Working Capital 4th loan application denied with error code 650. Does anyone know why?

vrdr1981
Contributor
Contributor

Hello all,

 

I am trying to apply for my 4th PayPal working capital loan and am not getting approved. I had 3 loans within the past year and a half and paid them all off ahead of time. The last loan I had I paid off 2 weeks ago and used few thousand dollars to bring it to zero balance. I thought I will get approved right away just like all the previous loans, so I could buy new inventory but I keep getting an error message 650 😞 If I knew I would not get approved I would have used the cash I had to buy new inventory instead of paying the loan off early 😞 I called and they keep telling me to try more so I have been trying every single day. I really need to get restocked because less inventory I have less sales I am showing. 

 

Please let me know if anyone has any suggestions. 

 

Thank you

 

Veronika

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34 REPLIES 34

RonnieG
Contributor
Contributor

Another consistency that I have found is that working capitol loans you 25% of your sales over the past 3 months. For example my first loan was $2500 my income for those previous months was $10,000. My next loan was $5,500 my income for those previous months was $22k and some change. 

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autumncrest
Contributor
Contributor

Today I added funds to my PP balance to pay of my Working Capital loan.   There was an issue with availability of funds so I had to call.  The Working Capital loan dept took my call and BEFORE we had fixed the availability issue, the rep said "to let you know, there is no guarantee another loan will be approved. We are using new algorithms."   I said this was my 4th approved loan so I didn't see that there should be a problem since my sales have increased 15% each year since doing these loans, starting in 2014.  He implied I shouldn't be so sure. I thought the conversation was odd.  In hindsite, I just applied for my 5th and was declined.  So he knew I wasn't going to be approved before I had even applied!!  Seems very suspicious and now after reading this thread and the issues folks are having, something seems very wrong. We were invited to this program at it's inception and seemed a win win for both parties.  Now, the rug is being pulled out from under us without any warning and at risk to our business'.  So very dissappointed.

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RonnieG
Contributor
Contributor

Hello. Just to let you know Paypal is using a new algorithm. Your annual sales do not matter. They now approve loans based on the previous 3 months. We are in December right now. So they are looking at September, October and November. If your sales were lower than average on either one or all 3 of those months you will be denied. Keep applying everyday you ave unlimited chances. I applied 10 times a day until it went through a week later for a small amount.

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RonnieG
Contributor
Contributor

@autumncrest wrote:

Today I added funds to my PP balance to pay of my Working Capital loan.   There was an issue with availability of funds so I had to call.  The Working Capital loan dept took my call and BEFORE we had fixed the availability issue, the rep said "to let you know, there is no guarantee another loan will be approved. We are using new algorithms."   I said this was my 4th approved loan so I didn't see that there should be a problem since my sales have increased 15% each year since doing these loans, starting in 2014.  He implied I shouldn't be so sure. I thought the conversation was odd.  In hindsite, I just applied for my 5th and was declined.  So he knew I wasn't going to be approved before I had even applied!!  Seems very suspicious and now after reading this thread and the issues folks are having, something seems very wrong. We were invited to this program at it's inception and seemed a win win for both parties.  Now, the rug is being pulled out from under us without any warning and at risk to our business'.  So very dissappointed.


Hello. Just to let you know Paypal is using a new algorithm. Your annual sales do not matter. They now approve loans based on the previous 3 months. We are in December right now. So they are looking at September, October and November. If your sales were lower than average on either one or all 3 of those months you will be denied. Keep applying everyday you ave unlimited chances. I applied 10 times a day until it went through a week later for a small amount.

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Whac-A-Mole
Frequent Advisor
Frequent Advisor

You guys must know the Fed will keep raising interest rate.

 

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