PAYPAL WORKING CAPITAL DENIAL FOR SECOND LOAN

waterworking
New Community Member

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

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195 REPLIES 195

peifullymine
Contributor
Contributor

They denied my request for my final self initiated payment back because my loan had been paid back slowly.....How can a loan be slow when it is paid back how they require and my business HAS NOT decreased from when they approved the first loan??? When I pointed out that fact and that the loan contract gives the 10% pay back option I took they said yes but they expect people to complete their loans quicker....I am not sure how they justify that logic because the loan was paid back exactly to the terms of the loan and I read that many people who pay back much earlier are also denied subsequent loans. 

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adg1050
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Contributor
I was original denied for my 4th loan but after calling & letting them know my revenue has only increased and there's no reason to be denied, they said try again and boom it worked. I am now on my 6th or 7th working capital loan. Each one has increased substantially so if you're business is growing, you do not have open cases, your address is valid - they should be able to approve you.
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valentinallc
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Contributor

It happened to mee too. has paypal got an answer instead  your account is not in good standing?

thanks 

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screenprinter06
Contributor
Contributor

This happened to us over the weekend. Found an awesome machine that would allow us to do twice the work in half the time and to process much larger orders to increase our sales. Paid a lump sum of $1,000 to pay off the last bit of the remaining balance from the first loan and planned take out a second one to procure the machine. Sales are good. Payments made from every sale. No disputes. NOTHING changed.  And then, denied the 2nd loan. For what reason? 

 

It isn't that people feel they're entitled to ANYTHING. It is that when you operate a business, you set criteria out and offer a service based on that criteria, there is no reason to assume that your clients won't assume you offer a service today that you offered yesterday.  And that you're offering to others today. The randomness of it feels insulting and like a slap in the face. 

 

I can't operate my business like that. I can't tell my clients one thing one day and then refuse to serve them the next as if they did something wrong.  Especially when I'm serving and accepting others and my long term client did nothing.  Is it bad to rely on a service that others are also getting and that you were once able to use?  It isn't like they cancelled the program or anything. So why was I given the boot? 

 

That is what people are trying to understand. Having no answers for people that are trying to operate a stable business bleeds disfunction over into their business.  If someone I work with is uncertain from day to day and has no answers, I cannot depend or rely on them. Depending on those you pay fees to(therefore that you are employing for a service) is basic business relationship logic and expectation, right?

 

I asked for a refund of the lump sum yesterday, since there are no answers and I cannot depend on being able to use and pay for the working capital system.  She said she'll put it up for review. I told her I read that people were having trouble with their second loans, she corrected me and said "No, it's their third and fourth."   Maybe she should Google before she speaks. They refunded my lump sum payment by this morning.  After an 8 year relationship with them, I'm glad they did that, at the very least.  My point, if you want your lump sum refunded, just ask.  Hope that helps someone else.

 

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bcwv
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Contributor

Hello Everyone,

 

Dont worry, after several weeks of trying I finally got approved. Paypal is working on getting the system together. Dont loose the hope. Put yourself on a regular applying. Try 3-4 times, if it locks you, try in one week. Wait actual 7 days, dont rush. If you do, you will get another 7 days as it resets the system. Thank you Paypal for having this program, it helps me use you guys as the temp investor and makes my business grow! To others, stay with Paypal and dont go to Stripe, Square or Authorize.net. Paypal is worth it , support it and keep trying. You will get approved if your business is growing, if it is not, then it is the time to rethink your strategy.

 

Good luck,

 

V

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sarajensen
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Contributor

I find this whole process SO confusing. It makes no sense. I applied for my 3rd load in 6 months, the other two I paid off rapidly. I called right before I made a customer initiated payment on balance on the 2nd loan before applying for the 3rd. They assured me that I would most likely be approved for a 3rd. I realize that this isnt a typical loan situation, no credit checks etc--but what the heck is the point of being responsbile and paying off your loans if that doesnt count towards something? 

I was set to expand my business which has grown rapidly in the past year, then I was told there was a techincal issue and they had NO idea when it would be fixed. This was last week, the called me today and mentioned that I had actually been declined, would not tell me why and said they were sending a letter. I was pressured into taking the first loan out, which I was actually happy about afterwards. 

I just really dont understand the point of this program if we cant take out another loan once we pay another off, especially when we do it quickly. 

I keep reading that this program is failing fast. I think the issue is that too many people are trying to take out loans around the holidays and paypal cant keep up, which is even more strange because they sure take a lot of money from me. 

http://www.digitaltransactions.net/news/story/Holiday-Season-Demand-Taps-More-Cash-From-Fledgling-Pa...

Be honest, just say you dont have the money to give, instead of making smaller businesses like myself feel like we did something wrong because we are being denied. 

I am this close to not using paypal anymore. 

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potofgold23
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Contributor

Has anybody had luck lately getting a second loan? I have been trying every few days for the past two months with no luck. First one was no problem.

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sarajensen
Contributor
Contributor

I havent even tried to go back and reply, I found the whole experience so frustrating, Im feeling pretty down on Paypal. I have a littlet left of my last loan left to pay, but to be honest, after that I dont think that I will be using Paypal at all anymore if I can help it. 

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potofgold23
Contributor
Contributor

Has anybody gotten a loan since the system upgrade they said they were doing?

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peifullymine
Contributor
Contributor

I paid off my loan the other day and didnt see a button to re apply for a 2nd loan so called. I was told it has denied me a 2nd. The reason the agent gave when I called was I did not pay it fast enough..They say they require 10% of the loan to be paid back every 90 days during the first 18 months...which would be a total of 60% of the loan.. I paid a minimum pay back of 10% every 90 days as agreed and had 85% paid in 2/3 of that time when I then made a balloon payment to pay off early. But they say that 10% is just a minimum and they prefer more.. So instead of expecting us to be mind readers why dont they say you have to pay 30% minimum back every 90 days instead of the 10% and then claim it wasnt paid off fast enough even though I paid the loan off 1/3 faster than required. I have asked for a refund of the final payment now they are denying me a 2nd loan as I need to use the money. There is no incentive to pay early and is very frustrating when the reason given makes no sense.. I read also on this forum that a number of people who have paid back within weeks of getting a loan are denied also for a subsequent loan...there has to be a better way of giving these loans than the slap dash hap hazard way ti appears to be now and obviously paying back on time as required or faster seem to not be taken into consideration at all.. 

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