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UK companies secure GBP 625 mln from PayPal

Wednesday 9 May 2018 | 01:25 PM CET

PayPal has revealed that more small businesses are turning to its small business finance product, PayPal Working Capital, to access flexible funding.

The amount of finance advanced in the UK has risen from GBP 400 million in June 2017 to a total of GBP 625 million. Over 30,000 UK businesses have now benefited from a share of the USD 5 billion (GBP 3.6 billion) that PayPal Working Capital has provided globally since 2014.

The new figures mark a 56% increase over the past 12 months in the total amount advanced, demonstrating the ongoing need for alternative financing that bridges the gap left by traditional funding providers. Bank branch closures in particular are hitting underserved communities across the country – but for small businesses, technology has provided a convenient alternative: 70% of PayPal Working Capital advances issued in 2017, all of which are made online, were outside traditional bank branch hours.

PayPal uses technology and its extensive data to bypass the lengthy application process of traditional business finance, and instead offers a digital alternative for PayPal’s small business customers. PayPal Working Capital provides businesses with a cash advance of up to GBP 100,000 on their future sales. Repayments are applied automatically as a fixed percentage of a business’ PayPal takings, which gives them flexibility to pay back only when they are making sales. There is one fixed, upfront fee and no late or early payment charges.

More: Link
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