PayPal Community

Hello nocustomersrvc,   While PayPal Working Capital loan disbursements appear as sales in the generated reports, they will not be included as such in your business’s annual 1099K form from PayPal. You and the IRS will be presented with accurate information regarding your business’s PayPal sales revenue when the 1099k forms are generated.   I hope this helps answer your question and thank you for participating in the PayPal Community forum.   EJ ... View more

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 ... View more

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 ... View more