7 best business loans like PayPal Working Capital | finder.com
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7 best business loans like PayPal Working Capital

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The best alternative providers to PayPal Working Capital for business loans.

PayPal Working Capital is one of the fastest short-term business loans out there for e-commerce businesses. But it caps loans at 30% of your business’s annual PayPal sales or no more than $97,000 for first-time borrowers. Here are several top business loan providers that could offer financing that better suits your needs if PayPal Working Capital isn’t for you.

Pros

  • Get approved in seconds
  • No credit check
  • Time in business doesn’t matter
  • No late or maintenance fees
  • No minimum loan amount

Cons

  • At least $15,000 a year in PayPal sales required
  • Non-PayPal revenue doesn’t count towards qualifications
  • Repayment with each sale
  • Can’t save by repaying loan early because of fee structure
  • First-time loans capped at $97,000

Not sure PayPal Working Capital is the right short-term business loan option? Check out these other providers that might be able to help your business even more.


Click here to see PayPal Working Capital


loanbuilder logo

1. LoanBuilder, A PayPal Service

LoanBuilder is a much more hands-on experience than PayPal Working Capital. Each borrower gets a dedicated representative that helps them navigate repayment and acts as a point of contact. It also allows borrowers to adjust their loan term to increase or decrease weekly repayments.

Like PayPal Working Capital, LoanBuilder charges a flat fee instead of interest, depending on factors like your personal credit and how much you borrow. This means that you can’t save on your loan by paying it off early. And since it’s a short-term loan, you only have 3 to 12 months to pay it back. And while your business might not have funds deducted from each sale, it will be on the hook for weekly repayments, regardless of revenue.

To qualify, you’ll need to have a personal credit score of at least 600, have been in business for at least one year and make at least $100,000 annually. LoanBuilder isn’t just for businesses with a PayPal account.

Pros

  • Don’t need a PayPal account
  • Dedicated customer service point of contact
  • Funds in as little as one day
  • Loan amounts up to $500,000
  • No origination, application or stacking fees

Cons

  • Weekly repayments
  • Credit and business requirements
  • Requires personal guarantee
  • Can’t save by repaying loan early because of fee structure

ondeck logo

2. OnDeck

With OnDeck, how much you can qualify to borrow isn’t tied to your sales through just one payment system — it looks at your total cash flow. This differs from PayPal Working Capital’s approach of mainly evaluating business revenue through PayPal sales. It also offers a relatively wide range of terms from 3 to 36 months and higher loan amounts from $5,000 to $500,000.

Unlike PayPal Working Capital, OnDeck does a credit check, any score over 500 could be acceptable. It also requires your business to be around for at least one year and make $100,000 annually to qualify.

It can be more expensive for first-time borrowers too. The APR for the line of credit includes an origination fee that ranges from 2.5% to 4% for first-time borrowers. It also comes with weekly or even daily repayments and front-loads interest repayments so that paying back your loan early won’t save you much.

Pros

  • Term loans and lines of credit
  • High customer ratings
  • Loan amounts up to $500,000

Cons

  • Daily or weekly repayments
  • Potentially high rates
  • Time in business matters
  • Origination fee

fora financial logo

3. Fora Financial

Fora Financial offers two options to small businesses: Merchant cash advances and short-term loans. Unlike PayPal Working Capital, Fora Financial is one of the few short-term lenders that actually rewards early repayment by not charging a fee and even offers a discount of up to 10 cents on the dollar for paying off the loan before its due.

Fora Financial is startup friendly, approving businesses that are as young as six months old. It also has lower monthly revenue requirements than PayPal Working Capital, requiring borrowers to bring in just $12,000 a month. Its merchant cash advances aren’t limited to one payment system, opening up this option to businesses that have stronger sales elsewhere. Loan amounts run higher, ranging from $5,000 to $500,000.

However, it can be expensive. Its term loans come with a 2% to 4% origination fee and its merchant cash advances come with a factor rate of 1.1 to 1.3 times the amount you borrow. Getting your funds can take three days, much longer than PayPal Working Capital’s near-instant funding. And its loan terms only go up to 15 months, which is relatively short.

Pros

  • Merchant cash advances and term loans
  • Discount for prepayment
  • Startups welcome
  • Lower monthly revenue requirements
  • Loan amounts up to $500,000

Cons

  • Takes at least 72 hours to get funds
  • Short loan terms
  • Can potentially be expensive
  • Origination fee


4. Kabbage

Kabbage gives your business access to a wider range of funds, starting at $500 and going up to $250,000. Each time your business draws from its credit line, it turns into a term loan that it has 6 or 12 months to pay back. And while Kabbage does run a credit check, your business only needs to be around for one year and make either $50,000 annually or $4,200 monthly to meet its minimum qualification requirements. This opens its financing up to lower-revenue businesses and fair-credit business owners.

