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

[Nascarr24]

2nd loan- DENIED. For a company that seems to want to help a small business, they seem to be a lot of apps rejected. The way I see it, the more the small business makes, the more PP makes with fees. Just doesn't make ant sense. Maybe they don't want to generate any more income. I can't figure it out but if your hopeful of paying off one loan early to get another loan, I got news for you. Think twice before you do it. Chances are pretty high that you will be denied to. It's too bad. Seemed like a very helpful program for small business.

[malibu4u]

You have joined the ranks of guinea pigs to a program that was not totally thought out or done.  I to had same experience and people answering the phone want to say immediately you must of had a chargeback.  I had never had one.  After much stress as I too paid off early diverting funds to make a lump sum payment.  Feeling for sure that a second loan wpuld be a walk in the  park.  DENIED.  After being told it was a pilot program and be revamped daily----really daily darn you people messing with me in any such fashion.   I finally got a rep who refunded my lump sum payment back, and told me my denial was probably do to my number of transactions.  I have a vacation rental which is always paid for 30 days in advance of arrival.  Those payments can be made in two payments or one if they're arrival is less than 30 days away.  My point is I do not have a sell everyday.  It varies from month to month but could be 1 to 10  but usually averages 3-4 sales per month if I were to guess.  So even though I only have a few sales they are substantial.  So they are suppose to be loooking at that.  

Should of had all this worked out before rolling it out. 

[onesyepadvertis]

It is a mess. It seems like too many broad spectrum reasons. I got one of the letters and one reason was because I had a lot of withdrawals from my paypal. Really?? You want me to borrow money, sell the items, however leave the money in paypal (I'm not talking about their payment). Seriously....In the real world people have bills to pay!! Set your criteria to where it was....it was working...people were impressed. As the old saying goes "If it isn't broke...don't fix it".

[pbells]

Apparently there are quite a few bugs in the system as the criteria for acceptance is not solidified at this point. My account is perfect in every sense, the reason for my denial for my third loan was another "linked" paypal account. (my first 2 loans were paid off in record time, each time, we simply paid off early with a lump sum payment. I spoke to paypal 30 days ago and they were aware of the problem, and are looking to change that specific rule about the linked accounts. I called today and its still "up in the air" They are working to change the criteria and some sellers and getting approved and some are still being denied for the same reason. I asked if the criteria was changed why wouldn't it effect all sellers? No real answer they are trying but some people are still being denied for linked accounts. Short answer paypal is not a reliable source for funding, the problem with us is we routinely pay off early, and don't want to take the risk. When it works we are very happy with the loan.

[Nascarr24]

Bottom line, if your thinking about making a lump sum payment in order to secure a new loan, don't do it. Chances are slim to none that you will get it. PP doesn't care about small business. They will be happy to take credit card processing fees but when it comes to helping business grow, it's not happening. Good luck.

[JRockey]

After 20+ denials for our third loan, we just got approved for our third $20K this morning. It appears they may have fixed the "linked to another paypal account" criteria.

[My-House]

the whole system is really bad and frustrating. It would be better for them to suspend the program until they figure out exaclty what they want to do with it rather than having it going and changing the rules/ policies everyday.

applying for this loan is almost lile playing the lottery or shooting after a moving target that you have no idea where its going to be at any point in time but blindly hitting hoping you will strike

good luck to those who will get, I was approved for appoximately 10K in february, paid of the balance in a lump sum of about 3k in hopes of getting another and after almost a month now of trying and constantly denied I will say F to that.

I shall be going elswhere..................

[oscodapete]

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@JRockey wrote:

After 20+ denials for our third loan, we just got approved for our third $20K this morning. It appears they may have fixed the "linked to another paypal account" criteria.

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It may be partially fixed, but I have tried almost every day for a month, including today, and have been continuously denied because "Your PayPal account was recently linked to another PayPal account". Not that I know of. Maybe it's a hit or miss program.

[Nascarr24]

Denied, Denied, and Denied. Get use to hearing it.

[Smez14]

I was on the phone with them for over half an hour today.  Same issue - system still cannot verify my indentity.

Ruled out it's the address as tried multiple combintions (and it hasn't changed since my approved loan).

Not my DOB, Not my Social Security and so on.  There was nothing they could do - all my data matches my tax records and how did it work the first time around!

Anyway -the good news is I am being interviewed his week on emerging financial products for small businesses and boy am I going to have some "choice" feedback on this product.