PayPal has announced that it’s now lent £400 million to British small businesses through PayPal Working Capital.
Bridging the Funding Gap
Launched in 2014, PayPal Working Capital has now lent £400 million to over 22,000 business owners in a variety of industries and sectors.
“PayPal made its name pioneering e-commerce, making it possible for businesses to grow their sales and reach millions more customers online,” said Mark Brant, Managing Director at PayPal UK.” In the years that followed the credit crunch, we saw the impact it was having on our small business customers, many of whom were struggling. We saw an opportunity for us to help and set about making PayPal Working Capital a reality.”
Small businesses – particularly those that have recently launched or have a less conventional business model – increasingly struggle to secure funding. According to the National Audit Office, the current funding gap for small businesses could be up to £39 billion.
PayPal have found that bank branch closures appear to be affecting small business access to funding. A third of all PayPal Working Capital loans have gone to small businesses in areas that have lost 50 or more bank branches in the last four years.
“It’s great that we are able to help address a real need for small businesses where the more traditional sources for finance are letting them down,” commented Mark Brant,
A Loan to Suit Your Business Life
A PayPal Working Capital loan is actually a cash advance of up to £100,000 linked directly to your PayPal account. Rather than using conventional criteria and credit checks to determine eligibility, PayPal uses your sales history and account performance. They approve, you accept – and just seconds later, the money is in your PayPal account.
The only charge is one upfront fee. Repayments are taken automatically and repaid based on an agreed percentage of the borrower’s PayPal sales, making leaner months less stressful.
Referring to the struggles small businesses go through to get funding – particularly if they are micro or online businesses – Mr Brant said:
“PayPal Working Capital is one of the ways we are redressing the balance.
“Small businesses are the lifeblood of our economy. Here’s to many more milestone moments in supporting their success.”