At the same time PayPal was heralding a milestone in lending to small businesses, it was drumming up more business through an email marketing campaign. In a blog post on Wednesday, it announced, “More than five years since providing access to our first loan, today, we’re proud to announce that we have provided more than $10 billion in funding through more than 650,000 loans to more than 225,000 small businesses around the world.”
The company was also sending out invitations on Wednesday to businesses to urge them to consider a PayPal Business Loan. “Help turn your business dreams into a reality with a PayPal Business Loan. Apply, and if approved, you could have from $5,000 to $500,000** in your PayPal Business account as fast as the next business day.”
The email explained the lender for the PayPal Business Loan is WebBank, and qualified the invitation: “Subject to lender approval, the PayPal Business Loan is offered from $5,000 to $500,000 and with durations from 13 to 52 weeks depending on loan amount.”
In describing the benefits of the PayPal Business Loan, the email cited the following:
- Fast access to cash;
- Clear and competitive pricing;
- Tailored terms;
- Hassle-free repayment.
PayPal stated in the blog post that typically, small businesses only need a few thousand dollars to manage immediate concerns – but said they often need it immediately. “PayPal business financing programs can provide funding from $1,000 – $500,000 for small businesses looking for both quick decision-making and immediate usage as an application decision that usually occurs within minutes or hours which, if approved, allows the business to start using the funds almost immediately.”
In addition to the PayPal Business Loan, PayPal also offers funding through PayPal Working Capital, which we had noted in this article from November.
PayPal didn’t reveal what percentage of borrowers grew after receiving the funds, but it did ask those borrowers the top uses of the money.
For PayPal Working Capital borrowers who grew, the top uses were as follows: “58% said they purchased inventory, 30% said they used it to purchase equipment, 28% said they invested in marketing, and 23% said they used the money to help manage cashflow.”
For PayPal Business Loans borrowers who grew, the top uses of the funds were as follows: to “help manage cash-flow (44%), purchase inventory (37%) and invest in marketing (31%).”
SOURCE: PayPal blog post