Darrell Esch, VP and GM, SMB Lending, PayPal

 


 

working_capital_post.jpegSmall businesses across America are constantly under pressure and face intense competition. Many need additional capital to grow or sell more so they can better compete and succeed, but it’s no secret in the small business community that securing capital is difficult. According to a report released in August by The Federal Reserve Bank of Cleveland, the total value of small business loans in the fourth quarter of 2012 was 78 percent less than in the second quarter in 2007.

 

Today we are pleased to share PayPal Working Capital, an innovative way for PayPal customers to fund their growing businesses. For the first time, select PayPal businesses will have access to a business loan that allows them to get funding in minutes once they apply, review and agree to terms. And it allows them to repay with a share of their sales and know they’re paying for the loan with one, affordable fixed fee. From September 24 through December 31, 2013 select PayPal businesses in the United States will be offered an exclusive release of PayPal Working Capital, which is issued by the lender, WebBank.

 

PayPal Working Capital is available to select businesses that already process payments with PayPal. And it’s simple:

 

  • It’s a business loan that enables PayPal merchants to repay the loan with a share of their PayPal sales, so there are no minimum monthly payments. If you have no sales on a particular day, you owe no payments for that day.

  • Select PayPal merchants can apply online, review and agree to the terms of the business loan and if approved, get funding into their PayPal account in minutes.

  • Pricing is simple and clear. The loan is available for a single, fixed fee that is displayed to a business before signing up. There are no periodic interest charges, late fees, pre-payment fees, or any other fees, so a merchant knows what they’ll pay, down to the penny.

  • Under the PayPal Working Capital program, the lender uses PayPal sales history to extend credit, so no credit check is required and the loan does not affect a business’s credit score.

PayPal’s strategy is focused on providing simple access to funding for small businesses, and we have a strong relationship with our business customers. The lender WebBank will make credit decisions based on our customers’ PayPal sales history. Decision-making and funding loans will be faster than alternative sources would be and, more importantly, the loan offers greater degrees of flexibility and transparency.

 

We are constantly listening to and engaging with small businesses so we can help them solve problems and sell more. PayPal reached out to the SMB community including a survey of 1,000 PayPal small businesses who conveyed their frustration with the current lending system and the need for more options. This is how PayPal Working Capital was born.

 

PayPal Working Capital enables small businesses to easily scale to meet seasonal demands, and seize new business opportunities when they arise. For example, PayPal merchants can easily access funds they need to expand inventory and increase their staffs to gear up for busy times such as the fast-approaching holiday season.

 

PayPal has been committed to small businesses since we pioneered online shopping nearly 15 years ago and helped to open the doors of millions of businesses worldwide. PayPal Working Capital is an extension of this commitment and one we’re extremely proud to introduce.

 

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Comments
by Robert Hutchison on ‎04-25-2014 08:56 AM

Is this something that is only offered to certain businesses or can you apply for it as well. And if you can apply how do you go about doing so.

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