PayPal brings small biz working capital programme to UK
23 July 2014 | 6348 views | 1
PayPal is bringing its working capital programme for small business customers to the UK, offering firms cash advances against future sales.
Available to select PayPal business customers - including eBay sellers - this autumn ahead of a wider rollout, the service is designed to attract small firms still struggling to get access to cash from more traditional lenders.
PayPal uses firms' sales history and a quick online application form to make funding decision in minutes. Users hand over a single fixed fee and then repay the loan with a share of their PayPal sales, meaning that there are no minimum monthly payments.
Since launching in the US in September, the working capital programme has seen PayPal hand over $140 million to small- and medium-sized businesses, with 90% of participants saying that would recommend it to other firms.
Cameron McLean, MD, PayPal UK, says: "Small businesses are the lifeblood of the British economy. But seven years after the start of the credit crunch, many of them are still struggling to get funding.
"PayPal is well placed to make a difference. We've been helping businesses thrive online for almost 15 years. And our close relationship with our business customers means we can approve a cash advance and provide the money in minutes."