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PayPal Business Working Capital Review

Anne Miller

Anne Miller

Senior Author

Anne Miller

Senior Author

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PayPal Business Working Capital ReviewWhen PayPal entered the industry as an online payment system, it completely transformed the market and industry. To this day, PayPal still leads the industry, making new advancements in online payment, giving customers more purchasing power. Today, PayPal even offers support and empowerment for small business owners. If you are a business owner seeking extra capital for this business and use PayPal already as a Premier or Business member, PayPal has a service called Working Capital. Today, we are going to review this small business loan program and how it can potential benefit you!


PayPal working capital, or business capital loans, is one of the fastest turnaround systems on the market today. On top of this, PayPal does not perform any credit checks, making this a favorable option for profitable business owners with bad credit.


The biggest complaint that surrounds PayPal working capital is the lack of information and requirements regarding the program. On top of this, the customer representatives at PayPal seem to offer very-or-little help regarding the working capital program. We also would like to note that PayPal has a higher APR than competing companies.

Loan and Lender Information

If there is one company around the world that businesses know well, it’s PayPal. In recent years, PayPal began offering short-term business loans to small businesses to help out these owners by providing extra capital – this is called PayPal Working Capital. This type of business funding is relatively different than other typical loans that owners may open through banks. PayPal offers there services only the small businesses that already use PayPal for receiving and recording business sales. On top of this, business owners must also have:

  • PayPal Business or Premier account for 3 months
  • $20,000-$20 million on PayPal
  • No existing PayPal Working capital loan.

Now, before you are quick to apply, let’s take a look at the rates and fee for this program.

Rates and Fees

PayPal Working Capital is a great program for small business owners that are already using PayPal’s services. As far at rates and fees are concern, business owners should anticipate their loan to match 4%-5% of their total annual income, based on PayPal’s system. In other words, any money not tracked through PayPal will count. The annual percentage rating will vary between 15%-30%, which is considerably higher than competing companies. Now, if you are like most companies, you might be thinking about the payback period, correct? Well, with this program PayPal will take out 10%-30% of all PayPal sales until the entire Working Capital loan is repaid. The only other thing you must take into consideration is the One-Time fixed fee, which you will discover once you apply.

Application Process

If you are interested in the PayPal Working Capital and meet all of the above requires, it is incredibly easy to apply. In fact, you can do it all in 3 simple steps:

  • Visit PayPal Working Capital and select loan amount.
  • Pick a % for payback purposes.
  • You should receive approval within minutes. If you are approved, your loan will be available in PayPal momentarily.


In our opinion, there are many different things that PayPal did right by creating the Working Capital program. Primarily, business owners are able to apply for quick-and-easy business loans, which are predetermined based-upon how many sales businesses have tracked using PayPal. The only downside to this program is their relatively high APR rates and payback program. Reason being, APR rates across the market are lower and the payback program forces business owners to payback from each sale, which may not be preferable.


Founded in 2013, PayPal Business Working Capital is a short-term loan for users with business and preferred accounts. There’s no interest rate and borrowers only have to pay a one-time fee before they receive the funds. PayPal offers this services in many countries – Canada, United Kingdom, the United States, and just recently, Germany. Since launching the program, they have lent billions of dollars (a number that is growing quickly). While PayPal Working Capital is a great source of easily accessible liquid funds, there are several restrictions and requirements that you should note. To help clear up confusion and explain how this program works, we’ve come up with fifty questions that everyone should know the answer to.

An Overview of PayPal Business Working Capital

Many small business owners turn to PayPal to get working capital to fund their business expenses. Since they’re already using PayPal to take payments, using the platform to borrow funds is so much more convenient than the alternatives. Even though the lending process is relatively simple, it’s important to know how it works before applying for a loan. These questions provide an in-depth overview of PayPal Business Working Capital:

What is PayPal Working Capital?

PayPal Working Capital loan is a non-traditional business loan that requires a one-time upfront fee. Borrowers pay back the loans based on a percentage of their sales and there is no interest charge.

How fast can you get a PayPal loan on a business acct?

According to PayPal’s website, you can check your availability within a few minutes either online or on the phone. If you provide all the correct documents, you could have the funds within the next business day. 

How does PayPal Working Capital work?

PayPal doesn’t perform a credit check, instead they base your eligibility off your transaction history. Instead of making a fixed payment, PayPal will take a percentage of your sales to repay the loan.

How does PayPal business loan work?

PayPal users can borrow up to $5,000 with only a one-time payment. Eligibility is based off your overall business, not a credit score. PayPal will transfer out funds each week to pay off the loan.

When do you get another PayPal capital loan offer?

You can only get one capital loan offer at a time. If you want a second loan, you will need to pay off the first one completely. It can take up to three days to process your last payment.

Why would PayPal Working Capital call me?

PayPal Working Capital might call you if they are missing required documents during the application process. You will also likely get a call from them if you default on your loan repayments.

PayPal Working Capital how long to appear?

Once your application is approved, it only takes a few minutes for the funds to appear in your account. If you’re in between two loans, it could take up to 3 days to see the money.

