PayPal Working Capital has now lent £625 million

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PayPal‘s lending service, PayPal Working Capital, has revealed that it has now lent £625 million to small businesses in the UK. That’s up from £400 million in July last year. They report that 30,000 UK businesses have now benefited from the £3.6 billion that PayPal Working Capital has loaned globally since its inception in 2014.

Notably 70% of PayPal Working Capital loans made in the past year happened outside traditional bank branch hours. the process is entirely online and available at all times.

Many British small businesses are still struggling to get funding for their future development. The banks will always play an important role in business financing, but we’ve found that over 70 per cent of PayPal Working Capital funding was issued outside traditional UK bank opening hours. We’ve replaced the lengthy in-branch application process for traditional business finance with a fast, online alternative for PayPal’s small business customers. As PayPal knows the applicant’s business, we typically approve and issue a cash advance in minutes. The business owner can spend the time saved on what really matters: running their business.
– Norah Coelho, Director of Business Financing, PayPal UK

There’s no doubt that the traditional banks are still not doing what they should to support British small business and online services such as PayPal Working Capital have stepped into the gap. It’s also, from what we hear, more acute a problem for ecommerce merchants because the understanding gap about online retail is bigger.

PayPal and the others have the advantage in that they can take into account past performance and monitor online sales to make a judgement on what is appropriate to lend.

By all accounts, applying for a loan is extraordinarily easy and the funds are indeed available almost immediately and that can be a huge boost to merchant cashflow, especially at times when you need to buy stock or equipment to boost your performance.

8 Responses

  1. needs to be more reliable
    we use it often
    just recently we had an application declined with no reason given
    a few days later we were offered thousands,
    in our business we need to know funds are available at a moments notice
    if needed

  2. Brilliant service, been a life saver for me & helped me to expand my stock.

    Can’t praise it enough.

    I don’t use a company bank and I don’t trust them after the caused the 2008 crash.

  3. Lol, Know what you mean.

    Tried Iwoca as recommended by tameBay & got told to get lost!!

    Then PP WC came along, thanks goodness!

  4. iwoca is just a little too complicated for our liking
    paypal easy peasy
    straightforward and uncomplicated
    even when you get a refusal that bits easy understood
    its a flat and unequivocal NO

  5. We have used PPWC twice and no application issues at all, we paid the first one off a little earlier than we needed to.

    We borrowed GBP and our account is GBP.

    My one gripe is that we now receive USD quite regularly from .com sales and paypal take their percentage and convert it at their exchange rate (at least Dick Turpin Wore a mask) to GBP.

    I would prefer the different currencies to be ring fenced as long as i stayed up with the commitment.

    We do not fx our USD to GBP via paypal, we send it to our US bank account which we pay our US suppliers with.

  6. We used PayPal working capital 3 times.
    First two were for small sums and paid off within about 8 months each, 3rd lot was much bigger and payment was over 22 months.
    Far easier than getting a bank loan.

    Would have no problem using ppwc in the future if we wanted some expansion funding.

  7. We borrowed £50k off Paypal and have repaid it in 18 months at the 20% repayment option. Very quick and straightforward to apply and funds in your paypal account within 2 minutes. One gripe is that you have to make minimai quarterly payments. Our quiet period is Spring so we were a couple of thousand short despite being well ahead of the overall repayment plan. No flexibility, no interest we were ahead of schedule, didn’t understand business seasonality etc and we had to find the shortfall. Disappointing that there was no one to speak to who you could have a sensible conversation with. The finance (you pay no interest but a fee
    when you set it up) does work out quite expensive so in my opinion use it for short term lower level working capital requirements rather than longer term projects


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