There are times when your business might need a quick cash injection, from needing to purchase more stock to taking out a new lease. Last year we found ourselves in that situation, with an opportunity that was too good to miss out on. Instead of approaching a bank or other lender, we decided to give Paypal Working Capital a try. Now that we have paid off the Working Capital advance, I thought it was a great time to share my experience with you.
What is Paypal Working Capital?
Paypal Working Capital is a fast, easy way to get business funding. You can apply and get a decision in just minutes, as well as choosing your own repayment terms.
The biggest advantage for us was that there was no interest to pay, just a one off fixed fee that we were told before we even applied.
How to apply for Paypal Working Capital
In order to apply for Paypal Working Capital you need to have a business Paypal account.
Your approval is based on your past Paypal sales history, meaning that the more money you have had coming in, the more money you will be able to borrow. There is no credit history search carried out.
Once logged in, answer a few simple questions about your business and what you plan to use the cash advance for.
Paypal Working Capital will then generate your offer for you, based on your previous income into Paypal.
From here you can choose your cash advance amount and complete the process.
Repaying Paypal Working Capital
When you apply for Paypal Working Capital, you choose how much you want to pay from your future sales.
Paypal use the word ‘sales' but this means any money coming into your Paypal account. You can also make extra payments as and when you feel like.
We chose 30%, and we paid off the cash advance within 145 days.
If you aren't paying off a certain amount from your sales then Paypal will need a minimum payment from you.
Paypal Working Capital was much more favourable and much more cheaper than other options. We managed to make the purchases we needed, and even with the fee, it was very profitable for us.
Would I use Paypal Working Capital again?
In an ideal world, our business bank account would always have enough money for us to pursue whatever avenues we want to, but obviously this is real life and that doesn't always happen! A lot of my income, especially affiliate income, doesn't get paid for as much as 90 days after it has been earned, meaning that on paper I have earned a nice chunk, but our bank account is still waiting for it to hit!
I found Paypal Working Capital really easy to use. We had the money really quickly and were able to withdraw it from Paypal to spend on what we wanted it for.
It took us 145 days to pay back the cash advance, on a basis of 30% of the money coming into Paypal from every transaction.
This was actually really annoying when we used the cash advance for reselling, and 30% of any blogging tasks paid by Paypal went to paying back the cash advance!
Overall I found the process really easy, and I am so thrilled to have paid it back so quickly. I didn't want a debt hanging around the business for a long time so this was the perfect solution.
Should another fantastic opportunity arise where we need some capital to grow our business then I would not hesitate to get Paypal Working Capital again.