Apply for PayPal credit - this should be noted

To finance your own growing business, Paypal offers a business loan. Here we explain how to apply for it and what needs to be considered.

Apply for PayPal business loan: these are the requirements

A few years ago, PayPal entered the lending business of small and medium-sized companies. In the meantime, companies from Germany can also apply for the so-called "Paypal Working Capital". For a PayPal business loan, you must meet the following requirements:

• You must have had a PayPal business account for at least three months.
• You must have an annual PayPal turnover of at least 12, 000 euros.
• You must have paid off any business loan that may already be in Paypal.
• You must not be insolvent.

Advantages of PayPal credit

• Flexible repayments: You only pay when you receive payments yourself. Example: If you generate EUR 1, 000 in sales on day one, PayPal will automatically collect EUR 200 with a repayment share of 20 percent and keep EUR 800. If you have not booked any sales on day two, you will not pay anything back to PayPal.
• You determine the repayment share yourself: this must be between 10 and 30 percent.
• There is only a transparent fixed fee that you are aware of beforehand. The fee is determined when the application is submitted. There is no regular interest.
• You will receive the money immediately: the desired loan amount will be credited to your PayPal account within a few seconds.
• There are no late fees, no prepayment penalty and no hidden fees
• There is no external credit check like Schufa: For PayPal, the sales history is important.

Disadvantages of the loan

• You must repay the entire loan within 18 months.
• The lower the percentage of repayment, the higher the fee to be paid.
• Early repayments do not reduce the fee payable.
• You have to show relatively high PayPal sales so that you can use "PayPal Working Capital".

Apply for business credit in just a few steps

It only takes a few minutes to apply for the PayPal business credit:

• The first step is to register with PayPal.
• Confirm your details so that PayPal can check your creditworthiness.
• If approved, PayPal will submit your loan offer to you.
• Then you set the loan amount.
• In the next step you select the repayment part of your PayPal transaction.
• Then all you have to do is check the terms of the contract and agree to them.
• After approval, PayPal will automatically credit the business loan to your PayPal account.