PayPal working capital is a small,short-term business loan that is offered to through PayPal when you have an account and a good reputation for eBay sales and a good history. They loan a small business owners money with no interest rates. They charge you ajust one-time fee,andthis fee is determined by two things:
- How much you borrow.
- How quickly you pay it back.
PayPal gives you money up to 18% of your annual sales. So, if you are selling a $100,000,then they will offer you $18,000. Once you select to take the loan, for instance, the loan is for $10,000. PayPal will assign you a fee to borrow $10,000. You willbe given an amount of the fee based on how quickly you want to pay back.
PayPal gives you three options to pay back. You can pay back 10%, 20%or 30% as it is based on your daily sales. So, if you sell $100 a day, PayPal will either take $10, $20 or $30. The higher the percentage of daily sales that you allow them to take, this is not on net sales, the smaller fee they will offer you to pay.
Basically you go to your PayPal account,and there you will find a key of working capital loans. There is a very easy application process that takes only 5 minutes to fill in the application. They will accept you or deny you. Usually, they approve the request if the individual has goo eBay sales and history. They give you an amount to borrow. Along with this, they also give you four options to select and allow you to select how much you want to pay back each day for sale.
Pros Of Paying Quickly Pay Back
- As nobody like debts, so the quicker you pay it back, the better it is.
- Once you pay back your loan, they offer you more loans. Also, if you have does a good job of paying back then this new offer will be alarge amount.
- Another pro is that if you can pay back quickly, that means your sales have increased. In other words, you are making more profit.
Cons Of Paying Quickly Pay Back
- When you are paying back money quickly, that means that you are disturbing your cash flow, the maintenance of which is the main point of borrowing money.
- The slower you pay back, the higher is the fee that PayPal will charge you for borrowing the money. But, you have to keep the cash flow working. So, in that sense, it is better to pay back slowly. It all depends on the type of business you are running.
PayPal is different from the other lenders. It does not have an interest fee. It is a straight simple payment. There was a PayPal working capital review that will guide you more about how it works and how it is better than other options for borrowing money, especially for your small-scale business.