What can I use my PayPal Working Capital loan for?

You can use PayPal Working Capital for business related expenses – buying more inventory, advertising, paying employees, and purchasing office and packaging supplies, to name a few. Since it’s a business loan, you can’t make personal expenditures.

What does the PayPal capital dashboard look like when getting a second loan?

You can’t get a second loan on PayPal without paying off the first one. It’s important to make sure your dashboard shows no balance outstanding before applying for a second loan.

How is PayPal Working Capital going to work with eBay managed payments?

PayPal still deducts the repayment percentage from eBay managed payments, just like payments processed on your website. The amount deducted is based off of gross sales, not net.

When was PayPal Working Capital established?

PayPal working was established in 2013. Since the launch, PayPal has lent billions of dollars to small business owners in multiple countries round the world, including Canada, the USA, and the U.K.

The Cost of Working Capital

There’s no such thing as free money, and PayPal is no exception. What makes PayPal stand out, however, is that there’s no interest rate. Borrowers only pay a one-time fee at the beginning. This is where PayPal makes the money from lending. There are no late fees, hidden expenses, and other costs associated with borrowing.

How is PayPal Working Capital APR 15-30%?

Unlike traditional loans, PayPal doesn’t charge interest. Instead, the upfront fee is calculated based on your sales volume and account history and equates to between 15-30% APR. If you choose a higher repayment percentage, the fee is less.

PayPal Working Capital how do make initial payment?

You can make the initial payment using the funds on your PayPal account after you’re approve for the loan. Every payment thereafter is automatically debited from your account as a repayment percentage.

How PayPal Working Capital take the percentage?

PayPal automatically deducts a percentage of sales as repayments. Each day your payments could change, depending on how high or low your sales volume is. The percentage is determined during the application process.

How to refinance PayPal Working Capital balance?

Refinancing a PayPal Working Capital balance isn’t easy, considering there’s no APR (just an upfront fee). However, you could visit a local bank or credit union and apply for a loan with a longer term.

What are PayPal Working Capital charges?

PayPal only makes you pay an upfront fee before you receive the funds. There are no hidden fees or any interest expenses. Repayments are automatically deducted as a percentage of sales.

What is the interest rate for PayPal Working Capital?

Unlike most business loans, there is no interest rate for PayPal Working Capital. Instead, you pay an upfront fee that translates to an APR of roughly 15 to 30%.

How to get more money from working capital PayPal?

Once you get approved for a loan, you cannot get more working capital funds from PayPal. The only way to do so is to increase your sales, so you’re eligible for more the next time you apply.

What if you don't have enough money to cover PayPal Working Capital payments?

If you don’t have enough money to cover working capital payments, PayPal will put restrictions on your account. After that, you can expect a collection agency to contact you to try to recoup the funds.

Eligibility and Applying for a Loan

Applying for a working capital loan with PayPal is a straightforward process. You will be prompted to login on their website and then answer a series of questions. If you provide all the necessary information, you can get approved within a couple of days or last. After approval, you can expect to see the funds in a matter of minutes. Here’s more information on what types of businesses are eligible and how to apply for a loan:

How to get approved for PayPal Working Capital?

First off, you need a PayPal Business account aged 90 days or older with $15,000 in transactions during the last 12 months. These are the minimum requirements needed for approval.

How to apply for PayPal Working Capital?

You will need to visit PayPal’s website and click the “apply now” link. After signing in, you’ll need to answer each question prompted in the application. The entire application only takes five minutes to complete. 

How to get PayPal Working Capital?

To get PayPal Working Capital, you need to process between $20,000 and 20 million in sales annually. During the application, PayPal asks for information about your business and yourself.

PayPal Working Capital declined why?

You may have been declined because you didn’t meet PayPal’s minimum requirements. This includes having either a Premier or business account for more than three months. PayPal will also reject you if you have outstanding debt with them.

What is the PayPal Working Capital loan criteria?

PayPal requires you to either have a business or premier account to be eligible. Those with a premier account need a minimum of $15,000 in sales and those with a business account need $20,000.

If I apply for a PayPal Working Capital before the 3 days what happens?

PayPal might deny your application if you don’t wait at least 3 days after paying off your old loan. If you apply too soon, they might still be processing the previous loan.

What is the likelihood of getting another PayPal capital loan?

If you paid off the loan in a reasonable amount of time, the likelihood of getting additional working capital is high. However, this could change if your sales fluctuate.

Why would I not be eligible for a PayPal Working Capital loan?

You might not be eligible for a PayPal Working Capital loan if you don’t have a consistent sales record or if you defaulted on a loan in the past with PayPal.

How long do you have to wait between PayPal Working Capital loans?

You need to wait at least 3 days before applying for another working capital loan. There’s a chance PayPal could apply your application if you apply too soon.

What do I need for PayPal Working Capital?

You need to process payments through PayPal via methods such as PayPal Here and PayPal Express Checkout. In addition, you need to have had your account for at least 90 days.

