Warning to others about Working Capital

I am absolutely shocked, we have applied for and received 6 loans through working capital over the past 3 years and this past December 2017 we applied and were approved for up to $93,000.  Thankfully we didn't need that much and only took $10,500.00, we only take what we need.  On that loan as well as ALL of the others we paid it off early, in less than 2-months.  

Today I went and applied and was denied and that's not what shocks me its the reason we were told that we were denied.  Okay are you ready for this, drum roll please............ Working Capital is not currently working with our industry!!  Seriously I was told that at random Working Captial decides not to work with certain industries and at this time they are not working with anyone that services or repairs medical equipment.  I hope its not your industry they decide not to work with next.  Wow it must be nice to be so big that you just decide you know lets work with only lawyers this week and with those in electronics next week, etc.  We processed over 1/2 million dollars with paypal last year and even started running our credit card processing through them and this is the thanks we get.  The personal service we get is for some kid named Joey to tell me that he understands my frustration but its not a decision that can be overridden.  WEll guess what Joey, I've decided that we will no longer process our credit cards through paypal and we will divert as many sales as possible that go through eBay to credit cards or even checks.  This is outrageous.  Tell me sorry sir you haven't been doing as much business or we're not handing out any new loans right now but "we're not doing business with your industry today".  Oh BTW Joey assured me that he was sure I would get approved soon if I just keep resubmitting my application every 48-hours because the industries they do business with change daily.  


I would love to hear from some paid voice at PayPal to explain this one where everyone understands.  In the meantime I'm gonna make sure as many other people know as possible through social media, that's my rights.  Let me guess you're not accepting complaints from people with this particular problem today so we can't post your complaint.

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Re: Shocked!!!! Warning to others about Working Capital

It all comes down to risk. If you were loaning out tens of thousands, hundreds of thousands, millions of dollars to people over all, you would have rules in place to help make sure you will get your money back.

There must be something happening within that industry that is causing the risk factor to go up lately. Even if you personally have a great track record with PayPal, the risk factor associated with a given industry could very well override that.

Of course this is definitely frustrating, but I would try to remain calm and consider everything involved here. PayPal has lots of different products, and they are not related. Payment processing with PayPal wallet and credit cards is one thing, and loans through Working Capital is another thing entirely.

If you're unhappy with one particular product (or can't get what you need with it) then obviously you can look for that service through competitors that might be able to suit your needs a little better. Don't be surprised, though, if you find that similar policies are in place elsewhere, or maybe interest rates are quite a bit higher if they will give you the loan.

Moving your payment processing business away from PayPal is your choice, of course. I would warn that doing so because of your frustration with a separate issue could end up causing you more pain down the road. Lots of people prefer to pay with PayPal, so if you don't offer it you will lose sales. That's pretty much a given. Other credit card processors will nickel and dime you with all sorts of additional fees like PCI fees, statement fees, mid or non-qualified transaction fees, and a lot more. PayPal keeps all of that simple with one flat rate, and at your level you'd be getting a very competitive rate (probably 2.2% for credit cards.)

If you move that way to another processor you'll lose sales by not having PayPal as an option, your rates will almost certainly be higher, and your accountant will have to manage more accounts than they are now which can be additional time/cost as well.

So again, you can do whatever you want, of course. I've seen this in the past, though, and people end up coming back to PayPal because they realize how well it actually worked for them when compared to other options.

Angell EYE -
PayPal Partner and Certified Developer - Kudos are Greatly Appreciated!