A few days ago we wrote a piece asking if you should carry on applying for PayPal Working Capital cash advances bearing in mind that their terms and conditions require you to repay the loan from proceeds from your eBay sales. If you switch, whether it be voluntary or compulsory, to eBay Managed Payments then this would count as diverting funds away from your PayPal account and of course put you in breach of your cash advance conditions.
PayPal have been in touch to reassure Tamebay readers that they will have a solution in place and they will be able to use a manual option to make their minimum payments. It won’t quite be business as usual as normally the payment would be taken from your PayPal account on a daily basis as payments from sales come in. However PayPal say that their is no reason not to continue using their services and they are working to develop alternative funding solutions to support you in the future.
“PayPal truly values your business and we are aware of the potential impact of eBay Managed Payments on our customers.
While the move to eBay Managed Payments will mean change, we don’t see this as a reason to not keep using PayPal Working Capital. The move will change how customers interact with PayPal – for example, PayPal won’t be able to take automatic repayments from eBay sales. However, businesses will still always have the option of making manual repayments to meet their minimum repayment requirement. We’re also introducing improvements that will make this easier to track and stay on top of as part of our wider efforts to help customers to adapt and, because PayPal Working Capital is a cash advance, changes in your repayments will have no influence on your business’s or your credit rating.
If you choose to enroll in eBay Managed Payments when it becomes available in the UK, please contact PayPal Working Capital Merchant Assistance at your earliest convenience on 0800 368 7102 (Monday to Friday 08.00am – 6.30pm) to discuss your current PayPal Working Capital cash advance and what your options are. Our goal is to support merchants through the process with viable solutions that are to both your and our benefit. We’re working proactively to develop the right strategies to help, including developing alternative funding solutions to support our merchants affected by the move to eBay Managed Payments. We’re looking forward to being able to announce further developments in this area in the near future.”