Working Capital 4th loan application denied with error code 650. Does anyone know why?

[vrdr1981]

Hello all,

I am trying to apply for my 4th PayPal working capital loan and am not getting approved. I had 3 loans within the past year and a half and paid them all off ahead of time. The last loan I had I paid off 2 weeks ago and used few thousand dollars to bring it to zero balance. I thought I will get approved right away just like all the previous loans, so I could buy new inventory but I keep getting an error message 650 😞 If I knew I would not get approved I would have used the cash I had to buy new inventory instead of paying the loan off early 😞 I called and they keep telling me to try more so I have been trying every single day. I really need to get restocked because less inventory I have less sales I am showing. 

Please let me know if anyone has any suggestions. 

Thank you

Veronika

[Whac-A-Mole]

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@pantaed wrote:

yeah but this loan is based on your sales and I have a separate tax ID for the business.  It just sounds like they either changed their lending algorithm or have used up all their available lending capital. 

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it could be both,also they may  favor some applicants over others.

[rt2013]

7 days after the last loan has was paid off I am no longer getting error 650. Am now getting error 640.

[jmastonishment]

They do not pull a credit report for the loan...that's not true. They look at sales, fluctuation of and receiving of.

[pantaed]

If anyone getting the 650 code gets approved, would appreciate hearing how long it took or what changes you made. 

[rt2013]

Had a buddy of mine who is also a pro-seller apply and he also got 650. They just aren't loaning money right now.

[pantaed]

Ugh, wish I found this forum before paying off the last loan early.

[rt2013]

Still getting denied 3-weeks later, luckily I was able to get a loan from a family member that will allow me to purchase inventory and grow. My denial letter for the 650 code stated that the approval was based on a points system and I did not have enough points based on the following: I am in a high-risk industry. (This has always been the case, and my industry is listed in the application field, not a huge deal). I have growth that is not consistent with my industry. (My sales have declined in the past year, as I focused on higher-margins rather than volume). My sales have fluctuated. (Also true) Basically, my hypothesis is that PayPal is much more likely to loan to you if you show growth in sales. This was my 7th loan, and I hope to get an 8th in the next few months by changing to a high-volume business model like I used to have.

[mefizto]

My clothing line is thriving. So I paid off my 7th loan and also decided to pay early, I made the huge mistake of using a large cash amount to pay off early (18k) in hopes of getting approved quick for a next bigger loan and get inventory for the summer rush. Came back declined for a 701 error and that took 2 months to change into a 650 error. I’m about to loose my business. 😞 At this point I feel like I gambled on an algorithm and lost it all. 2017 is the year PayPal killed a successful 3 year up-and-coming clothing line.

[Dae_maree]

Also got error 650. Are we all clothing sellers? Are we all selecting fashion? Are we all selecting purchase inventory? I'm wondering if they only allow certain amounts per categories. Anyone successfully get approved that received error 650?

[Dontstressdistr]

I received the same 650 code. I sell furniture & home decor so no clothing here 😕