Author Topic: PayPal Working Capital  (Read 3704 times)

Rob L

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PayPal Working Capital
« on: August 07, 2014, 11:18:00 AM »
Thought this interesting:

https://www.paypal.com/webapps/workingcapital/

Funny, but their logo is very similar to Prosper.
« Last Edit: August 07, 2014, 11:20:22 AM by Rob L »

Fred93

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Re: PayPal Working Capital
« Reply #1 on: August 07, 2014, 04:39:00 PM »
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your maximum loan amount is approximately 8% of the sales your business processed through PayPal in the past 12 months. The maximum amount may be less for new or larger businesses, or for businesses with volatile or seasonally variable sales.

Well, that's going to limit them to a small set of business types.  Won't work for restauants, etc.  Works mostly for web-based mail-order.

Paypal found a niche where they have an advantage, so good for them, however they aren't going to be much of a threat to the other business loans companies.

Ran

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Re: PayPal Working Capital
« Reply #2 on: August 07, 2014, 05:00:26 PM »
Interested to know what the equivalent interest rate their fees convert to. PayPal has the natural advantage of knowing the business revenue history,  similar to local banks, compared to a LC.

Fred93

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Re: PayPal Working Capital
« Reply #3 on: August 07, 2014, 06:17:20 PM »
PayPal has the natural advantage of knowing the business revenue history,  similar to local banks, compared to a LC.

Any lender can now obtain electronic bank records directly from the business's bank, and thus can verify that deposits are consistent with reported sales, etc. 

I believe this is the sort of stuff that the new web based lenders Funding Circle, Dealstruck, etc are doing, and I suspect it is the sort of thing that LC is doing for their new secretive business loans.

SeanMCA

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Re: PayPal Working Capital
« Reply #4 on: August 08, 2014, 01:00:23 AM »
I was on a conference call with Tom Green at Lending Club the other day and he said they dont verify the legitimacy of the bank statements.
I'm a merchant cash advance veteran exploring the p2p lending waters.

Fred93

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Re: PayPal Working Capital
« Reply #5 on: August 08, 2014, 01:25:32 AM »
I was on a conference call with Tom Green at Lending Club the other day and he said they dont verify the legitimacy of the bank statements.

Did he say what they do do?  Do they have humans look at them?    ???

LonghornSF

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Re: PayPal Working Capital
« Reply #6 on: August 08, 2014, 05:07:54 PM »
I was on a conference call with Tom Green at Lending Club the other day and he said they dont verify the legitimacy of the bank statements.

Did he say what they do do?  Do they have humans look at them?    ???

Most of the players you listed don't electronically verify yet. It's not that easy to setup from a product standpoint and it isn't free either. Long term that's the direction the industry is heading though.

SeanMCA

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Re: PayPal Working Capital
« Reply #7 on: August 09, 2014, 01:21:45 AM »
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Did he say what they do do?  Do they have humans look at them?    ???

yes humans check the sales numbers against whats on the application. They might also verify using a tax return instead.
I'm a merchant cash advance veteran exploring the p2p lending waters.