Giant online payments company, PayPal, has introduced Working Capital, a new loan product which promises eligible merchants a tailored grant loan within few minutes of request. Australia is the first country to receive the service. It will be introduced to a limited number of partners to begin with, before the final release in 2015.
The company's customer experience and solutions director, Kareem Al-Bassam, said the nation was chosen due to demand from small to medium sized businesses (SMBs) for wider choice of financing options.
SMBs who need the service must complete a four-step application process; eligibility can be checked by PayPal merchants which have held an account for at least a year through the provider's website. Those that qualify are then allow to select the amount of the loan (up to eight per cent of their yearly PayPal sales), and what percentage of each PayPal-facilitated transaction will be allocated to repay the grant.
Borrowers are expected to pay one competitive fee which is decided up front, and based on the amount borrowed. PayPal said there are no hidden charges, nor penalties for late payment or early settlement of the full loan.
The company's customer experience and solutions director, Kareem Al-Bassam, said the nation was chosen due to demand from small to medium sized businesses (SMBs) for wider choice of financing options.
SMBs who need the service must complete a four-step application process; eligibility can be checked by PayPal merchants which have held an account for at least a year through the provider's website. Those that qualify are then allow to select the amount of the loan (up to eight per cent of their yearly PayPal sales), and what percentage of each PayPal-facilitated transaction will be allocated to repay the grant.
Borrowers are expected to pay one competitive fee which is decided up front, and based on the amount borrowed. PayPal said there are no hidden charges, nor penalties for late payment or early settlement of the full loan.
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