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
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