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PayPal business loans: 2023 review

2023-06-05 18:25:56
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At a glance

Overall Score 4.2
Overview PayPal was founded as a digital payment processing platform in 1998. In 2013, PayPal launched its first business loan product, working capital loans. It also now offers fixed-term business loans.
Loan amount: $1,000 to $250,000
APR from: N/A; fee instead
Term lengths: 17 to 52 weeks
Minimum credit score: None

Who PayPal is best for

PayPal is best for small businesses who have low annual revenue figures and an active PayPal business account. It’s also a good choice for business owners who may have bad credit or a limited credit history. The working capital loan doesn’t require a credit check, while the business loan’s minimum credit score is only 580.

Who PayPal may not be best for

PayPal is not a good choice for businesses that need a large amount of funding. First-time borrowers are limited to $100,000 for business loans and $150,000 for working capital loans. Loan amounts increase for repeat borrowers — up to $150,000 for business loans and $250,000 for working capital loans.

Additionally, though PayPal's website doesn't disclose its total loan fee percentages, it's possible that well-established businesses could find lower borrowing costs with a traditional lender.

PayPal pros and cons


  • Checkmark

    Fast funding process

  • Checkmark

    Low revenue threshold

  • Checkmark

    Low minimum loan amount


  • Close X

    Not available nationwide

  • Close X

    Fees not fully disclosed in advance

  • Close X

    PayPal business account required

Business loan types offered

Business loans

PayPal requires a credit score of at least 580 and at least nine months in business for its business loans. You’ll also need a PayPal business account. If approved, funds will be deposited into your PayPal business account as soon as the next business day. Payments are automatically deducted weekly from your bank account. In place of an interest rate, companies are charged a fixed fee — though you must apply to learn the amount. 

In addition to the fixed fee, PayPal charges a $20 fee for returned payments. As with many small business loans, you must provide a personal guarantee.

Working capital loans

With PayPal’s working capital loan, you receive a lump sum, funded in minutes. A fixed fee set after you apply replaces the traditional interest rate. You then repay both with a percentage of each sale processed through PayPal. While there’s no set term, these payments must meet a minimum threshold every 90 days. 

Approval for PayPal working capital loans is based on your company’s PayPal business account history — there’s no credit check. Your PayPal business account must be at least 90 days old. You must process at least $20,000 in annual PayPal sales if you have a PayPal Premier account. For business accounts, the sales requirement drops to $15,000.

Do you qualify? 

Minimum requirements differ between the two loans. 

  • Credit score requirement: No requirement for working capital loans; starts at 580 for business loans
  • Revenue requirement: $15,000 in PayPal sales for working capital loans; $33,300 for business loans
  • Personal guarantee: Not required for working capital loans; required for business loans

Additionally, you’ll have to live in an area PayPal serves. Working capital loans aren’t available in North Dakota, South Dakota, Virginia, American Samoa, Guam, Puerto Rico, the Virgin Islands or the Northern Mariana Islands. Business loans aren’t available in North Dakota or South Dakota.


What we like and what we don’t like

A PayPal loan is geared to small businesses with low-volume sales and startup companies that may have difficulties securing a loan at a traditional bank.

What we like

  • Fast funding process: For PayPal working capital loans, funds can be in your account within minutes, while for business loans approved by 5 p.m. ET, funds can be available as soon as the next business day.
  • Low revenue threshold: For working capital loans, the minimum revenue requirement starts at $15,000 in PayPal sales, while for business loans, the company only needs $33,300 in annual revenue. 
  • Low minimum loan amount: Businesses can borrow as little as $1,000.

What we don’t like

  • Not available nationwide: Working capital loans are not available in North Dakota, South Dakota and Virginia. Business loans are unavailable in North and South Dakota.
  • Fees not disclosed: The amount of the fixed-rate fee is not disclosed until you check your eligibility or apply, making it difficult to compare with other lenders.
  • PayPal business account required: Not only must you have a PayPal business account, but for a working capital loan, you must make sales through that account.

How to apply for a loan with PayPal 

For a business loan, you start by logging in with your PayPal account to check your eligibility. For a working capital loan, PayPal has an online application process that should take only five to 10 minutes. PayPal states most applicants won't need to provide any documents, though PayPal notes some business loan applications may require some documentation.

Questions? Call 877-981-2128 between 8 a.m. and 8 p.m. ET Monday through Friday and 11 a.m. to 3 p.m. on Saturday.

PayPal FAQs

How Bankrate rates PayPal

Overall Score 4.2
Accessibility 4.8 PayPal offers fast funding time, flexible loan amounts and achievable credit requirements.
Affordability 2.8 PayPal’s lack of upfront transparency around fee amounts drags this score down.
Transparency 4.4 It’s easy to tell whether your business is likely to qualify for these loans without a hard credit check.
Customer experience 5.0 With six-day-a-week customer support, an easy online application and a handy app, PayPal lands a perfect score.
Flexibility 3.8 PayPal offers two loan types, but once you’ve set your payment schedule, you’re locked in.


To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Laurie Garrison

Laurie Garrison is a freelance business, sports business and tech writer based in Central Florida. She has been a contributor to Bankrate since 2020.

Edited by