PAYPAL WORKING CAPITAL DENIAL FOR SECOND LOAN

[waterworking]

I was invited to use Paypal's new Working Capital Program. I at first was a little unsure but thought I give it a shot and borrowed the minimum which was $1000 just to see if it was what they said it was. I got the loan 5/18/2014. I paid the loan off everyday as stated and then on 5/31/14 I paid the loan off completely. I tried for a second loan and was denied. Has anyone else had this issue and have you gotten a reason why you were good enought to loan the first time but instantly turned down the second. Makes no sense. Please help

[jadubb37]

I applied at the end of June 2014. Was approved for $9000, which PPWC stated would take me 3 1/2 months to pay off, based on my previous cash flow. I paid it off in 6 weeks. Today I applied for a second loan...DENIED!

[JStead1]

ppwc,,,,, I got my first for $15000 approved no problem, paid it off, Second I got $12000, Paid it no problem.

Went for a third,,,,, DENIED!! No charge backs, no complaints to date.. I dunno what that's all about.

Really is Unfair when you do the right thing and expect them to work with you.

[PayPal_EJ]

Hello everyone,

I just want to address a couple of the comments on this string and provide some clarity.  I know it can be quite confusing and frustrating to find out a loan application has been denied after your business had been approved for a loan in the past.

In regards to the collection of Social Security Numbers-- This is something that WebBank (the lender) and PayPal (the servicer) are required by law to collect and is for the purpose of verifying the identity of the customer. Neither WebBank nor PayPal is submitting or sharing this information with any credit bureau or similar type agency.

Regarding declines… because PayPal Working Capital is a new product, we are frequently updating and testing new underwriting criteria to see what makes the most sense. We are aware of the recent increase in declines and are working through ways to improve the underwriting process to address the concerns being raised.

As far as decline letters go, they will be received within 30 days but are typically received within 1 to 2 weeks. The envelopes are plain white and are addressed from P.O. Box 5018 Timonium, MD 20194. There is no PayPal or WebBank logo on the envelope but the letter will be addressed to the recipient from “WebBank c/o PayPal Working Capital”. As SELLERTIME [user name] noted, you will receive a letter for each and every time you apply. We’re working on ways to improve this experience and save some trees in the process.  

Thank you for participating in the PayPal Community and for your patience as we refine and improve PayPal Working Capital. It is our goal to provide fast, easy and fairly priced access to capital that works for you and the unique needs of your business.

- EJ

[Starcher]

EJ...I understand their policies...however, there was absolutely no reason to decline the same loan 2nd time.  Our business have absolutely no issues, loan amount was less than 15% of monthly revenues and we have an excellent track record.  Whoever is doing underwriting, perhaps need a 101 lesson.  So, there is much more at play here than just decline based on the comments from other posts on this site. It was a good option for small businessess, but some things are too good to be true...

[temp20190509ai]

Thank you Ej, for making it clearer. The last  customer rep I spoke with on the WC line was also very clear and professional. I appreciate it,  and the opportunity for the loan! 

[Guildbros]

Thanks EJ. Makes total sense. I've had very good experience with this program so far. It's quick--painless--and convenient. Hope things even out before I re-apply in Jan,

Bob

[flashkaz]

Thank you for posting and we really hope it is worked out in time to buy for the holidays! Your product is so much better than Kabbage.

[jbideas]

Thanks for responding.  But it still doesn't clear up the issues.  You basically have willing customers whom you can track sales on and demand better payment terms than any other lenders.  I mean no other lender stands by your side and gets their cut with each sale.

I don't mind that when it's clearly explained.

But why aren't you so clear about REPEAT business.  I mean if you grant a loan and the borrower performs as agreed or even better and applies to give you money again why cause them frustration?  

This is the greatest legal money making operation in the loan business.  You have the history you have the payment terms and you have motivated borrowers who don't want to do anything to jeopradize their paypal accounts.  

Why not treat us like truly valued customers and don't send us to your competitors.  I don't want to give Kabbage or any similar businesses my money if I can deal with Paypal in such a clear manner.  But this is truly frustrating to have taken a loan and paid it off early and then treated like we did something wrong.

[mn1111]

We just got denied for our second loan too.  Applied in the middle of June, got approved for 20K and paid it off in 2 months with no issues except for the well publicized glitch they had back in July (otherwise we would of paid it off a week sooner).  When I called the working capital number, they said they couldn't see any reason why it would decline and to try again on Monday.  I would think we would be considered low risk as my eBay account is 13yo with top rated seller status and over 63k feedback.  Hopefully they loosen things up soon as it is a great program. 

I had about 30k worth of designer winter boots on hold for the fall season I wanted to pick up and will have to release them back if we get declined again on Monday.  Funny as if they approved this last loan, eBay/Paypal would of gotten at least 5k extra in fees from us over the next two months not including the loan fee.

We got approved for 30k through Kabbage, but their rates are no better than a loan shark so we will only use it as a last resort if we are short at the end of the month and need to cover outstanding invoices and pay it back in a week or two.  I'm so bummed about the paypal decline as the rates were super reasonable.

[JRockey]

We too were denied for what seemed to be a no brainer for a third loan. After two 20k loans that were paid off between 45-60 days I was a bit thrown back to be denied. Maybe the underwriting software places too much emphasis on things that are not indicative of worthiness to pay off another loan. After all, we are the same exact business that successfully paid off our first two loans. In fact we are on the heels of our best 2 back to back months, partly because of the equipment we were able to purchase with our first two loans. Our feedback has gone from 99.8 to 100 and there is plenty of inventory to purchase but cash is tight due to the fact that we bought a larger building for our growing business. Who at PayPal can help us with this issue?