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Paypal Working Capital – What it is and How it Works

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I’ve had a few readers asking me if I knew of any resources for micro or small businesses to get a business loan from. Unfortunately, banks generally won’t lend to tiny businesses. Don’t feel alone though, the majority of small business loan applications get denied. While I’m a huge fan of growing your business without debt (read more about that in this post), Paypal Working Capital might be a good fit for your Silhouette or Cricut small business.

What is Paypal Working Capital?

Paypal Working Capital is a division of Paypal that lends money to small businesses. If you have a Paypal account in good standing, it’s likely that you’ll get approved for a loan because Paypal bases their decision solely off of your relationship with them. Additionally, Paypal does not inquiry your credit to make a decision.

What are the requirements to get a loan from Paypal Working Capital?

You can borrow up to 15% of your total Paypal sales from the previous 12 months – capped at $97,000. You must have a Paypal Business Account, be a Paypal member for at least 3 months, and have a minimum of between $15,000 and $20,000 (varies per account) in sales on Paypal within the last 12 months. (This number may seem huge, but if your business has been on Paypal for 12 months – it’s an average of only $288 per week.)

How do you pay back the Paypal Working Capital loan?

This is my favorite part of the Working Capital program. Paypal deducts a portion of your daily sales to help pay back your loan over time. It’s okay to have a day without sales, you won’t fall behind on paying your loan. Furthermore, you’ll be able to determine the daily percentage of sales that Paypal takes when accepting your loan.

How do you apply for Paypal Working Capital and what should you expect?

You can apply to Paypal Working Capital at this link. You’ll complete a quick application (takes about 5 minutes), then Paypal will provide an instant decision about your loan. If you are approved for a loan, you choose some basic loan settings and review the loan cost. Rather than a percentage of the loan being charged for interest, you choose a flat rate. If you accept the loan, you will receive funds within minutes that you will be able to spend for your business needs.

Note: I took out a loan for the purpose of this post and paid it back about a week later. I was not contracted to write this post.

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Paypal Working Capital - What it is and How it Works for Your Silhouette Cameo or Cricut Explore Business - by

Talia Foster

Monday 12th of September 2016

Thank you for this information!


Tuesday 13th of September 2016

My pleasure, Talia!