PayPal Offers Cash Advances to SMBs in U.K. (July 28, 2014)
PayPal is launching its Working Capital program in the U.K. this fall for select small to midsize business customers, offering cash advances against their future sales. PayPal says its relationships with business customers enable it to approve and provide funds in minutes, based on a quick online application and the SMB’s PayPal history. Because PayPal Working Capital is a merchant cash advance, not a loan, there is no credit check and the advance does not impact a customer’s business or personal credit record. Businesses repay the advance with a share of their PayPal sales—if they have a day without PayPal sales, they don’t repay anything that day. Customers are informed of a single, fixed fee before they sign up, and there are no interest charges or late payment fees, according to PayPal.
PayPal launched Working Capital in the U.S. last September, and the program has provided more than $140 million to SMBs, with 90 percent of participants reporting they would recommend it to other firms, according to reports.
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