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CEO Confidential

What Is PayPal Working Capital And How Could It Help Your Business?

Many businesses will need to seek additional funding at some point throughout their lifetime, whether it be to invest in their long-term growth, or simply to solve issues with cash-flow. But, with so many finance options out there, finding a funding option that best suits your business’ needs can at times feel overwhelming.

According to a recent report, PayPal Working Capital is a funding solution which is rapidly increasing in popularity, particularly amongst small business owners:

  • 30,000 UK businesses have now benefited from the £3.6 billion that PayPal Working Capital has loaned globally since its inception in 2014.

But What Exactly Is PayPal Working Capital?

Also known as a cash advance, your business can receive up to £150,000 in business funding, which you then repay using a pre-agreed percentage of your PayPal sales.

There are no periodic interest charges, nor monthly bills or pre-payment fees. You simply have just one fixed fee to repay, the amount of which is determined by your business’s previous PayPal sales and account history.

Applying:

The application process itself only takes around five minutes, whereas the application for a typical bank loan can take hours and may require you to come to numerous follow-up appointments. With Paypal you can easily apply online, and if your application is accepted, you can access the cash within just minutes. making it an immensely quick and convenient option.

Repaying:

When it comes to making repayments, these will be automatically taken from your PayPal account whenever sales are made, so the process is always hassle-free. Your business will start to pay back the advance four days after you receive funding and the percentage that you repay is always pre-agreed. In other words, you won’t encounter any nasty surprises.

PayPal also gives its users the option to make extra payments, giving you the ability to pay off your cash advance sooner if business is booming. It is also worth noting that any revenue your business makes outside of PayPal does not have any influence on the loan, both in terms of how much money you receive, and in term of the repayments.

Things To Bear In Mind…

There is a minimum level of repayments that you are expected to meet every 90 days, but this is usually no more than 10% of the total amount borrowed.

How Can PayPal Working Capital Help Your business?

  1. With the chance to have significantly increased funds available to your business within minutes, there is a whole new world of opportunity offered up to you with PayPal Working Capital UK could give you the chance to refurbish your shop, run a new marketing campaign, or start up that new project you have been planning for months.
  2. The gentle repayment scheme that PayPal offers should allow you to enjoy your cash advance and the opportunities for growth that it brings you without feeling under time-tight pressure to pay off your debts.
  3. The fact that the repayment percentage has been decided upon by you personally, you’ll know exactly what to be expecting each month. This in turn allows for simpler and better financial planning on your part within your business, allowing you to feel more in control of your business’ growth commercially.
  4. The rapid nature of such financial product also makes it a no-brainer solution if ever you bump into any nasty financial emergencies. Say there is a serious and unexpected problem with the electricity within your business that requires an electrician’s immediate attention. If you do not have the funds to pay the electrician, PayPal funding has almost instantaneously got your back.

Whereas, if you were to apply for a traditional bank loan instead, you would be left waiting weeks before had received the money, leaving you and your business meanwhile in a muddle.

Notably 70% of PayPal loans made in the past year happened outside traditional bank branch hours, again bolstering its more convenient and accessible nature, which is becoming more and more essential in our busy, modern-day society.

PayPal Working Capital is a modern and convenient option for any small business owner in need of a quick and easy helping hand with their finances. Its flexible and speedy nature allows for an increased wealth of opportunity, allowing for the development of your business, but also a simple solution to any financial emergencies might that crop up.


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Sophie Ireland
Foreign Correspondent for ​CEOWORLD magazine media. Policy Advisor, writer, professional restaurant recommender, and native New Yorker. I have approximate knowledge of many things.
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