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PayPal business loans
Min. Amount
$5,000
Max. Amount
$150,000
APR
12.5% to 132%

Our verdict

Short-term loans with potentially high fees for business account users of all credit types.

PayPal business loans offer fast, short-term financing to current PayPal business customers. You’ll receive funds as soon as the next business day, and PayPal deducts weekly repayments directly from your business account. It's essentially the same product as LoanBuilder, A PayPal Service.

While it performs a credit check, scores as low as 580 are considered — making it an option for poor credit business owners or those with limited credit history. However, repayments are the same amount every week, which can be difficult to keep up if your business experiences a downturn.

Rather than charging interest, your business pays a flat fee to get this loan. While we couldn’t confirm the fee amount, it could top the equivalent of a 100% APR. If you have good credit or high annual revenue, consider a less expensive option elsewhere.

Best for: Poor-credit business owners with a PayPal business account.

Pros

  • All credit types accepted
  • Low $42,000 annual revenue requirement
  • Funding as soon as the next business day

Cons

  • Not available to high-risk industries
  • Fees equivalent to over 100% APR
  • Weekly repayments

In this guide

  • Our verdict
  • Details
    • Product details
  • Your reviews
  • Ask a question

Details

Product details

Min. Amount $5,000
Max. Amount $150,000
Loan term 17 to 52 weeks
Min. Credit Score 580
APR 12.5% to 132%
Requirements PayPal business account, 9+ months in business, annual revenue of $33,300+

How much will this loan cost me?

PayPal business loans come with one fixed fee rather than interest. While we couldn’t confirm the fee when we reached out to customer service, LoanBuilder charges 6.49% to 19.31% of your loan amount and is essentially the same product as PayPal’s business loan product.

You can borrow between $5,000 and $100,000 as a first-time borrower or up to $150,000 for repeat borrowers. Repayment terms range from 17 to 52 weeks — or about four months to one year.

Depending on the loan term and how much you borrow, this can be equivalent to an APR from around 12.5% to around 132%.

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How it works

The fees, terms and loan amounts your business receives vary depending on factors like your revenue, credit score and time in business. If you barely make the 580 credit score and $33,300 annual revenue cutoffs, you’ll likely receive a fee on the higher end and qualify for a lower maximum loan amount.

What do I need to qualify?

You and your business must meet the following requirements to qualify for a PayPal business loan

  • PayPal business account
  • At least $33,300 in annual revenue
  • At least nine months in business

PayPal also performs a credit check for this loan type and requires a credit score of at least 580.

What information do I need to apply?

What you need to apply varies depending on your business. PayPal typically requires you to submit at least four months of business bank statements.

How do I apply?

You can apply online by following these steps.

  1. Go to the PayPal business loans website and choose Check eligibility.
  2. Select Continue and sign to your PayPal business account.
  3. Fill out the form with basic information about yourself and your business. Read the terms and conditions before choosing Continue.
  4. Follow the directions to complete forms with more details about yourself and your business and to verify your identity.
  5. Review the application before submitting it to PayPal.

What happens after I apply?

After you fill out the online form, you’ll receive an estimate of the range of fees, terms and loan amounts your business can qualify for. You can customize your loan to give your business weekly repayments that fit your budget.

While PayPal reviews your application, a representative might reach out to ask for additional documentation. Once you’re approved and sign the loan offer, PayPal transfers the funds to your business bank account, usually by the next business day.

What industries does PayPal work with?

PayPal works with over 550 industries. However, the following types of businesses are ineligible.

  • Business or professional associations
  • Businesses involved in gambling
  • Car, recreational vehicle and watercraft dealerships
  • Civic and social organizations
  • Collection agencies
  • Credit bureaus
  • Financial services
  • Firearms businesses
  • Foundations offering grants
  • Holding or management companies
  • Human rights organizations
  • Independent artists, including writers or performers
  • K-12 schools or junior colleges
  • Labor and political organizations
  • Law firms
  • Manufactured mobile home dealerships
  • Nonprofits
  • Organizations or companies in public administration
  • Religious organizations
  • Talent and public figure management agencies
  • Voluntary health organizations

How do repayments work with PayPal business loans?

PayPal deducts repayments each week from an external business checking account. Once approved for a business loan, PayPal asks for your banking information to deposit the loan and set up weekly repayments.

See other business loan options

Use this table to see how PayPal compares to other online lenders.

Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$5,000,000
Starting at 3%
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Lendzi
Finder Score: 4.7 / 5: ★★★★★
Lendzi
$5,000
$2,000,000
Starting from 3.9%
525+ credit score, one year in business, at least $50,000 annual revenue
Compare lending options and get funded fast.
Fundible
Finder Score: 4.9 / 5: ★★★★★
Fundible
$1,000
$10,000,000
Rates start at 1% per month
500+ FICO score, $200,000 annual revenue, 6 months in business, most recent business bank statements
Same day approval
Nav business loans
Finder Score: 4.8 / 5: ★★★★★
Nav business loans
$500
$5,000,000
Varies by lender
550+ credit score
Get connected with personalized matches from over 100 lending options. Plus, get the best rates with the help of dedicated funding managers.
BusinessLoans.com
Finder Score: 4.4 / 5: ★★★★★
BusinessLoans.com
$5,000
$3,000,000
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
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What other types of financing does PayPal offer?

Your business can also apply for a PayPal Working Capital business loan. These loans give your business an advance on future PayPal sales from $1,000 to $150,000 for new customers or up to $250,000 for repeat borrowers.

To qualify, you must have a PayPal Premier or Business account open for at least 3 months and make at least $15,000 in PayPal Business or $20,000 in PayPal Premier annual sales.

PayPal business loansPayPal working capital
Loan amount$5,000 – $100,000
(up to $150,000 for repeat borrowers)
$1,000 – $150,000
(up to $250,000 for repeat borrowers)
Time to receive fundsAs soon as the next business dayIn minutes
Eligibility requirements
  • Annual revenue of at least $33,300
  • Business is at least nine months old
  • A PayPal Business account is required
  • Have a PayPal Business or Premier account for at least 90 days
  • Processed at least $15,000 in PayPal sales in the last 12 months ($20,000 for Premier accounts)
  • No outstanding PayPal Working Capital loan
Credit checkRequires a credit check; 580 minimum credit scoreNo credit check
How to repayWeekly fixed payments automatically deducted from your bank accountRepaid as a percentage of your PayPal sales; minimum repayment every 90 days

PayPal reviews and complaints

BBB accredited Yes
BBB rating A
BBB customer reviews 1.14 out of 5 stars, based on 1,560 customer reviews
BBB customer complaints 30,715 customer complaints
Trustpilot Score 1.3 out of 5 stars, based on 27,346 customer reviews
Customer reviews verified as of 20 November 2023

PayPal gets overwhelmingly negative online reviews, but most aren’t specifically from business loan customers. The few that are frequently state that their PayPal account was suddenly closed or limited without explanation, affecting their ability to do business and complete transactions.

Is PayPal a legit lender?

Yes, PayPal is a legitimate business loan provider, though technically, it’s not a lender. Like many online loan providers, the loans are funded by a different financial institution. In the case of PayPal, its loans are funded by WebBank, which is a member of the FDIC — meaning it meets federal standards.

And as an online payment processor, PayPal takes precautions to make sure your transactions are protected, like encrypting its online forms. Its website follows industry standard protections to keep your and your business’s information safe from hackers.

Find out how PayPal compares to other lenders by reading our guide to business loans.

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