Short-term business loans with PayPal Working Capital are some of the fastest loans for PayPal-based e-commerce businesses. But it caps its no credit check loans at $200,000 for first-time borrowers, and it’s only for businesses that use PayPal to process their sales and have a PayPal business account history. If that doesn’t fit your needs, consider these alternatives instead.
Lendio is a business loan marketplace connecting over 75 lenders to business owners. Lendio's partners offer a much wider range of loans and financing options than PayPal Working Capital, including SBA and term loans, cash advances, equipment financing, flexible lines of credit and more.
Just fill out a single online form with your information, and it will connect you with multiple lenders. Depending on the loan type, some lenders may even work with credit scores as low as 580. But be prepared to receive a large number of marketing calls and emails afterward.
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
580
Lendio is a business loan marketplace connecting over 75 lenders to business owners. Lendio's partners offer a much wider range of loans and financing options than PayPal Working Capital, including SBA and term loans, cash advances, equipment financing, flexible lines of credit and more.
Just fill out a single online form with your information, and it will connect you with multiple lenders. Depending on the loan type, some lenders may even work with credit scores as low as 580. But be prepared to receive a large number of marketing calls and emails afterward.
Pros
Network of 75+ lenders
Wide range of financing options
Options for poor credit
Cons
Not a direct lender
Fees and rates vary by lender
Marketing communications may continue
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
580
Loan term
3 months to 25 years
Requirements
Operate business in US for 6 months or more, have a business bank account, minimum 580 personal credit score, at least $8,000 in monthly revenue.
National Funding offers new and used equipment financing and leasing up to $150,000 through its network of lending partners. It funds up to 100% of the equipment cost with no down payment required, which means you can save your cash for other purposes.
It also guarantees you won't find a lower monthly lease payment elsewhere, or it pays $1,000 toward the equipment lease. National Funding advertises fast approvals and funding in as soon as 24 hours, with early payment discounts and excellent customer reviews.
Loan amount
$5,000 – $500,000
APR
Undisclosed
Min. Credit Score
600
National Funding offers new and used equipment financing and leasing up to $150,000 through its network of lending partners. It funds up to 100% of the equipment cost with no down payment required, which means you can save your cash for other purposes.
It also guarantees you won't find a lower monthly lease payment elsewhere, or it pays $1,000 toward the equipment lease. National Funding advertises fast approvals and funding in as soon as 24 hours, with early payment discounts and excellent customer reviews.
Pros
Quick turnaround funding
No down payment required
Highly rated by customers on Trustpilot
Cons
Low maximum loan amount
Rates not advertised
Loan amount
$5,000 – $500,000
APR
Undisclosed
Min. Credit Score
600
Loan term
24 to 60 months
Requirements
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
FundThrough offers no-doc invoice factoring with funding as fast as the next business day. It has no time in business requirements to qualify, and there is no impact on your credit. It's also one of the few factoring firms that advances up to 100% of your invoices.
You submit your invoices by uploading them into your FundThrough account or pulling them in from QuickBooks or OpenInvoice. But you need to invoice B2B or government agencies and have outstanding invoices of at least $100,000 in accounts receivables or invoices to one customer. Fees range from 2.75% to 8.25% of your invoices' value.
Loan amount
$500 – $10,000,000
APR
Not applicable
Min. Credit Score
500
FundThrough offers no-doc invoice factoring with funding as fast as the next business day. It has no time in business requirements to qualify, and there is no impact on your credit. It's also one of the few factoring firms that advances up to 100% of your invoices.
You submit your invoices by uploading them into your FundThrough account or pulling them in from QuickBooks or OpenInvoice. But you need to invoice B2B or government agencies and have outstanding invoices of at least $100,000 in accounts receivables or invoices to one customer. Fees range from 2.75% to 8.25% of your invoices' value.
Pros
Next-day funding possible
Advances up to 100% of invoices
No time in business requirements
Cons
More expensive than most types of business funding
Cost depends on how fast your customers pay
Doesn't integrate with all accounting systems
Loan amount
$500 – $10,000,000
APR
Not applicable
Min. Credit Score
500
Loan term
1 to 3 months
Requirements
At least $100k in accounts receivable to one customer, invoice business-to-business (B2B) or government agencies, invoices are for completed work, no construction or real estate, no explicit liens on receivables
Backd offers lines of credit up to $750,000 to businesses that have been in business for at least one year with at least $100,000 in annual revenue. This limit is much higher than PayPal's maximum limit of $300,000 for repeat borrowers.
