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

[alanmaier]

Great for you!!! Let's hope the holiday season cheer is contagious 

[1Undrpyd]

Took My first loan. 3500.00 No charge backs. Perfect record. Paid it off in about 81 days.. Paid the last payment out of my pocket to apply for a second one knowing we are getting ready for Christmas, Could use the extra money to get extra inventory. 2nd LOAN DENIED. No reason. Letter in the mail. BOLOGNA is what I say

[cVseller]

I was worried after reading all this, but I paid off a $2,000 loan on Sunday and got a new $2,000 loan on Monday with no problem. I just did 10 percent repayment both times. This will give me the boost I need to keep building my business without cutting into family funds.

[flashkaz]

I tried again yesterday - twice - and denied. I thought maybe some of my answers were slightly different - like selling category, etc., but that doesn't seem to be the problem. Unlike everyone else, I have not even recieved an email let alone a letter telling me why I was turned down. I only get the denial screen. I have to make a major annual purchase for my business and I guess I'm going to be borrowing from Kabbage or using my credit card. I'm sad about it because I love the ease of payback with PayPal. 

[Nascarr24]

I have received my denial letters. The reason I am being denied is because I had an account restriction placed on my account back in June. At the time, the PayPay Here app for the iphone/ipad had the ability to “hand key” a credit card number in. For that matter the app allowed it. Come to find out, PayPal frowned upon hand keying the cards, they wanted them scanned. I understand it’s security logical but at the time the app allowed it so who would have known any better? The same day I did the hand key paypal placed a “hold” on my account until I called them and they told me that cards cannot be keyed. From that point forward we never keyed another card. Because of PayPal’s lack of notice to advise the end user that cards can’t be keyed but must be scanned I am not eligible for a second loan. Mind you, the app allowed it and there was no place on the app that advised against it. So by PayPal’s app design I am **bleep**. I spoke with several people in several departments and they all said the same thing. There is nothing they can do to influence the outcome of the loan app. Customer service is useless. PayPal doesn’t empower their employees to make decisions that will positively affect the business bottom line. Instead they would rather not issue the loan. What is frustrating to me is that for every sale I make they get a piece of it via fees. It makes no sense to me why they wouldn’t allow the loan when all it will do is increase my business sales, increasing the fees they collect from me. For such a simple oversight they are stepping over dollars to pick up dimes. Customer service at PP Capitol suggests that we keep trying the application process, this is their very helpful fix. We are a seasonal business with our peak season coming up with the holidays and it sure would be nice to get some of the additional equipment and inventory I need to boost this year’s sales. Good luck to you that’s looking for a second loan, but the looks of these reviews your chances are not very good.

[PayPal_EJ]

Hello everyone, again I would like to provide some clarity regarding declines for additional loans and the PayPal Working Capital underwriting policy.

As far as credit checks are concerned, neither PayPal nor WebBank conducts any query or check of any existing business or consumer credit bureau for the purpose of underwriting a PayPal Working Capital loan. Instead, a proprietary scoring method is used  to underwrite and approve/decline loans.  This information is not shared with any external reporting agencies or bureaus.

Many of you have voiced frustration about being denied for additional loans and we understand your frustration and appreciate your patience. We, along with  our bank partner, WebBank,  are pioneering new ways of providing access to fast, easy and fairly priced business loans without reliance on external bureaus. We are very aware of the opportunities we have and are constantly working through ways to improve and refine the underwriting process.

I’d like to address some common comments and questions below. 

1. Annual Limitation on Number of Loans – There is not, nor has there ever been, any limitation of the number of loans a business can obtain in a given period of time, whether yearly, quarterly, or monthly. It is true that a business can only have one open  Working Capital loan at a time, but the number of successive loans is not limited.
2. The Application Process – After the application information is fully entered, all approvals and declines are processed in a matter of seconds. There is no correlation between processing time and assessment of a business’ credit worthiness at the time of application.
3. Linked Accounts – Many of you had previously experienced declines on the basis of having multiple, or linked, PayPal accounts. This restriction was removed in late September and we are no longer declining new loans on the basis of having linked accounts.
4. PayPal Here – As Nascarr24 has stated, use of PayPal Here has the potential to negatively impact eligibility for Working Capital loans. This is a relatively recent development that was completely unintended and we are actively working through ways to fix it. It is our goal to have PayPal Here and PayPal Working Capital as complementary, harmonious products that add value to your business.
5. Internal Scoring and eBay Claims/Disputes – We have been evaluating the scoring methodology, especially as it relates to eBay claims and disputes. We are currently working through ways to decouple some aspects of the scoring model to mitigate score volatility as it relates to claim and dispute activity with eBay sellers.