Like PayPal Working Capital, Kabbage’s loans don’t come with interest, just a fee. With Kabbage, the fee is a percentage of the amount you borrow and comes with a structure that makes it near impossible to save on your loan by paying it off early. It also takes slightly longer getting funds from Kabbage than through PayPal Working Capital, with a turnaround time of about one business day.

Pros

  • Larger amount of funds available
  • No credit requirement
  • Monthly repayments
  • Business debit card for access to your credit line
  • Lower monthly revenue requirements

Cons

  • Can’t save by repaying loan early because of fee structure
  • Not as fast as PayPal Working Capital

national business capital logo

5. National Business Capital

Unlike PayPal Working Capital, this lender and online marketplace may not fund your business loan directly, but it can help you save significant time comparing and applying to multiple lenders. It claims to match 90% of its applicants with a financing option they might qualify for.

This marketplace could be particularly useful if you’re not sure what all of your options are. It works with a wide range of lenders that offer small business loans, accounts receivable financing and merchant cash advances. While it might take a bit more time than PayPal Working Capital, it can open your business up to other options — especially if it needs continuous funding. It can also give your business access to much larger amounts of cash from $10,000 to $5,000,000.

PayPal Working Capital’s minimal requirements are difficult to beat. National Business Capital’s network of lenders generally consider things like your overall annual revenue — which must be at least $180,000 — and how long you’ve been in businesses, with a minimum of six months. And while it does provide startup financing, business owners must have a credit score of at least 680 to qualify. It also can take days to get your funds, rather than minutes, which could cost as much as 30 cents on the dollar.

Pros

  • Compare multiple lenders at once
  • Wider range of loan amounts, types and terms

Cons

  • 680 credit score required for startup funding
  • Potentially expensive
  • Can take days to get your funds
  • Can’t see what amounts and terms you might qualify for without applying
  • Calls from lenders
  • Less control over who gets your information

fundingcirle logo

6. Funding Circle

Funding Circle offers loan amounts that PayPal can’t with its relatively large range from $25,000 to $500,000 at competitive rates ranging from 4.99%–26.99%. Businesses can repay their loans in a wide range of terms, from six months to five years.

This peer-to-peer platform can connect your business to funding through investors. However, its turnaround time of at least five days makes it one of the the slower options on this list.

Its high minimum also means it’s less helpful than PayPal Working Capital to businesses looking for small-dollar, short-term funding. Its loans come with origination fees from 0.99% to 6.99%, which are deducted from the loan amount. Some customers complain that they’ve gotten robocalls from Funding Circle after applying for a loan.

Pros

  • Loans up to $500,000
  • Competitive rates
  • Wide range of loan terms
  • No minimum annual revenue required
  • No prepayment penalties

Cons

  • High minimum loan amount of $25,000
  • Less control over who gets your information
  • Must be in business for at least two years

excel capital management logo

7. Excel Capital Management

Excel Capital Management is both a direct lender and a marketplace that can connect you with other sources of financing if you don’t qualify for a competitive loan with it. It offers nine different types of loans including split funding — similar to a PayPal Working Capital loan, except it draws from each of your business’s debit or credit card sales.

This lender could be helpful to businesses that aren’t sure what type of financing they need and aren’t in as much of a rush. To qualify for split funding, you must have at least $7,500 in monthly credit card sales and at least $10,000 in total monthly sales. There are no minimum or maximum amounts for split funding, no hard credit requirements and you only need to be in business for at least two months. A set percentage is taken out of each credit card sale to pay back the amount.

Getting your money can take a little longer than with PayPal Working Capital, however. Its turnaround time is at least 48 hours. It also generally requires businesses to be around for at least one year to qualify for other types of loans. On top of this, you can’t choose what kind of loan you want to apply for, so you might not get matched with the type of financing you were hoping for.

Pros

  • Compare multiple lenders at once
  • Nine types of loans available
  • No strict credit requirements for split funding
  • Split funding has no hard minimum or maximum lending amounts

Cons

  • Longer turnaround time for funds
  • Can’t apply by loan type
  • For split funding, repayment with each credit card sale
  • Calls from lenders
  • Less control over who gets your information

Compare more business loan providers

Rates last updated September 21st, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$500
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.

Compare up to 4 providers

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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