If you're approved with Backd, you can get funds as soon as one to two business days. With its lines of credit, you can pay back each draw with fixed monthly or weekly payments over 6 or 16 months. After you repay, the funds are available for you to draw from again.
Loan amount
$10,000 – $2,000,000
APR
Competitive
Min. Credit Score
600
Backd offers lines of credit up to $750,000 to businesses that have been in business for at least one year with at least $100,000 in annual revenue. This limit is much higher than PayPal's maximum limit of $300,000 for repeat borrowers.
If you're approved with Backd, you can get funds as soon as one to two business days. With its lines of credit, you can pay back each draw with fixed monthly or weekly payments over 6 or 16 months. After you repay, the funds are available for you to draw from again.
Pros
High unsecured loan amounts
Low 600 credit score requirement
Only 1 year in business required
Cons
Requires $300,000 annual revenue
Doesn't disclose rates or fees
Short loan terms
Loan amount
$10,000 – $2,000,000
APR
Competitive
Min. Credit Score
600
Loan term
6 to 16 months
Requirements
1+ years in business, $100K+ annual revenue, 600+ FICO, business bank account, US based business
Unlike PayPal, OnDeck offers two types of loans: term loans and lines of credit (LOC). Depending on the state, its term loans and lines of credit can be funded as soon as the same day. But rates can run high, with an average term loan rate of 56.1% APR and an average rate of 55.9% APR for LOCs.
To qualify, your business must have been operating for at least one year with $100,000 in annual revenue. But you only need a minimum credit score of 625 to qualify, and there are no prepayment penalties on its term loans or draw fees on its line of credit (LOC), which can help you save.
Loan amount
$5,000 – $250,000
APR
Average is 55.9% to 56.1%.
Min. Credit Score
625
Unlike PayPal, OnDeck offers two types of loans: term loans and lines of credit (LOC). Depending on the state, its term loans and lines of credit can be funded as soon as the same day. But rates can run high, with an average term loan rate of 56.1% APR and an average rate of 55.9% APR for LOCs.
To qualify, your business must have been operating for at least one year with $100,000 in annual revenue. But you only need a minimum credit score of 625 to qualify, and there are no prepayment penalties on its term loans or draw fees on its line of credit (LOC), which can help you save.
Pros
Low-doc application
Same-day funding possible
No prepayment penalties or draw fees
Cons
Potentially high APRs
Weekly repayments on LOC
Not available to all industries
Loan amount
$5,000 – $250,000
APR
Average is 55.9% to 56.1%.
Min. Credit Score
625
Loan term
3 to 24 months
Requirements
Companies in business at least 1 year, $100,000+ in gross annual revenue, majority owner with a 625+ personal credit score, active business checking account
SBA term loans provide longer-term funding than PayPal, with repayment terms of up to 25 years and competitive rates. With SmartBiz, you can speed up the SBA application process by filling out a single form and getting matched with multiple banks and online lenders that offer SBA loans.
SBA loans through SmartBiz typically take just one month for funding, instead of the regular two- to three-month waiting period for SBA loans. Prequalification takes a few minutes, but the process isn't free: SmartBiz lending partners may charge a packaging fee of up to $2,500, plus closing costs.
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 2.75% to 4.75%
Min. Credit Score
650
SBA term loans provide longer-term funding than PayPal, with repayment terms of up to 25 years and competitive rates. With SmartBiz, you can speed up the SBA application process by filling out a single form and getting matched with multiple banks and online lenders that offer SBA loans.
SBA loans through SmartBiz typically take just one month for funding, instead of the regular two- to three-month waiting period for SBA loans. Prequalification takes a few minutes, but the process isn't free: SmartBiz lending partners may charge a packaging fee of up to $2,500, plus closing costs.
Pros
Help with SBA loan applications
Online prequalification available
Good customer reviews
Cons
Up to 4% in fees
Minimum loan amount is $50,000
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 2.75% to 4.75%
Min. Credit Score
650
Loan term
10 years
Requirements
650+ credit score, 2+ years in business, $50,000+ in annual revenue, no bankruptcies or foreclosures in past 3 years
Offering advances up to $600,000 and with a factor rate of 1.11, Credibly is one of the less expensive options out there for merchant cash advances. If you're approved, you can get funds as soon as the same day you apply and repay the advance from your future sales.