Again, thank you for your participation in the PayPal Community!

EJ

[Nascarr24]

EJ- If you know the app "PayPal Here" is an issue, then please fix the issue or discontinue the app. It so so frustrating that I can't get a second loan to prepare my business for the busiest time of the year in retail. The fees that your company are missing out on I don't think you can grasp. If you can't fix the app, and / or you can't fix the automated application process then the people that answer the phones need to be empowered with the ability to get past these trivial issues with some type of over-ride and make some money for PayPal. The lack of urgency by PayPal is insane.

[alexandrasweets]

EJ this entire process had been a nightmare. I have been a PayPal client for many years. I utilized the working capital program in April of this year for $4000......paid it in 45 days and then got a 2nd loan for $5000 and did an early payoff with a lump sum of $2000 hoping to apply for a third loan. DENIED! This has truly put me in a bind. I am a small business and I was hoping to get the money for the holiday season! I was really happy when I got approved initially and thought it was a great program. I'm not sure that PayPal thought this through and it has shaken the faith many loyal clients such as myself. I really need the loan!

[FZRPaul]

I received my 1st and only loan so far. I paid it off via 10% direct deductions exactly according the terms PPWC wanted with only a handful of catch up payments for a few bucks each time the next day. The loan worked perfectly. I was able to buy more inventory and I increased my sales by 35% ytd year over year and paid the loan off in 5 months with the sales cash flow deductions.

After being DENIED for my 2nd loan attempt I called CS because it made ZERO sense to be denied, everything went perfectly! No Chargebacks, No Claims, NO negetive issues whatsoever. Only to hear the most IDIOTIC of possible reasons from the CS representative that under the "CONTINUITY" requirement it is possible I was TURNED DOWN because the NUMBER OF MY SALES LISTINGS INCREASED! - Are you SERIOUS!? I was likely turned down because the loan SUCCUSSFULLY ACHEIVED ITS PURPOSE by allowing me to increase my sales!??? - This has to be the most idiotic thing I have ever heard.

Way to build a GREAT relationship with your customers on the initial transaction and INSTANTLY FLUSH IT DOWN THE TOILET PAYPAL - Nice Work!

[FZRPaul]

Ok - Well, I FINALLY received the turn down letter. What the PPWC Rep I talked to told me was incorrect; the turn down reason had nothing to do with the increase in the number of listings I posted increasing, so at least it is something that actually makes a little bit of sense! My denial was due to PPWC viewing my business as 'seasonal' with my trend in sales moving away from it's Peak Month which has already passed.

This is reassuring in the sense that at least their 'automated underwriting' system seems to be 'fundamentally' sound. It is also STILL DISCONCERNING as it is ONLY considering the PAST sales a year or more ago and NOT taking into account THE INCREASE in THIS YEARS Sales. Ie. Last October my sales were only $1,200; This October my sales have already Increased by more than 100% of that. There is no person that has the ability to THINK and MAKE ADJUSTMENTS based on data that the 'automated system' ISN'T taking into consideration. This is a definate FLAW in the underwriting system because MY SALES ARE AND WILL BE signifcantly MORE over these coming months than last year BECAUSE I HAVE EXPANDED MY PRODUCT LINE - But PayPal W.C. will be / is Useless in helping me bolster my sales over these months because they aren't considering that.

It appears they only want to make the Gravy Money when you don't really need it, when your cash flow is at its absolute Peak and don't really care about helping you Build and Expand your business which is short sighted on their part because they won't be making ANY money in interest from customers who are in my situation implementing stratagies to increase sales in historically slower cash flow months by epxanding product lines to increase sales in those months.

PPALWC needs to either grant a certain level of authority to there employees for manual overrides in this type of circumstance or fix their 'automated system' so it can look at year over year month to month sales comparisions to recognize the increases.