Working Capital Loan Denied

[robynnstorey]

I have been a PayPal customer for many, many years and run over $2MM in annual transactions for my small business through this account. They are the only payment processor we use.  We have successfully had and paid off over 800K in working capital loans, always paid early, always without issue.  During the past year, even with Covid, our sales have grown by 44%.  This morning, after paying off my last Working Capital Loan last week, I went in to apply for a new loan. It was immediately denied.  I called and was met by a very unhelpful PayPal representative who told me my business was not eligible for a working capital loan.  I asked how that could be...we have been doing business with PayPal for over a decade.  He had no answers, cut me off and was unable to tell me why I was denied.  We are all US based, rarely have payment issues and have been loyal to PayPal for all of our transaction needs.  I am disgusted and disappointed to be treated this way and have immediately started to look elsewhere for the capital we need to continue to grow our business, and will be looking for another Payment Processor as well.  It seems to me that PayPal has bit off more than they could chew with the PPP and other lending initiatives that they've committed to, and the loyal customers who do consistent and honest business are being left in the dust.

[bellybeans215]

Exact same thing happened to me this morning when I reapplied after paying off my 2nd working capital loan early. I don't have your volume of sales, but well within the criteria. My sales doubled each month during the months of March - May. No returns, no claims, I don't get it either. Trying to scale for the holidays, but I guess I will wait to see what the letter says for denial. Very disheartening for a small business trying to grow. 

[gringo333]

Please keep posting any updates as I am in the same nightmare question mation Point thanks

[PHLLC]

Same here.

I have had 9 previous loans worth about 225K and have paid them all back early. I have never had a charge back or any issues with my account. I am being denied because my business doesn't meet the "criteria points" for their loans. I did have a month where we were not allowed to work because of COVID so everything got pushed but ran over 40K in credit cards for April and May of this year. I don't qualify now? What the heck? There are more cost effective ways to run credit cards but I kept Paypal because of the Working Capital loans. So, they may lose my thousands of dollars of business I give them every year if it isn't available to me anymore.

Also, my loan was fully paid off on May 26th and it is still showing on my main page as an active loan with a zero balance. I don't think they have even closed it out all the way yet. I thought that was odd too. Usually it get archived with my other loans as soon as it is paid off. It's now June 22nd and it hasn't.

[gringo333]

Yeah! WTF is going on here! Too many belts are in the same boat and there's no answers other than algorithm and we can't do anything about it! Please keep posting update! Thanks

[Dav1111]

Me too, I paid off my 6th Loan on May 30th, mine is still showing on the PPWC page as £0. I have all but given up hope that this will be resolved. I have run out of options, have called, sent messages, tweeted, the whole lot - but DLGJ0710 refusal code signifies something and if I was told what it was then that at least would be something to work on/with or move my business onto another platform.

[Cascades2020]

Did you get your loan since June I just paid mine off and got denied for the first time after paying off 4 loans

[Bamabots]

I just accepted another PPWC advance after getting turned down for 3 weeks.

I'd been turned down because I had a recent history of  7-day holds for unusually high sales.  The last hold being 60-days ago.

PP keeps raising the hold threshold and sales keep blowing right past it with crazy growth.

PPWC offered me a very large loan at about 6% APR.  I was going to hold out to see if the next offer would be better but I was brushing up against the new PP hold threshold so thought I should just be happy with this.

I was really just interested in what kind of terms they would give me, I wasn't going to take another advance.  SURPRISE!

So I doubled my order of cast iron parts from Mexico (formerly China).  They knocked off 7% which will more than cover my loan fee so I consider this an interest-free advance.

[DanaH1]

I have had the same issue. Not sure what's going on. I was thinking maybe with COVID they think the loans aren't going to be repaid. But honestly I've made more money since COVID than I ever have. Literally April, May & June my sales have totaled $145k. I may be switching to Shopify. I heard they offer the same capital.

[robynnstorey]

Thank you for your message.  I am going to check out Shopify.  That is the third time I've heard they are good to deal with.  Thank you!