PayPal allows you to have a smooth transaction process by letting you hook up your bank account directly to your PayPal and be an asset for most bank needs, local or international. It continues to innovate with valuable features for effortless business management.
You may be currently be using PayPal for many of your business transactions, but did you know you can also get a small business loan just for having an active business account as well?
How is a PayPal loan different from traditional bank loans?
PayPal loans and PayPal Working Capital have an ample range of $5,000 to $500,000 and have an easy application process compared to most traditional bank loans.
With bank loans, extensive documentation, including financial statements or legal documents, is typically necessary before you even get the process started. It can also take days or even weeks between submitting an application and receiving a notice of a reward.
PayPal, however, can take as little as 5 minutes to see if you’re eligible for the appropriate funding necessary for your business. Repayment works by deducting a 5% minimum percentage of each sale, paired with a fixed fee you’re made aware of before accepting the loan. This can be pretty comforting relative to how traditional loans work, as interest can be periodic and fluctuate more than once.
Other attractive benefits of PayPal loans are the lack of a credit check and additional application, annual, early, repayment, and late fees that can rack up your balance with a bank.
Am I eligible?
PayPal Working Capital eligibility requirements are pretty straightforward. Your must-haves are as follows:
- Have a PayPal Business or Premier account for a minimum of 90 days
- Have a proven track record of processing at least $20,000 in annual sales through your Premier account, or $15,000 in annual sales through your Business account
- If you already have a PayPal loan, you must repay any remaining balance from the previous loan.
On the other hand, it’s important to note that PayPal does have a list of non-eligible industries for funding. You may not qualify for a loan if you are an attorney, a school, a civic organization, an independent artist, or a financial services provider, among others.
Check out the list here to see if you make the cut.
How do I apply?
Some basic information is required when it comes time to apply for your PayPal Working Capital loan. Depending on your business, you may need to provide contact information and birth dates, and social security numbers for your business owners and management. However, rest assured PayPal will not utilize this information for a credit check.
1. Once you have gathered this information, you have two options for filling out their simple eligibility questionnaire to determine if your business is currently in good standing.
Fill it out yourself online — it only takes 5 to 10 minutes.
Or, if you’re a tad anxious about errors, you can speak with a Business Funding Expert on the phone that will guide you through the process step by step.
2. Next, PayPal will ask you for a number based on what you need where you can specify your preferred amount, in addition to the duration of the loan
3. Once approved, you will sign an electronic contract with instructions on setting up weekly payments directly from your account.
4. When that’s all squared away, Paypal will deposit your loan into your PayPal Business account, at which point you have the option to either withdraw it and deposit it into your bank account or let it stay in your PayPal account instead.
Get a free estimate for funds to grow your business.
Are there any downsides?
As with any loan program, PayPal loans have their downsides as well. We talked about how having a PayPal Business or Premier account is an essential requirement of the loan and that not all industries are eligible, but there’s one other con.
Notably, it’s imperative to keep in mind that consistency in payments is crucial for maintaining good standing with your loan. Falling behind with your payments can cause PayPal to place specific limits on your account, which can no doubt be detrimental to the operations of your business.
Of course, if you feel confident with the steadiness of your revenue flow, then this may be no sweat!
Loans can help many facets of managing a small business, but they don’t always cover every single part. Every business is undoubtedly unique, but overwhelming marketing expenses can be a constant for business owners across the board.
That’s where Jenfi comes in! Like PayPal, Jenfi also offers a simple and fully online application process to see if you’re eligible for marketing and inventory funding for your company. Jenfi loans are excellent supplemental loans that have your back regarding anything related to marketing your business for optimal growth.
Apply today, and discover all the ways Jenfi can help you expand your reach!