Payments provider PayPal will start offering cash advances to growing businesses in the UK from the autumn, it announced today.
Payments provider PayPal will start offering cash advances to growing businesses in the UK from the autumn, it announced today.
Payments provider PayPal will start offering cash advances to growing businesses in the UK from the autumn, it announced today.
The business, owned by eBay, will offer merchant cash advances against future sales. It will target eBay sellers but will be open to all businesses.
PayPal said it would offer a solution to the UK’s “real need” for new funding options. Recent reports suggest that high street banks alone are not meeting businesses’ credit requirements.
PayPal Working Capital will give quick loan decisions “in minutes” and customers can “pay when they get paid” instead of on set dates.
As an advance against future sales, and not technically alone, there is also no credit check in the application process, it said.
Cameron McLean, managing director of PayPal UK, said: “Around a third of SMEs rely on retained earnings or the owner’s own finances rather than bank or equity funding. This means that many find it very difficult to finance their present needs or future growth.
“PayPal is well placed to make a difference. We’ve been helping businesses thrive online for almost 15 years. And our close relationship with our business customers means we can approve a cash advance and provide the money in minutes.”
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