How to Get A PayPal Business Loan

PayPal Business Loan enables small business owners to access business loans easily. Businesses owners often need loans to build up their business. PayPal Business Loan provides loan finance from $5,000 a $100,000 for small businesses. Eligible applicants get the fund in their Business bank account. Before accepting the loan, you would have been shown the fixed fee.

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Since 2013, PayPal has come up with more than 10 billion dollars in business financing. Apart from the PayPal Working Capital loan, PayPal also renders a more traditional small business loan. With the Business loan, you do not have to process payments on PayPal to be eligible. Businesses that are in need of fast cash do not qualify for a bank loan or need funding for growth. PayPal Business loans range from $5,000 to $500,000.

The amount you are eligible for depends on the financial capability of your business and credit score. A business loan has a fixed fee and also it has weekly repayments. Therefore, PayPal takes repayments from the business’s bank account and not from the PayPal account. It’s repaid over three months or one year depending on the loan size.

The loan offer and eligibility are based on a thorough assessment of your business. So to determine approval, loan and pricing, the lender bank will assess the credit history of the business owner and the business. Web Bank is the lender bank for PayPal Business loans.

Immediately the loan eligibility is approved, the funds will be transferred directly into your PayPal Business account. The fund will appear in your PayPal Business account as fast as the next business day if your application is approved by 5:00 p.m. Eastern Time on bank business day. And automatic repayments begin after 72 hours that the loan has been approved. However, another fund cannot be added to an existing loan unless you apply for another loan which cannot be given until after the existing loan is closed.

Once you’ve paid off the loan, you will receive a mail that your loan is closed and if you are eligible, you can apply for another loan. But this will take like 5 business days from the day of your final loan repayment. If you are lucky to be eligible to take another loan, you should check if your business information has changed during your last loan. Your loan legibility, loan offer, potential offer options, and fixed fee might change if your PayPal account activities have changed.

Requirements

To be eligible for a PayPal business loan you have to meet the following requirements:

The first thing is to have a PayPal Business account.
Have a minimum FICO score of 550.
You must have been in business for at least nine months.
Have a minimum annual revenue of $42,000.
There must be no trace of bankruptcy on your PayPal account.

To get A PayPal Business Loan

Select the amount you wish to borrow.
Choose the amount of PayPal sales you will repay your loan and fee with.
If approved, you will receive the funds in a few minutes.

PayPal Business loan requires you to sign a personal guarantee which allows it to go after your personal assets if you fail to repay the loan. Once you’ve approved the application, just wait for a few seconds. Although it may take a few days for your PayPal Credit Account to be approved.

As a business owner, it is possible to encounter difficulty in raising funds to move your business up. And to get funding for your business, you need to know how to get a business loan. This guide will walk you through how to get a PayPal business loan.

6 Ultimate Guide To Get PayPal Business Loan

1. Know What Your Business Can Afford

It is essential to estimate the additional revenue that you think will result from the investment you planned. From your cash flow projections, you should know how much you can afford for repayment. Keep this amount as a touchpoint as you move forward. Beware of financing huge capital than you can afford.

2. Prepare Basic Business Information

Regardless of the kind of Business financing you choose to pursue, it all requires some basic business and personal information in order to determine if your business is eligible to take the business loan.

3. Get To Know Your Financing Option

It is important to have an understanding of the different kinds of business loans that are available and know the ones that are perfect for your specific purpose. However, for fast, easy, and competitively priced business loans, explore the PayPal Business loan.

4. Determine If Your Business Meets Basic Eligibility Requirement

While some loan providers are interested in your credit score, PayPal Business loan is interested in your PayPal account history and it does not require a personal credit check. What you need is to have a PayPal Business account and 90 days sales history.

5. Know What Lender Are Evaluating

After you’ve submitted all the necessary documents, your loan application will be reviewed and it could sometimes depend on the kind of Business. No matter how long the process takes, PayPal requires from small businesses what is referred to as “The 5 C’s of credit”. They are Capacity, Character, Conditions, Capital, and Collateral.

6. Understand How The Loan Works

When you receive a loan offer, ensure that you understand the basic structure of the loan. Have knowledge of:

How and when you will receive the fund
How long does the loan repayment take
How and when you will make payments
Know if the loan will help your business or not.

Also know the total cost fee: whether there are original fees, early repayment fees, or late fees. PayPal Business Loan has one fixed fee that is very easy to calculate.

Conclusion

As much as taking PayPal Business Loan is fast and simple, do not rush into getting one unless you have a good knowledge of how it works. Ensure to know if you are eligible to take the loan or not. And also have the necessary documentation that will be required. Do not let the process of getting a Business loan impress you. The same way you pursue your business every day is useful when seeking how to get a business loan. Always consider the reputation of the loan provider before taking it.