By having a higher repayment percentage, the cost of the fixed fee will be lowered, and vice versa. It is, however, also worth noting that with PayPal Working Capital you will not be able to sell future receivables, as you can with other funding options like a merchant cash advance.
Who Funds PayPal Working Capital?
Back in 1999, PayPal was first developed and instigated as a money transfer service, funded by John Malloy of BlueRun Ventures.
How Is PayPal Working Capital Calculated?
PayPal Working Capital is calculated based on your PayPal sales history and volumes, your previous account history, and if you have taken out a PayPal Working Capital loan previously. These factors are what determines the maximum cash advance you’re able to have.
Merchant Cash Advance
Whilst PayPal Working Capital operates similarly to a merchant cash advance, particularly in the way in which you repay it, it does in fact differ from a merchant cash advance and is instead simply a short-term business loan. With a merchant cash advance you can sell on future receivables, but with working capital this is not an option.
Furthermore, whilst online PayPal Working Capital reviews are generally positive, some who have used PayPal Working Capital have complained about a range of different problems, including a lack of reliability, problems with approval, and even PayPal Working Capital being difficult to apply for initially.
It is also worth taking note that with PayPal Working Capital, there is no payday loans in Carthage advantage to making early repayments, which some online reviewers have also taken time to criticise. These factors are certainly something to very carefully consider before opting for this particular funding option.
The merchant cash advance is a great other option, as it carries with it a great number of benefits. This product is also offered to you on an interest free basis, with no other hidden fees. It is to be repaid in accordance with the fixed fee which you and the lender initially agreed upon, and in line with your monthly revenue through card sales.
As such, if your business does not use PayPal already, then simply going with a merchant cash advance over PayPal Working Capital will be a much more straightforward option for you, whilst still providing you with a brilliantly flexible repayment plan.
The application process is also incredibly quick; you can complete the relevant forms entirely online and in the space of just a few minutes. The same as with PayPal Working Capital, you can expect to see the funds in your bank account in just a few minutes once your application has been accepted, making it just as simple and convenient, and a great way to solve any of your businesses’ cash flow problems rapidly and efficiently.
The merchant cash advance product is also relatively easy to qualify for, and doesn’t rely on you having to have a PayPal account already well established. Instead you are simply assessed on the number of card sales processed by your business each month, and as such, a merchant cash advance is going to be an alternative funding option that is much better suited to many more small businesses than PayPal Working Capital is.
The funding that is offered to you by a merchant cash advance is immensely convenient, flexible and stable, and definitely a great funding option for you to consider.
PayPal Working Capital certainly has the potential to be a great funding option for several business owners who already heavily rely on PayPal in the general, day to day, running of their business. It is a quick, convenient and ultimately flexible funding option that can surely aid the growth and overall development of your company.