You can get loans for up to 35% of your annual PayPal sales, but your first loan will be capped at $200,000. If you successfully pay it back (and we know you will), then your maximum loan size increases to $300,000 for future loans.
Frustratingly, PayPal doesn’t advertise its fees anywhere. That being said, in our research we came across business owners who said they had fees as low as 2% and as high as 25%—a pretty broad range.
Some of those business owners were on their third our fourth loan, and they said that they got better fee offers with later loans. So your fees will likely depend on everything from your loan amount to your repayment percentage to how many loans you’ve had with PayPal before.
So what kind of percentage can you expect? Well, on its website, PayPal says most people will pay either 5% or 10%. But we saw reports from business owners who chose to pay a much higher percentage, so you might have more options.
There’s a few final things to note about PayPal Working Capital:
- Your repayment percentage will include tax and shipping costs.
- You can have only one PayPal loan at a time.
- PayPal will monitor your sales for unexpected drop-offs.
Stripe is the latest payment processor to start offering financing—and it’s the tightest lipped.
So we know the basics: if Stripe likes what it sees in your account, it will offer you financing. Sometimes that’s a loan, with a set repayment term, but sometimes it’s an MCA without a set term. Either way, your financing comes with a fixed fee, and you repay your funds with a percentage of your Stripe credit card sales.