No working capital loans if you have ebay

[economycycle]

So got the call from paypay telling me i'm in default becuase ebay transferred to managed payments and sends payments to the bank instead of paypal. My ebay sales are a very small % of my total revenue and 98% of comes from my website and I'm way ahead in my repayment schedule anyway but they don't care and want to convert me to a fixed monthly payment. ebay doesn't give you any other options so I am i right to assume that if you have an ebay account you are no longer elidgeable for a working capital loan?

Did anyone at paypal or ebay think this through???

[Everythingstore]

Hi I think you are wrong. If you have a website that processes payments with PayPal your loan will not go into default and you would still be eligible for working capital. This is my understanding I’m in the same boat as you.

[economycycle]

That's certainly the logical answer but I was told not so yesterday by a paypal representative. I was told we have 2 choices, either restructure the loan or close our ebay sales channel, both of which are punitive. I don't think anyone at PP thought this through, only about 2% of sales come from ebay the rest from our website and we're way ahead on the repayment schedule. Where did you hear/get that information??

thanks for your reply 

[xwindowuser]

"We have been trying to reach you to let you know that the Terms and Conditions of your PayPal Working Capital loan are not being met and your loan is in default. Please call us a[Removed. Phone #s not permitted]Monday through Friday, 8AM – 8PM ET at your earliest convenience.

In your loan’s Terms and Conditions you agreed that your processor would not change from PayPal to another entity, but with eBay managed payments, eBay is managing all eBay payments through another entity. You can review the full terms of your business’s loan in your PayPal Working Capital dashboard.

We understand you may have not initiated the move to eBay managed payments, so, we’ve recently introduced a much wider range of flexible and affordable repayment programs that will restore your loan’s good standing. For most borrowers, these new programs allow them to pay a smaller amount than what was normally paid with a share of sales each month.

To understand all your options, please call us a[Removed. Phone #s not permitted]Monday through Friday, 8AM – 8PM ET at your earliest convenience.

Sincerely,

The PayPal Working Capital team"

[ihostdev]

got the same email today and several weeks ago. Searched the phone number since the email was from paypal@ <removed>.com which isn't the usual email sender and the phone number doesn't come back as a paypal working capital number nore is this the number listed on their contact us page. So i never spoke to them assumed it was spam.

I would not agree to change anything. They would have a tough time fighting this legally when everyone was emailed months ago when covid started and they suspended payments. The end spoke of ebay managed payments and to continue making the min repayment to stay good.

"

When PayPal brought our PayPal Working Capital offering to market in 2013, business owners welcomed it as a revolutionary financing solution, unlike anything available at that time. Seven years later, we continue to enable access to business financing that our customers appreciate for its fair, transparent pricing, simplicity, and speed of access to capital. Currently, we’re developing the next generation of PayPal Working Capital – a set of new, innovative features that will serve your needs as your business continues to evolve. These new features will address the rapidly evolving commerce ecosystem and provide support for merchants who choose to sell goods across a variety of platforms and marketplaces. We are excited about what the future holds for PayPal Working Capital and will share more details as we roll out new features in the coming months.

In the meantime, if you think your PayPal sales may not be enough to meet the minimum payment required under the terms of your loan, please remember that you have the option to make payments from the funds in your PayPal balance or from any verified bank account in your PayPal wallet. You can check your minimum payment requirement by logging into your PayPal Working Capital dashboard. From there, you can schedule one or more  payments by clicking “Make a Payment” and following the instructions provided.

We are working hard to ensure you feel supported through this period of transition and appreciate your business. Thank you."

whole email can be read here: https://newsroom.paypal-corp.com/Open-Letter-to-PayPal-Working-Capital-Customers

And here is a screen shot of the FAQ on paypal working capital saying this in more detail.

So as far as i am concerned as long as i am making the min 90 day repayment amount we are not in default. Funny that our loan we have repaid 85% already in half the time it was estimated and usually triple the 90 requirement and they still try and say we are not meeting the agreement.

[economycycle]

Yes that's basically what they told us when we spoke with them last week. As long as you're meeting the repayment schedule they will take no action. Thanks for your reply.