Paypal Capital Review

PayPal is one of the biggest eCommerce platforms in the world, and it has massively expanded in terms of user base and what it has to offer since it was first launched.

Paypal Capital Review

One of its more recent programs is PayPal Capital, which was launched in 2013. This is a type of business loan that PayPal offers to merchants who use their PayPal Business account to make sales.

But if you haven’t heard of PayPal Capital and are looking for a loan to help get your small business off the ground, is PayPal Capital the right option for you?

To clear up what PayPal Capital is, how it works, and whether it is the right lender for you, we’ve done our research and come up with this in-depth review of the service.

So let’s get started!

What Is PayPal Capital?

First things first, what exactly is PayPal Capital? If you’re unfamiliar with PayPal Capital (or business loans in general) then it might be a bit of a mystery. Here’s the rundown on what PayPal Capital is.

PayPal Capital (also known as PayPal Working Capital) is a loan for businesses that is focused on helping small businesses expand without any hassle.

Obtaining funding from traditional sources like banks or credit cards has been becoming increasingly difficult in recent years, especially for building an independent business.

With all the hassle and frequent denial of loan applications through traditional means, alternative loan options are becoming more popular and inviting.

That’s where PayPal Working Capital comes in.

Paypal Working Capital Makes Getting A Business Loan Quick And Easy

A PayPal Capital loan has one fixed fee that isn’t affected by interest or any hidden fees, and doesn’t have a strict repayment schedule like other funding systems.

Repayments are taken as a small percentage of the sales you make through PayPal, and aren’t given a set amount or time frame that you have to adhere to (although you are required to meet certain repayment thresholds every 90 days).

Part Of Paypal Capital’s Appeal Is Its Convenience

If your application is successful, your funds can be deposited into your account in just a few minutes. This streamlines the process of receiving a loan by a massive amount, and makes it easier for you to get your business running in much less time.

The size of the loan depends on your PayPal account history; more specifically, it is based on your sales volume, whether you’ve used PayPal Capital before, and any previous transactions.

The maximum loan you can receive varies depending on the amount of sales you make through PayPal, and can be anything up to 35% of your annual PayPal sales up to a maximum loan of £150,000.

Pros And Cons Of Paypal Capital

There are plenty of good things about PayPal Capital, but there are also several drawbacks that means it isn’t the right choice for everybody. Here are some of the pros and cons of getting a loan through PayPal Working Capital.


  • With a single, fixed, fee you don’t have to worry about any interest or hidden costs
  • Unlike getting a loan from the bank, there isn’t any penalty for paying back the loan early
  • Instead of monthly payments, your loan is paid back through a small percentage of each sale made through PayPal
  • If you don’t make any sales, you don’t have to make any repayments
  • The application process is simple and, if you’re successful, you can receive your loan in mere minutes


  • While there aren’t set repayment dates, you are required to hit a certain minimum repayment level every 90 days
  • If you don’t already use PayPal for your business, getting a PayPal Capital loan can be a lengthy process
  • PayPal Capital is a relatively smaller loan compared to others, with a maximum loan of £150,000

PayPay Capital Qualifications

PayPay Capital Qualifications

To receive a loan through PayPal Working Capital, you need to meet certain criteria. These determine whether you are eligible for the loan, as well as how much funding you’ll receive.

First of all, you need to have had a PayPal Business or PayPal Premier account for more than 90 days.

This is the part that makes it more difficult and time-consuming for some small businesses, as if you don’t already have one of these accounts then you’ll need to make one before you can apply.
You also need to be registered in the United Kingdom for your application to be accepted.

Another criteria you need to meet is the minimum sales you process through PayPal annually. For a PayPal Business customer, your PayPal sales need to be a minimum of £9000 per year; for PayPal Premier customers, this amount is set to a minimum of £12,000 annually.

This is another step that can make it difficult for new businesses to apply, as you already need to have hit the minimum sale target for your application to be accepted.

There are also other factors that can affect whether you are eligible for the loan, such as your previous account history and whether you’ve received a loan through PayPal Working Capital before.

You’ll need to have fully repaid any previous PayPal Capital funds you’ve received before you are eligible. All these criteria need to have been met for at least 5 days before you can apply for PayPay Capital.

How The Deposits And Payments Work

So now that you know a bit more about what PayPal Working Capital is, the next thing you might be wondering is how the payment process works.

When applying for a PayPal Capital loan, you are required to choose an amount to pay as a fixed, one-off advance payment, and a percentage of your sales that will be taken to pay off the rest of your loan.

The amount you pay in advance will depend on a few factors such as the size of your business and how much you want to borrow, although we’ll take a closer look at these factors later on.

Your repayment percentage is the amount of your PayPal sales that will be automatically taken and used to repay your loan. This percentage is mostly up to your personal choice and business model, but you are required to reach a certain repayment threshold every 90 days.

This varies based on the options you choose in your application, but won’t be any more than 10% of your advance payment.

These two payment systems are dependent on each other, and the amount you pay upfront affects how much you’ll be paying back through sales. A higher cash advance will result in a lower repayment percentage, and vice versa.

You’re also able to make payments early without any penalty, unlike other loans that have early repayment charges.

As mentioned above, there are a few things that affect how much your cash advance will be. The main factors that control this are: the amount you apply for, your repayment percentage, and your PayPal sales history.

We’ve already covered that the higher the repayment percentage you choose, the lower your cash advance will need to be. The opposite is also true, and a higher advance will mean you have less to pay off in installments.

The size of your loan is another factor that impacts your cash advance. Like other loans, the more you borrow, the more you’ll need to pay upfront for security. As such, it follows that smaller loans will need a smaller advance and the maximum loan will need a much larger advance payment.

