PayPal Holdings, Inc. today announced that it has reached $30 billion in global loan originations and has extended over 1.4 million loans and cash advances to over 420,000 business accounts worldwide since 2013, filling a critical gap for small businesses seeking capital to maintain a healthy cash flow and grow.
Small businesses are vital to both local communities and the global economy. They are innovators, opportunity makers, and community builders. Nearly 40% of private sector payrolls and over 43% of the US GDP are paid by small firms. Access to money remains a significant obstacle for SMBs in spite of these efforts. Access to cash is currently a challenge for over three-quarters of small firms as they work to expand or preserve their operations.
PayPal provides finance options, such as PayPal Working Capital in the US, UK, Germany, France, Australia, and the Netherlands, and PayPal Business Loan in the US, to support the expansion and success of small businesses. In contrast to PayPal Working Capital, which was introduced in 2013 and is paid back as a percentage of a company’s PayPal sales, PayPal Business Loans, which were introduced in 2017, are term loans with fixed repayments and are not only for companies who use PayPal to process payments. PayPal Working Capital and PayPal Business Loans are used by small businesses to finance inventory purchases, payroll processing, hiring new staff, business investments, and expansion.
As stated by Michelle Gill, PayPal’s EVP and General Manager of SMB and Financial Services, “Obtaining funding is routinely one of the biggest obstacles small businesses encounter when trying to grow and sustain their operations.” Small firms find it challenging to obtain traditional business loans, and the application procedure can be onerous and time-consuming. Approved loans are funded in a matter of minutes, and PayPal’s lending options offer a simplified online application process that eliminates the need for significant documentation and rigorous credit checks. In response to this urgent need, we developed PayPal Working Capital and PayPal Business Loan, offering a rapid and ethical means of supplying much-needed funding to support the expansion of small businesses.
PayPal Working Capital and PayPal Business Loan have proven to be extremely beneficial to small businesses, with both solutions receiving excellent client feedback. Furthermore, our clients renew loans or use our offerings more than 90% of the time, and both products have earned Net Promoter Scores of 76 and 85, respectively. After using PayPal Working Capital and obtaining a PayPal Business Loan, businesses additionally saw a 36% and 16% boost in their overall PayPal payment volume, respectively.
D’Shawn Russell, founder and CEO of Southern Elegance Candle Co., a specialty candle company based in Raeford, North Carolina, said, “As a woman of color entrepreneur, one of the biggest challenges I’ve faced is securing access to capital.” “Being able to obtain funding through PayPal Working Capital has been a crucial component of expanding my business, as small business owners are frequently rejected by traditional banks.” I was making $100,000 in sales when I applied for my first PayPal Working Capital loan. My business has grown into a multimillion-dollar enterprise thanks to the numerous working capital loans I’ve received since then.
