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Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

8 thoughts on “Warning for eBay Sellers with PayPal Loans”

  1. HA HA Ebay would be the last place I would ever borrow from. They lie so bad they can’t be trusted for anything. My bank is more than willing to loan me any money I might need. Thanks but no thanks Ebay.

  2. Those loans are BS. Go to your bank. The loans paypal, and probably ebay end up being anywhere from 12-22%. Go to your bank you will get %7, and on top if it with the bank if you pay it off quicker it costs you less. PP and ebay you pay a flat fee, so there is no Int. rate (you pay no matter weather you pay fast or slow).

    1. i borrowed $11,000 and paid a $886 origination fee which is about 8% interest.
      -no credit check [if my credit was jacked-up, i’d still qualify based on my PP sales performance]
      -no hard inquiry on my credit file, nor does it show up at all
      -online app took 5-minutes
      -my paypal account was funded on a Saturday night at 10PM (can you go to a bank at 10pm and get an instant loan)
      -my paypal debit card gives me INSTANT access to my funds immediately
      -1.5% cash-back on all purchases for new inventory, so, that basically reduces the “interest rate”
      the finance charge will NOT increase if i take longer to pay it back
      -i make sales everyday, so, im making a repayment everyday

      –30% per sale repayment fee

      i can only assume that you’ve never actually had a PPWC loan before

    2. My experience with PPWC is similar to @eyeflipdaily. Very easy to get the funds, not too painful to pay back, decent interest rate. Just skipping all the income / sales history / tax returns / references / past loan history stuff was worth it. I use the funds to buy large collections when they become available, and the profits from that pay the interest several times over. Works great to me. Or used to. We’ll see how that sorts out going forward into the MP age.

  3. well, im glad i also sell on: Grailed, StockX, GOAT, Bonanza, & Kixify … all Paypal accepted marketplaces … so, im good

  4. Banks are a pain in the ass when it comes to getting loans if you’re an online seller !, they want to nit pick every little detail of every word of every sentence, in search of the slightest thing they can find to reject you for !, Plus, you can walk in with 200k Worth of sales reports and Paypal statements, and its meaningless to them, the ONLY thing they care about is “where’s your tax returns ?”, So if you filed an extension or haven’t gotten them done yet, tough crap for you, No money, have a nice day !. Paypal working capital loans are WAY easier, or atleast they WERE before they got dropped by Ebay, we’ll have to see how things materialize in the near future, But I’ve borrowed about 100K in working capital loans over the last 10 years from them and never had any issues, I sell more than enough stuff monthly to cover the payments, and its MUCH easier and effortless to just set them on auto-deduction so that it takes a small percentage of every ebay sale until its paid off, I can have the average 10k Loan paid off in 3 months or less, with it only taking 10% of each item sold, So now that Ebay decided to screw things up and drop them, how are they supposed to guarantee you these big loans of 30K or more without knowing how much you’ve sold in the last 12 months, and without being able to withdraw from each sale ?. I highly doubt that Ebay is gonna step-up and start offering to give us 30k at a time, Nor would we take it without checking every word of the contract beforehand, the way that ebay has been stiffing sellers the last 2 years, with this huge emphasis of kissing the asses of buyers and telling sellers to shut up, sit down and obey, it would be only a matter of time before they would use those loans as leverage to start intimidating sellers into doing what they want “or else”. Plus as far as the fees are concerned with the former paypal loans, I borrowed 33K back in 2016 and the payback amount was 36k, it was a total of 3k for the fee, which even if it is a little higher than a bank might be, its worth it to avoid the aggravation, and not have to go out of your way to spill your whole life story and a pound of documents for the people at the bank, Just log on, let paypal scan your gross sales for the last 12 months, and then see what the system offers, it will say your guaranteed up to X-Amount, you choose the amount you want, agree to the terms and the money gets put in your account within minutes or less, and there’s no worrying about having to pay a minimum monthly payment like you would with a bank, if you sell much less than usual one month, no big deal, and if you sell much more than usual, then great, you paid a little more towards your loan than you did last month, and you had it to pay, so it wasn’t a big deal.

  5. I have received 157K in PPWC loans since 2014..without PPWC I would NOT be in any sustainable business…. my largest loan was 44k which I am currently paying off…my steady eBay sales have always enabled me to pay 4 to 5 times the minimum 90 day requirement. I am freaking out now that I have been forced to sign up for MP( greedy move by eBay)…PPWC tells me now based on the goings this will be the last loan I am going to get from them since WebBank will have no access to data to guarantee loans.I am weighing options to move on to other marketplaces but I am not familiar with the ones @eyeflipdaily mentioned above… I may have to investigate otherwise I am dead in the water… Getting ready to say goodbye to eBay …I pay them an average $1000+ every month in fees..(plus who knows what else they steal from me). Sincerely if someone figures out a company that can lend to eBay sellers based on sales I would glad appreciate. I sell consumer electronics and I can’t imagine starting afresh selling different commodities right now. Thanks for sharing, in summary, there has been no lender that has had my back like PPWC..and for all the 157k I have received from them…I only spoke to PPWC once, on phone when they volunteered to give me my first $1000 LOAN!! Afterwards I just logged into my account years down the line and renewed my loans after paying off…PERIOD. Now that is impressive! My local bank will laugh into my face if I went to borrow $500…

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