However, it has a $15,000 monthly minimum revenue requirement, which is much higher than PayPal's $15,000 annual requirement – but you're not restricted to advances based only on PayPal sales. Credibly comes highly rated by past customers and only requires a 500 credit score to qualify.
Loan amount
$5,000 – $600,000
APR
Factor rates start at 1.11
Min. Credit Score
500
Offering advances up to $600,000 and with a factor rate of 1.11, Credibly is one of the less expensive options out there for merchant cash advances. If you're approved, you can get funds as soon as the same day you apply and repay the advance from your future sales.
However, it has a $15,000 monthly minimum revenue requirement, which is much higher than PayPal's $15,000 annual requirement – but you're not restricted to advances based only on PayPal sales. Credibly comes highly rated by past customers and only requires a 500 credit score to qualify.
Pros
Same-day funding available
Requires only 6 months in business
Low credit score requirement
Cons
Doesn't disclose remittance percentage
Best factor rates require good credit
May require daily repayments
Loan amount
$5,000 – $600,000
APR
Factor rates start at 1.11
Min. Credit Score
500
Loan term
3 to 24 months
Requirements
6+ months in business, $15K+ in monthly deposits, 500+ credit score, Need business bank account
Startup financing can be harder to find, but with Finance Factory, you can search multiple startup funding options through a single form. Entrepreneurs can find a range of loans and financing options between $5,000 and $350,000 that can be used to fund a new business.
While it's not a direct lender, it's transparent about its terms and rates, with APRs ranging between 0% (for up to 21 months) and 15%. But you may need good to excellent credit to qualify with Finance Factory, and funding can take a few weeks.
Loan amount
$5,000 – $500,000
APR
0% to 15%
Min. Credit Score
700
Startup financing can be harder to find, but with Finance Factory, you can search multiple startup funding options through a single form. Entrepreneurs can find a range of loans and financing options between $5,000 and $350,000 that can be used to fund a new business.
While it's not a direct lender, it's transparent about its terms and rates, with APRs ranging between 0% (for up to 21 months) and 15%. But you may need good to excellent credit to qualify with Finance Factory, and funding can take a few weeks.
Pros
Multiple options for startups
Transparent with rates
Award-winning support team
Cons
Not a direct lender
Few options for fair or bad credit
Funding may take longer than other lenders
Loan amount
$5,000 – $500,000
APR
0% to 15%
Min. Credit Score
700
Loan term
Up to 10 years
Requirements
600 to 800 credit score, no required years in business or monthly cashflow, though $1,000 to $5,000 monthly is preferred
Loan amount
$5,000 – $500,000
APR
0% to 15%
Min. Credit Score
700
How does PayPal Working Capital compare?
PayPal Working Capital is a business loan based on your PayPal business account history that you repay with a share of your PayPal sales. Eligibility requirements are much lower than with other types of loans. There’s no credit check, and you only need $15,000 in annual PayPal sales to qualify — or $20,000 with a Premier account.
Loan amounts are flexible, and can be as little as $1,000 or as high as $300,000 for repeat borrowers. Repayments come from your sales, and you choose how much of a percentage PayPal deducts. But rates can run high, and it’s only for PayPal customers, making it more limited than other types of business loans. Compare the best working capital loans to find the deal that fits your needs.
Pros
No credit check
Approval in minutes
Low minimum loan amount
Cons
Fees not disclosed
For PayPal business customers only
Non-PayPal revenue doesn’t count
Compare business loans
Enter your time in business, annual revenue and credit score ranges to unlock lenders you may qualify with. Then select Go to site to get started on your application. Alternatively, you can visit our review page by selecting More info.
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How we picked these
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Does PayPal Working Capital affect my credit score?
No. Your eligibility is based on your PayPal sales history, not your personal or business credit scores.
Why am I not eligible for PayPal Working Capital?
If you haven’t had a PayPal Business or Premier account for at least 90 days and/or you don’t have at least $15,000 to $20,000 in annual sales entirely through PayPal, your loan application may be denied.
Can you have two PayPal Working Capital loans?
You can only have one PayPal loan at a time. After you pay it back, though, you can apply for a new loan, which is common.
Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio
Kat's expertise
Kat has written 157 Finder guides across topics including:
BHG Financial is a nonbank lender that offers investment, business debt consolidation, startup and healthcare-related loans to professionals. Borrow up to $500K with minimal requirements.
Take advantage of this progressive form of flexible funding built for retailers.
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