05/14/2019 at 7:20 pm #61917Anonymous
Received a very aggressive offer via phone 2-3 months ago for paypal working capital. 10k @ 4%, no other fees, 10% repayment. Got this email today.
Thank you for being a PayPal Working Capital borrower – we truly appreciate your business and hope your loan has helped your business grow. We have been receiving questions from borrowers about how eBay’s new Managed Payments program could impact their ability to use PayPal Working Capital. We thought it would be helpful to share the most frequently asked questions with you to ensure you are informed about any potential issues that may impact your current loan and future access to additional loans. Please see below for the most frequently asked questions.
Will I be able to automatically repay my PayPal Working Capital loan as I always have if I opt into eBay Managed Payments at this time?
No, if you opt into eBay Managed Payments, even when PayPal is included as a checkout option, loan repayments will not be automatically made from your eBay sales and you may need to repay your loan manually. With eBay Managed Payments, eBay will manage the end-to-end payments experience on the eBay platform, and individual merchant sales will no longer be visible to PayPal due to the configuration of eBay Managed Payments. That means that even when PayPal is included as a checkout option for buyers, PayPal will no longer be able to see your sales to deduct automatic repayments from your eBay sales. If you decide to opt into eBay Managed Payments, you may need to repay the loan manually and will need to call PayPal Working Capital Merchant Assistance to discuss your repayment options.
Will enrolling in eBay Managed Payments at this time affect my future access to PayPal Working Capital?
Enrolling in eBay Managed Payments – even when PayPal is included as a checkout option – will most likely affect your future access to PayPal Working Capital in two ways. Because your individual merchant sales on eBay Managed Payments will not be visible to PayPal due to the configuration of the eBay platform, these sales cannot be used to either (1) repay your existing loan, or (2) underwrite future loans – as loan amounts are impacted by the volume of sales you process with PayPal, and that PayPal has visibility into.
Are there important terms within my current PayPal Working Capital loan agreement that I should understand if I were to consider eBay Managed Payments?
If you are invited to opt into eBay Managed Payments, and decide to do so, you will not be honoring the terms and conditions of your current PayPal Working Capital agreement, and will be in default, due to the configuration of eBay Managed Payments. In the Terms and Conditions you agreed to:
1. Maintain PayPal as a preferred payment method set forth on Business’ website and/or checkout options in a no less favorable position than as provided on the date of this Agreement;
2. Not take any action to discourage PayPal use or permit any event to occur which could have an adverse effect on the acceptance, authorization or use of PayPal by purchasers of the Business’ products and/or services or allow any event to occur that could cause a diversion of any of the Business’ PayPal Sales Proceeds from PayPal to any other entity;
3. Conduct business in a manner consistent with past practice;
You can review the current, full terms at: http://www.paypal.com/workingcapital/terms
What is PayPal doing to provide access to future financing opportunities in light of the eBay Managed Payments program?
We truly value your business and are working diligently on modifications to PayPal Working Capital so that it works in an environment that considers sales processed with eBay Managed Payments. PayPal is also working to make alternative financing solutions available that will continue to help your business thrive. We will keep you updated as new capabilities and features are released.
In addition to providing access to business financing, PayPal allows you to sell globally with peace of mind due to our best-in-class Seller Protection program. With Seller Protection we are there to help make sure things go well even after checkout by safeguarding your eligible sales against fraudulent buyer claims. With PayPal you can accept payments in 100+ currencies, withdraw funds to your bank account in 56 currencies and hold balances in your PayPal account in 25 currencies. We hope you will stay with PayPal.
If you choose to enroll in eBay Managed Payments at this time, please contact PayPal Working Capital Merchant Assistance at your earliest convenience at 1-877-589-5164, Monday-Thursday 8am-8pm EST or Friday 8am-6:30pm EST to discuss your loan.
If you have other questions or concerns, please call our PayPal Working Capital Customer Service Team at 1-877-981-2163, Monday-Friday, 9am-8pm EST. We would be happy to hear from you.
The PayPal Working Capital Team0
05/14/2019 at 9:35 pm #61922
Did you opt into eBay’s Managed Payments?
–If you did, how are you paying off the loan if Paypal is not your primary payment option?0
05/15/2019 at 7:53 am #61933Anonymous
No, not in ebay managed payments. I just posted as an fyi to sellers who are considering a paypal working capital loan & are not in ebay payments. If a pwc loan is a large part of your q3-4 strategy, looks best to stay with paypal for now.0
05/15/2019 at 8:05 am #61934
05/15/2019 at 8:18 am #61937Anonymous
Yes, but that is a substantially different product than PWC. Square is a 6 month repayment, have different requirements. PWC is 99% ebay sales. PWC is also funded by the largest industrial bank on the net & it is worthwhile to do some business with them for a variety of reasons.0
05/15/2019 at 8:26 am #61941
I do like Paypal Working Capital because they take a certain percentage till paid off. It’s been nice.
Square Capital seems to have an 18 month payback period. All our Working Capital loans have been paid off in that time frame: https://squareup.com/help/us/en/article/6119
“Your entire loan balance must be repaid in full within 18 months of loan approval. If the loan hasn’t been repaid in full at the end of 18 months, the remaining loan balance will be due in full.”0
05/15/2019 at 8:39 am #61943Anonymous
The 18 month re-payment is not the ebay product, it is the term for a merchant advance for users of square directly. If you process cc transactions on the square network for your farmer’s market stand, for example, you can get that term.0
05/15/2019 at 8:49 am #61945
Ah, you’re correct. Very weird they only have six months loans for eBay sellers. That would be a no-go for us.
18 months is a good repayment time.
6 months is too brief, making the monthly payments too high and not helpful.0
05/15/2019 at 8:32 am #61942Retro Treasures WVParticipant
Yes I got something in the mail from ebay about the square capital loan program.
I didn’t really read it as I get a much better deal for a personal loan from my local credit union.0
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