Similar to Square, PayPal is another payment processing company that also provides merchant cash advances. Their merchant cash advance product is called PayPal Working Capital. PayPal can extend you an advance in an amount that’s equal to 35% of your annual PayPal sales, with a cap of $97,000 for your first advance.
To qualify for PayPal Working Capital, you must have a PayPal Business or Premier account for at least three months. In addition, you must be processing at least $20,000 in annual PayPal sales (or be projected to do so) if you have a Premier account or at least $15,000 (or be projected to do so) in annual PayPal sales if you have a Business PayPal account.
In terms of MCA fees, you’ll pay 10% to 30% of your daily PayPal sales plus a flat fee determined by the daily percentage, loan amount, and PayPal sales history with this product.
Although PayPal offers some flexibility in the repayment percentage that you want to be deducted from your daily credit and debit card sales, you are required to meet a minimum repayment requirement every 90 days.
With this in mind, however, if you’re a PayPal customer looking for a simple and affordable way to access financing, turning to PayPal Working Capital might be a viable option for you.