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PayPal business loans review

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

  • Best for poor-credit business owners with a PayPal business account.
  • Pick something else if you're looking for a low rate.
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Min. Amount$5,000
Max. Amount$500,000
Loan Term12 to 3.25 months
RequirementsPayPal business account, 9+ months in business, annual revenue of $42,000+, 550+ credit score, no active bankruptcies

This article was reviewed by Doug Noll, a member of the Finder Editorial Review Board and award-winning lawyer, mediator and author with over 40 years of experience in the legal field.

How much will this loan cost me?

PayPal business loans come with one fixed fee rather than interest. While we weren't able to confirm the fee when we reached out to customer service, LoanBuilder charges 6.49% to 19.31% of your loan amount, and is very similar to PayPal's business loan product. You can borrow between $5,000 and $500,000.

While PayPal's customer service team was unable to confirm terms, it likely ranges between the same 3.25 months to 12 months that comes with a LoanBuilder loan.

Depending on the loan term 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 fee, terms and loan amounts your business receives vary depending on factors like your revenue, credit score and time in business. If you make the 550 credit score and $42,000 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 $42,000 in annual revenue
  • At least nine months in business
  • 550 personal credit score or higher
  • Eligible industry
  • No active bankruptcies

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.

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

What other types of financing does PayPal offer?

Your business scan also apply for a PayPal Working Capital business loan. These loans give your business an advance on future PayPal sales from $1,000 to $300,000, which you repay plus a fixed fee with between 10% to 30% of your daily PayPal sales.

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

Pros and cons

PayPal business loans aren't right for every business. Here are the top benefits and the drawbacks to consider before applying.


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


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

See other business loan options

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

1 – 6 of 6

Name Product Filter Values Min. Amount Max. Amount APR Requirements

Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★

Lendio business loans
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.

OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★

OnDeck short-term loans
29.9% to 99.9%
625+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.

ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★

ROK Financial business loans
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.

Fundera business loans
Finder Rating: 4.9 / 5: ★★★★★

Fundera business loans
7% to 30%
$50,000+ of annual revenue, 620+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.

Biz2Credit business loans
Finder Rating: 4.7 / 5: ★★★★★

Biz2Credit business loans
Starting at 6.50%
6+ months in business; $100,000+ annual revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.

Fora Financial business loans
Finder Rating: 4.1 / 5: ★★★★★

Fora Financial business loans
12+ months in business, $15,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $750,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.

Compare up to 4 providers

Is PayPal a legit lender?

Yes, PayPal is a legitimate business loan provider, though technically it's not the 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.

PayPal reviews and complaints

BBB accredited Yes
BBB rating B
BBB customer reviews 1 out of 5 stars, based on 1,502 customer reviews
BBB customer complaints 13,406 customer complaints
Trustpilot Score 1.2 out of 5 stars, based on 13,474 customer reviews
Customer reviews verified as of 12 October 2020

PayPal gets overwhelmingly negative online reviews. While most reviews aren't specifically from business loan customers, many complain of poor customer service — especially since the start of the coronavirus outbreak. Some also report trouble accessing funds in their PayPal accounts.

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. If you have a PayPal business account, select Continue with PayPal account and sign in. Otherwise, hit Continue as guest.
  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, 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. 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.

How do repayments work with PayPal business loans?

PayPal deducts repayments each week from your PayPal business account. Log in to monitor your repayments and reach out to customer service if you think you're in danger of missing a repayment. If a repayment attempt bounces, PayPal charges a $20 fee.

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

Review by

Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.

Expert review

PayPal business loans offers fast, short-term financing to current PayPal business customers. Rather than charging interest, your business pays a flat fee to get this loan. After receiving the funds, PayPal deducts weekly repayments directly from your business account until the loan is paid off.

It’s essentially the same product as LoanBuilder, A PayPal Service with one key difference — funds are deposited directly into your PayPal business account rather than your business’s bank account. It also has looser requirements than LoanBuilder, like a lower minimum credit score cutoff and fewer restrictions on industries.

But both are equally expensive, with costs topping the equivalent of a 100% APR. If you have a credit score above 670, you might be able to find a less expensive option elsewhere.

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