working capital amount calculated based on what?

[vbastiurea]

Hi, I had till now 5 working capital of total of 9.5k, my annually sales go to 48k, last one I borrowed was of 3k, as paypal say the maximum should be 30% that would mean around 12k but never had this offer when I applied, recently I got on my account the ''Funds Now'' because: ''You have happy customers, a good track record with PayPal and we have the information we need to keep your account secure. In other words, you've got an excellent history with PayPal. Keep up the amazing work.''. Will this maybe contribute to the working capital as well? I'm planing to expand my business and a higher amount would be great but an expansion with 3k is not helping me very much, when I apply what I need to choose to have a better offer? for stock? for expansion? which gives higher amount? What should I do to improve the amount I can borrow? Thanks

[teger_1]

Yeah you are right, happy clients, many different clients, low charge backs, and then yes about 30% of your yearly turnover.. but there is one thing most don't think of, the "affordability calculation". It has to be in the algo that calculates this too..

So how to raise it? Pretty simple actually, leave more money in your Paypal account, so simply increase the average balance of money you have available in the account at all times.. this shows affordability..

hope that helps