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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


Max. Amount


Min. Amount$5,000
Max. Amount$500,000
Loan term12 to 3.25 months
Min. Credit Score550
RequirementsPayPal business account, 9+ months in business, annual revenue of $42,000+, 550+ credit score, no active bankruptcies

Review by

Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.

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.

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 3 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 3%
Operate business in US or Canada for 6 months or more, have a business bank account, 560 personal credit score, at least $8,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
Not rated yet
Starting from 2%
550+ credit score, at least one year in business, $240,000+ annual revenue
Apply within minutes without impacting your credit score.
Finder Rating: 4.38 / 5: ★★★★★
Varies by loan type and lender
Must have been in business between 1–2 years, have a minimum revenue of $75,000–$250,000 and have a minimum credit score of 500–650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
National Business Capital business loans
Finder Rating: 4.3 / 5: ★★★★★
National Business Capital business loans
1+ Year in Business, $500,000 in Annual Revenue, US citizen or permanent resident
Find a loan to match your business needs with an advisor to help you navigate through the process.
OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★
OnDeck short-term loans
29.9% to 65.9%
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
Receive flexible financing at competitive fixed rates from this A+ rated business lender.
Finder Rating: 4.6 / 5: ★★★★★
Starting at 1%
600+ personal credit score, 1+ years time in business, $140,000+ minimum annual revenue, active business checking account required
Prequalify with this lending marketplace using an easy application process. Plus, work with real loan experts to make the best decisions on loan programs for ERC, SBA, e-commerce, cannabis and other loan categories.

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 A
BBB customer reviews 1 out of 5 stars, based on 1,502 customer reviews
BBB customer complaints 33,689 customer complaints
Trustpilot Score 1.3 out of 5 stars, based on 25,263 customer reviews
Customer reviews verified as of 05 May 2023

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.

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