Purchase inventory with PayPal Capital during covid 19

[Lovetsa]

Hi, my business depends on PayPal capital every time it comes to purchase inventory. I took a loan out abt 2 months ago purchased my inventory, And I am on track paying the loan off in 14 days. However, I am debating if I should pay PayPal working capital off in lum sum and get a new loan or should I just take the advantage since PayPal s suspending the repayment of the working capital for 30 days and use my extra fund to purchase the inventory first. The reason is because I heard PayPal working capital is suspending new loan application due to the covid 19, is this true? I took 2 loans out and paid them within 3 months, I need some advices since this will definitely help to grow my business during the time being, and having inventory will definitely help me in the long run. Thanks in advance

[BMI1]

Hey Lovetsa,

I can not advise you on what's best for your business but I can share my experience. We recently paid off our paypal capital loan end of April 2020 in order to reapply for another loan for inventory expansion. I called and confirmed that they were still offering Capitol loans during the pandemic and was told " Yes, we are wanting to do more loans to help small business in these times". Once paid off and cleared, we reapplied for now our 9th capital loan (all paid back under 1 year time) and were denied. 

Upon speaking with a representative, they claimed our sales spiked a couple weeks during the middle of the covid-19 awareness which the system picked up as inconsistent sales. This is irrational as our per 90 day pay back review showed consistent sales and ahead of schedule repayment. They have changed their algorithm for loans to a strict and seemingly impossible new loan access due to financial climate today. We never would have paid the loan off during a non-repayment period that paypal put in place if they didn't blatantly lend false information. Beware. 

[Lovetsa]

Thank you so much for the information, to be honest, my sales is actually doing well during this pandemic, since ppls are sticking to online shopping than doing a face to face transaction, we had a meeting to go ahead and purchase the inventory that we need first and put a hold on the repayment. We took a 8500 loan in early March, and we only have about 1500 left at 30% rate, it will just destroy our streak if PayPal working capital not willing to lend another loan, we are still committed to make a small 50usd daily until it paid off the next 30 days and hopefully we will have better news in June. God bless you, your family and all the best to your business! Thanks for the sharing again

[Kaybee4577]

I imagine you’ve already decided what to do long ago but wanted to add, we paid off early in a lump sum after being assured by PayPal they were still lending and had not made it harder to access. Have always been approved for a new one right away. Have now been trying for a week and denied every time. I wish they would be more transparent. It’s unfair to leave people hanging, constantly applying etc and looking at how to get their PayPal stays in a favourable position if PayPal just aren’t lending regardless. People could go elsewhere if PayPal would just be upfront.