PayPal Working Capital Review: Quick & Flexible Funding
- Min. Amount
- $1,000
- Max. Amount
- $300,000
- APR
- Fee based
Our verdict
PayPal promises a fast loan with minimal requirements — but inconsistent sales could get you denied.
PayPal working capital could be a good option for fast financing if you're already a PayPal Business or Premier customer. In most cases, applying takes little to no paperwork and PayPal doesn't check your credit score. But you won't know your loan offer or fees until you apply, and irregular sales could get you turned down.
Best for: Paypal Business or Premier customers who need quick funding and flexible repayments.
Pros
-
Receive funds within minutes after approval
-
No minimum credit score
-
No paperwork required in most cases
Cons
-
Minimum payment required every 90 days
-
Repeat borrowers complain they were declined
-
Repayment comes out of every PayPal sale
Is PayPal Working Capital legit?
Yes, PayPal Working Capital is a legitimate lending service. It’s part of one of the most widely used payment processors in the world. And it uses SSL encryption to protect your information when you apply or use its website.
While it’s had its share of data breaches — standard for a tech company of its size — it typically patches them up within a day. It issues its loans through WebBank, which is a member of the Federal Deposit Insurance Corporation (FDIC).
What makes PayPal Working Capital loans shine?
PayPal Working Capital loans are a great option for existing PayPal users with a Premier or Business account. The application takes just a few minutes to complete and can be done 100% online. There’s no minimum credit score required — PayPal simply looks at your revenue on the platform to make a lending decision. That means you may not have to submit much documentation — a good option for anyone looking for a no-doc business loan.
Once you submit your application, you’ll receive an answer in minutes. And funding is just as fast — you should receive it in your PayPal account the very same day. Repayment is a breeze, too, with a percentage of your PayPal sales automatically taken out to pay off the loan, so you don’t have to worry about missed payments. Plus, if you decide to repay the loan early, there are no early repayment penalties.
Where PayPal Working Capital loans falls short
The biggest downside to PayPal Working Capital loans is a lack of transparency on how lending decisions are made. Several customers have complained that they meet the criteria listed on PayPal’s website but were turned down with no explanation.
There’s also a lack of transparency regarding fees. The PayPal Working Capital website offers no information on how fees are determined — you just have to apply and see what terms are offered. And even though it’s an easy way to get fast funding, it may not be the most affordable loan option out there.
PayPal Working Capital loan details
| Min. Amount | $1,000 |
| Max. Amount | $200,000 for first-time borrowers $200,000 for first-time borrowers$300,000 for repeat borrowers |
| Loan term | Varies |
| APR | Fee-based, determined by your loan amount, sales history and chosen repayment percentage. |
| Requirements | Have a PayPal Premier or Business account for 3+ months with at least $20,000 in annual PayPal sales for Premier or $15,000 for Business. Have no outstanding PayPal Working Capital loans. |
| Turnaround | Receive funds within minutes after approval |
| Fees | No early prepayment fee No late fees |
| Availability |
PayPal Working Capital contact information
| Phone number | 877-981-2128 |
| Customer service hours | Weekdays: 9 a.m. to 8 p.m. ET |
| N/A | |
| X, formerly Twitter | @PayPal |
| @PayPalUSA |
How to qualify for PayPal Working Capital business loans
You can qualify for a PayPal Working Capital loan if you meet the following requirements:
- Be a PayPal Premier or PayPal Business account owner for at least 90 days
- Have at least $15,000 in PayPal Business or $20,000 in PayPal Premier annual sales
- Have no outstanding PayPal Working Capital debt
PayPal doesn’t check your credit score for its Working Capital loans, so it won’t show up on your credit report if you apply. While PayPal doesn’t specify if it reports to credit bureaus, this type of financing usually stays off your business credit report entirely unless you default on the loan.
How to apply
The application for a PayPal Working Capital business loan can be completed online and takes just a few minutes. Here’s how the process goes:
- Fill out the short application. Log in to your PayPal Business account and answer a few quick questions — no credit check or piles of paperwork required. Most people receive a decision almost instantly.
- Pick your repayment terms. If approved, you’ll get to choose what percentage of your PayPal sales goes toward repaying the loan. PayPal shows you your total loan amount, the fixed fee and an estimate of how long it might take to pay off.
- Accept the loan offer. Once you’re happy with the terms, just review and agree to them. PayPal sends the money straight to your PayPal Business account — usually within minutes.
- Start repaying automatically. A portion of each PayPal sale you make automatically goes toward your loan balance. You can also make extra payments anytime you want without prepayment fees.
How PayPal Working Capital compares to other lenders
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
PayPal reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | B+ |
| BBB customer reviews | 1.15 out of 5 stars, based on 1,508 customer reviews |
| Trustpilot Score | 1.3 out of 5 stars, based on 32,648 customer reviews |
| Customer reviews verified as of | 05 March 2025 |
On Trustpilot, PayPal gets overwhelmingly negative reviews from tens of thousands of customers, though the vast majority are about PayPal’s other services. The few reviews that address Working Capital loans are a mix of compliments and complaints. Some customers praise the fast application process and the affordable automatic repayments. Others complain they were rejected for a Working Capital loan with little explanation.
It’s a similar picture on the Better Business Bureau (BBB) website, with thousands of complaints lodged against the company. But PayPal responds to complaints on the BBB site and tries to resolve issues, which has earned it a B+ rating. Of those who leave positive reviews, many report being happy with PayPal’s consumer services, including its purchase protection, and marvel at the number of negative reviews — but they make no mention of Working Capital loans.
What do people on Reddit say?
One business owner shared that they’ve taken out and successfully paid off multiple loans, while another plans to borrow a larger amount after repaying their first loan. On the flip side, a couple of users were frustrated about not getting approved and weren’t sure why. There are also some questions about whether a personal guarantee is required and what happens if a business closes before the loan is paid off.
Frequently asked questions
How much will PayPal Working Capital give me?
The maximum amount for PayPal Working Capital loans is $200,000 for first-time borrowers and $300,000 for repeat borrowers.
Why am I not eligible for PayPal Working Capital?
There are a few reasons you might not be eligible for a PayPal Working Capital loan. It could be as simple as outdated account information or a recent change in your sales volume. Some businesses are also ineligible based on issues like chargebacks or a negative balance. If you’re unsure why you were denied, try contacting PayPal’s customer support for clarification.
How does the PayPal Working Capital business loan work?
A PayPal Working Capital loan is essentially an advance on your future PayPal sales. Instead of paying interest, you pay a fixed fee, and repayments happen automatically as a percentage of each sale you make. It’s similar to a merchant cash advance but with one big difference — you must pay at least 10% of your total loan amount (including fees) every 90 days, even if your sales fluctuate.
Does PayPal Working Capital affect credit score?
PayPal bases loan decisions on your business revenue, so there’s no hit to your credit score. The company also doesn’t report payments to credit bureaus but will alert them if you default on the loan.
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Your reviews
Anna Finder
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