What business categories does PayPal Working Capital accept?

PayPal Working Capital accepts various industries – clothing, technology, antiques/secondhand products, books, and memorabilia. Categories such as selling animals or adult content are generally not accepted.

How often can you apply for working capital PayPal?

You can apply for PayPal Working Capital as often as you want, as long as you have no loans with an outstanding balance. Moreover, you should also allow for a few days between loans so they can process the final payment.

When can you reapply for PayPal Working Capital?

PayPal doesn’t have a restriction set forth saying when you can and can’t reapply. If you are denied, they will send you more information detailing why. It’s best to review this before reapplying.

Loan Amounts

While PayPal won’t lend you enough for huge expenditures, you can get some extra cash to fund your small business. PayPal sets a maximum amount based on your account history, your sales, and whether or not you have had a working capital loan in the past. You’re never guaranteed the same amount if you apply for a second loan in the future. These questions cover how much you can expect to get:

How to get a $10,000 working capital loan from PayPal?

If you want to get $10,000 in working capital from PayPal, you would need to have done $33,334 in sales in the last 12 months – you can get up to 30% of sales.

How to get more funds in PayPal capital?

PayPal does not add additional funds to working capital loans. The only way to get more funds is to pay off your existing loan and then apply for a new one.

How much can you get from PayPal Working Capital?

You can get up to 35% of your sales in the last 12 months. For you first two loans, the maximum amount is $125,000. Afterward, you can receive up to $200,000 in working capital.

If I make $20000 a year how much can I borrow from PayPal Working Capital?

Since you can receive up to 35% of your sales, you could get up to $7,500 in working capital. This is the maximum; the exact dollar amount depends on a variety of factors. Also see: business loan calculator how much can i borrow?

How does PayPal calculate the amount of a working capital loan?

PayPal calculates the amount of working capital based on your sales within the last 12 months. The maximum you can receive on your first loan is the lesser of 35% of your sales or $125,000.

How to win the PayPal Working Capital?

You can’t win PayPal Working Capital. Every business owner must apply directly on PayPal’s website. All the funds that you borrow from PayPal have to be repaid sooner or later.

How many PayPal Working Capital loans can I get?

You can only get one PayPal Working Capital loan at a time. If you want another loan, you’ll have to pay off the pre-existing one beforehand and then reapply.

Repaying Working Capital

PayPal Working Capital is not like standard business loans where you have a minimum payment each month. Instead, they deduct a pre-determined percentage from your sales. Since these are short-term loans, most borrowers repay the debt within 12 months. If you can’t pay it off, the last resort (and worse case scenario) is defaulting on the loan. To make sure you know how repayment works, take a look at the below questions:

How to check PayPal Working Capital balance?

The working capital dashboard page is where you can find your outstanding balance, repayments, and loan details. You can your eligibility to make additional payments on your dashboard.

What happens if I can’t make my 90 day PayPal capital loan?

If you can’t make repayments on your 90-day capital loan, your working capital will go into default. This happens when you get behind on more than 50% of your loan.

PayPal Working Capital how long after paying loan off?

While the terms vary, PayPal expects loans to be paid off between 9 to 12 months from the date of funding. The repayment times also depends on percentage of sales PayPal is deducting to repay the loan.

How to remove PayPal Working Capital from your account?

The only way to remove working capital from your PayPal account is to pay it off completely. You can always make a manual payment instead of having a percentage deducted from sales.

How long does it take for a manual payment to go through PayPal Working Capital?

It can take up to three days for a manual payment to be processed. However, PayPal processes some payments almost instantaneously. Typically the more you pay, the longer it takes to process. 

What is repayment percentage for PayPal Working Capital?

The repayment percentage varies – it can range from 10 to 30% of your sales. When you choose a higher percentage, you’ll have to pay a higher fee at the beginning of your loan.

How to send money through your PayPal capital credit?

Sending money using PayPal capital credit is simple – just login to your account, click “send money,” and enter the email address you want to send money to.

How do I pay the one-time fee with PayPal Working Capital?

You can pay the one-time fee by either using the balance already on your PayPal account or with your debit card. PayPal does not let you use borrowed money to pay the fee.

Recording Debt Expenses

As with any business, it’s crucial to properly record debt expenses associated with using PayPal Working Capital. Failing to do so could mean overstating or understating your liability accounts, resulting in inaccurate financial records. The below questions teach you how to record expenses on different platforms and supervise your debt:

How to record PayPal Working Capital on GoDaddy bookkeeping?

To record PayPal Working Capital, you can create a new business income transaction and categorize it as a “transfer in.” Similarly, you need to create loan payment expense and label it as a “transfer out.”

How to get a PayPal Working Capital supervisor?

If you have a business account, you can add employees by going into my settings, get started, and then manage users. You should use a preexisting employee or someone you can trust to supervise your working capital.

How to handle PayPal capital loan in QuickBooks?

You can record the PayPal capital loan in QuickBooks by opening a liability account. Each time you make a payment, you’ll need to select the liability account and record an expense transaction.

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