However, because the maximum amount you can get through PayPal Capital is £150,000 (which is smaller than other business loans) the advance for this is still smaller than usual.

Your PayPal sales history also affects how much your advance will be. In the same way that your sales history can have an impact on how much you are eligible for, it also changes how much you’ll have to put down as an advance payment.

While the amount of your advance and the legal requirements surrounding it can be confusing, all the information you need to know is also included in the application itself.

PayPal Capital Terms And Fees

PayPal Capital Terms And Fees

One of the most inviting aspects of PayPal Working Capital is that it functions as a merchant cash advance (a special type of business loan). This means that you only have to pay a single, fixed fee that isn’t subject to interest.

This fee is determined by your PayPal sales history, as well as your cash advance and repayment percentage. Because of the variability of the fee, there isn’t a set amount that your fee will be.

To make sure you understand the amount of your fixed fee (as well as the reasoning behind it), there is an explanation included in the application form before you complete it.

Application Process

Speaking of the application form, here is how the process works. It is quick and easy to do, and requires you to provide some basic information about yourself and your business.

You can apply directly through the PayPal website, where the form can be found on the PayPal Working Capital page. Simply sign in through your PayPal Business or PayPal Premium account and fill in the information required.

While calculating your eligibility, PayPal will take a look at your account and sales history to see how much you can receive.

You will then be able to select how much you want to receive based on the information you provided.

You’ll also need to select the amount you will be paying as your cash advance, as well as the percentage of your PayPal sales that will go towards repaying your loan.

Make sure you choose the right percentage for you and your business model, as you can’t change this after your application is processed.

If your application is successful, you will receive your payment in only a few minutes.

Sales & Advertising Transparency

The PayPal Working Capital page is upfront with its FAQs and Terms & Conditions links, which can be found in several parts of the webpage.

These go through many different aspects of applying for the loan, repayments, and other information about getting a business loan through PayPal Working Capital.

However, there are a few shortcomings that make it a bit more difficult to find out everything you need to know.

The loan calculator that used to appear on a previous version of the page has since been removed, making it impossible to know how much you can be eligible for without going through at least part of the application process.

It is also difficult to find any information on why a loan may be denied. This is particularly frustrating due to how frequently loans can be denied, seemingly without any reason. Without a list of criteria for a loan being denied, it can be hard to know what’s gone wrong with an application.

Customer Service And Support

Customer Service And Support

Because of how simple and quick the application and payment process is, it’s unlikely that you’d need to contact customer service about your loan. However, if you are contacting the PayPal customer service team there are a few things to look out for.

If there are any issues with your application (for example, if it is rejected), then you will receive a letter with information explaining why. However, this can take a while to arrive.

Additionally, because the application process is automated you may be denied a loan for no apparent reason. If this is the case, you may need to contact the customer service team directly.

Unfortunately, as is the case with most large companies, PayPal’s customer service is inconsistent and frequently sub-par.

PayPal in particular is notorious for its unhelpful and inconsistent customer support, and customers may be better off checking community forums to try and determine the issues that they are having.

That said, contacting customer service is still a good starting point for troubleshooting any problems you might be experiencing.

While their customer support is inconsistent, there are still plenty of helpful and friendly customer service advisors available that might be able to shed some more light on the situation.

Why Would Companies Use PayPal Capital?

PayPal Working Capital is best for small businesses that need a smaller loan and want to avoid the hassle of getting a loan through traditional methods.

The flexibility and customisation of your repayment plan possible through PayPal Capital makes it a great choice for business owners who are still starting off.

A day with no sales means a day without repayment, so businesses don’t need to worry about struggling to pay a loan without the sales to pay it off.

Additionally, smaller businesses can benefit from receiving the loan without the pressure of a strict repayment schedule and high costs. Because the maximum loan is fairly small compared to other loans out there, it is easier to pay off.

And without any early repayment charges, there isn’t any penalty for paying off the loan as soon as you have the means to do so.

Another reason why companies would use PayPal Working Capital is because of its single, fixed fee. Without any interest or hidden fees, you know exactly what and how much you’ll be repaying.

This means companies don’t need to worry about being blindsided by hidden costs that impact their repayment schedule.

Alternatives To PayPal Capital

If PayPal Working Capital doesn’t sound like the right choice for you, there are several alternative options out there that may suit you better.

Quick Capital is a good option if your business hasn’t fully taken off yet. Unlike PayPal Capital which requires a minimum annual sales of at least £9000, you can qualify for a Quick Capital loan with as little as a £500 monthly turnover.

You are also able to top up your funding as soon as you have repaid 60% of your advance. However, their repayment schedule is more strict (repayment is expected within 7 months) and you need to have a merchant account that has been active for at least 6 months.

Youlend Advance is similar to Quick Capital, but with fewer limits to eligibility and a higher possible loan. While you still need to be hitting an average monthly turnover of at least £500, there isn’t a minimum time your business account has to be active.

You also have the option to receive an even larger loan, up to £225,000, with an understandably longer repayment period of 18 months.

If your business has already found its feet but you need a loan to help you expand, then Liberis Business Cash Advance might be just what you need.

While you need to have traded for at least 4 months and make a minimum of £2500 per month, you are able to receive a maximum loan of £300,000 – twice that of PayPal Capital.

The repayment fee is also unspecified, meaning you have more flexibility when it comes to paying off your loan.

PayPal Capital Phone Number

If you are interested in PayPal Working Credit and want to find out more or apply, you can contact their customer support team on 08003687176. Their office hours are Monday through Friday from 8:30 AM – 4:30 PM.

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