PayPal Working Capital Overview

PayPal Working Capital Business Loans logo
  • PayPal Working Capital allows UK businesses to access finance. Find out what options are available, whether your business is eligible, and how to apply.
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Last updated on 28 June 2022.

PayPal Working Capital is a funding solution that may allow you to get business finance delivered directly into your PayPal account, with repayments automatically deducted as a percentage of your sales.

And as long as you’ve paid off one cash advance, you can apply for another, making it a potential ongoing source of finance for PayPal’s business customers.

Find out more about how you could use your PayPal account to grow your business, including how Working Capital from PayPal works, whether you’re eligible, and how to apply.

What is PayPal Working Capital?

PayPal Working Capital is a finance product offered to UK businesses that have had a PayPal Business for three months or more.

For a fixed fee, you could use PayPal Working Capital to receive a cash advance based on your PayPal sales volumes and account history. You then choose a repayment percentage that works for your business.

» COMPARE: Business loans

How does PayPal Working Capital work?

When you apply you can then select the amount of cash you need - the maximum amount will be based on your PayPal sales and account behaviour - and the percentage of future PayPal sales that you’re happy to count towards repayment.

Once approved, you’ll receive the cash directly into your PayPal account, and continue to make repayments from your sales until your balance is paid in full.

If you’re able, you can also pay off the cash advance early in full with no early repayment fee.

Key features of PayPal Working Capital

  • One fixed fee for using the service
  • Repay your cash advance as a percentage of your sales
  • Approval is based on sales into your PayPal account
  • Available currently to UK-registered PayPal Business account customers of three months or more
  • The repayment amount is calculated after the PayPal transaction fee has been deducted
  • You can apply for subsequent PayPal Working Capital cash advances as soon as 3 days after your previous one is paid off

Am I eligible for PayPal Working Capital?

In order to access PayPal working capital, you must:

  • have had a PayPal business account for three months or more
  • be registered in the UK
  • have minimum PayPal sales of £9,000 per year
  • have repaid any previous PayPal Working Capital cash advances
  • meet these requirements for at least five days before your apply

How do I apply for PayPal Working Capital?

To apply you will need to complete the application form with some basic information about your business. As long as you’re the authorised account holder, you can use the online form.

PayPal will automatically prevent you from accessing the application form if your business doesn’t meet the eligibility criteria.

PayPal Working Capital rates, fees and costs

You pay one fixed fee to use Paypal Working Capital, which is based on your sales, account behaviour, cash advance amount, and repayment percentage.

The higher the percentage of your daily sales you commit to repayment, the lower your fixed fee will be. You don’t pay any additional interest, late fees, or fees for additional repayments.

Your first repayment will usually be taken around 3 days after you receive your funds, with subsequent payments taken as a percentage of each sale until the balance is settled.

You should be aware that you can’t change your repayment percentage once you’ve signed up for PayPal Working Capital.

» COMPARE: Business bank accounts

What do PayPal customers say?

On Trustpilot, PayPal has been rated 1.2 out of 5 based on 21,649 reviews.

On the App Store, the PayPal app has been rated 4.8 out of 5 based on more than one million reviews. On Google Play, the PayPal app has been rated 4.4 out of 5 based on 2.58 million reviews.

This information is correct as of 24 June 2022.

Conclusion

You could use PayPal Working Capital to have a cash advance delivered into your Paypal account minutes after a successful application.

After that, you don’t need to take any action to pay off your loan – repayments will be automatically deducted as a percentage of any future PayPal sales, along with a fixed fee, until your debt is settled.

In order to use the service, you will need to meet the eligibility criteria, and you may not be able to choose your preferred repayment if your cash advance is too high.

You can apply for PayPal Working Capital today through the PayPal website. You could also compare providers using the comparison tool on this page.

PayPal Working Capital FAQs

Is PayPal still offering Working Capital?

Yes, currently you can still access Working Capital through PayPal.

Premier Account holders were previously able to use the service but you now have to be a Business Account holder.

Does PayPal Working Capital show on your credit report?

No, PayPal says it uses your businesses Paypal sales history to determine your eligibility, so your PayPal Working capital application will not impact your credit report.

Why was PayPal Working Capital declined?

If your application for PayPal Working Capital was unsuccessful, it may be because you do not meet the eligibility requirements, which include holding your PayPal Business Account for three months or more, processing at least £9,000 in PayPal sales per year and being registered in the UK.

What happens if you default on PayPal Working Capital?

As PayPal deducts repayments from your sales, there are no penalties if your income fluctuates or if you have any days without a sale.

However, you are required to reach a minimum repayment level every 90 days, which is dictated by the terms of your agreement with PayPal. If you don’t hit this level, you may have to pay off your entire cash advance in full.

Services offered by this provider may change over time. Always check Ts&Cs.