PayPal Holdings, Inc. has announced a significant milestone, surpassing $30 billion in global loan originations. Since 2013, the company has facilitated over 1.4 million loans and cash advances to more than 420,000 business accounts worldwide. This achievement highlights PayPal’s commitment to tackling the ongoing challenge of capital access for small businesses.
Small businesses contribute over 43% to the U.S. GDP and nearly 40% of private sector payroll, yet a staggering three-quarters still express concerns about securing the necessary capital for growth and sustainability. In response, PayPal is expanding its range of financing solutions specifically designed for small and medium-sized enterprises.
The PayPal Business Loan and PayPal Working Capital programs provide accessible financing options. Launched in 2013, PayPal Working Capital allows businesses to repay loans as a percentage of their PayPal sales and is currently offered in multiple countries including the U.S., UK, Germany, France, Australia, and the Netherlands. The PayPal Business Loan, available since 2017, features fixed repayment terms and caters to businesses that may not process payments through PayPal.
According to company officials, access to capital is a persistent challenge for small business owners seeking to maintain and grow their operations. The traditional loan application process can be arduous and time-consuming. PayPal addresses these issues with a streamlined online application that eliminates extensive paperwork and lengthy credit checks. The company reports that approved loans can be funded within minutes.
PayPal’s financing options are reportedly utilized for a variety of purposes, including inventory purchases, hiring staff, and payroll management. Moreover, businesses tend to renew loans or access PayPal’s financing services over 90% of the time. Following the adoption of PayPal Working Capital, businesses experienced a 36% increase in PayPal payment volume, while those using the PayPal Business Loan saw a 16% increase.
Customer satisfaction ratings reflect the effectiveness of these offerings, with PayPal Working Capital achieving a Net Promoter Score of 76 and the PayPal Business Loan scoring an impressive 85.
