PayPal launches loan service for SMEs

Whilst not in the UK yet, Australia is the first market outside the United States to receive the service, we will see the new service during 2015.

PayPal customer experience and solutions director, Kareem Al-Bassam, said that Australia was chosen due to demand from SMEs for wider choice of financing options, but expected the UK to be the next territory

SMEs that want to take up the new service will complete a four-step application process; eligibility can be checked by PayPal merchants which have held an account for at least 12 months via the provider’s web site.

Those that qualify are then able to select the amount of the loan (up to eight per cent of their annual PayPal sales), and what percentage of each PayPal-facilitated transaction will be allocated to repay the facility.

Borrowers then pay a fee which is decided up front, and based on the amount borrowed.

PayPal said there are no hidden charges, nor penalties for late payment or early settlement of the full loan.

“Working Capital is ideal for SME owners who need fast, simple and flexible solutions to fund activities, like staffing up ahead of seasonal demand or buying additional inventory to meet orders,” Al-Bassam said.

  Share:

Leave a Reply

*