PAYPAL WORKING CAPITAL DENIAL FOR SECOND LOAN

[waterworking]

I was invited to use Paypal's new Working Capital Program. I at first was a little unsure but thought I give it a shot and borrowed the minimum which was $1000 just to see if it was what they said it was. I got the loan 5/18/2014. I paid the loan off everyday as stated and then on 5/31/14 I paid the loan off completely. I tried for a second loan and was denied. Has anyone else had this issue and have you gotten a reason why you were good enought to loan the first time but instantly turned down the second. Makes no sense. Please help

[oscodapete]

I have received a denial letter every time I applied, with different excuses.  The last few letters included "We appreciate your business and your interest in our product. We were not able to approve your request for a PayPal Working Capital business loan based on our review of your PayPal account information". I was okay for the first loan, but they want nothing to do with me now. I wonder what the ratio of positive second loans verses denials is. There are lots of denials noted in this discussion, but very few approvals. As I have stated before, I will not recommend PayPal or any of its programs to anyone.

[NinjaTech]

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@oscodapete wrote:

 As I have stated before, I will not recommend PayPal or any of its programs to anyone.

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Personally, I think working capital is great. Its incredibly hard to find funding that carries a flat fee like working capital does.

Everything else has interest or monthly fees or hidden fees.

Last year I got an $8000 loan from lending club. They charged me $500 just for granting the loan. On top of the monthly interest.

I think the main complaint people have with working capital is getting denied. If paypal denies you a loan, they are not harming you in any way. Sure it might be disappointing. But you should be able to carry on with business as usual without it.

I'm not saying paypal is without problems.. But so far working capital is I think their best product for small businesses.

[oscodapete]

My impression was WebBank is the responsible party giving or denying a loan, at least that's what my letters say. PayPal is just a middleman. It's one thing to say how positive this program is if you receive a second or third loan. It's not positive when you were successful is applying for, and paying off, the first loan but denied a second loan with reasons given you don't understand.

[NinjaTech]

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@oscodapete wrote:

My impression was WebBank is the responsible party giving or denying a loan, at least that's what my letters say. PayPal is just a middleman.

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WebBank is also the underwriter for Kabbage.

Personally I find Kabbage more frustrating because despite connecting my ebay and amazon stores, plus all my bank accounts.. They only approve me for $500 which is completely useless to me.

I took it a couple times and paid it back the next day just to see if some activity would give me an increase but it did nothing...

At least paypal working capital is tied directly to my annual sales and is a lot easier to understand than kabbage... In my experience anyway.

[alanmaier]

Ahh  - good call on WebBank being behind both PayPal Working Capital and Kabbage. For someone like me who had to turn to Kabbage when my first PPWC loan was used up - and then again when my second PPWC loan was used up - they can look at the history and balance state of both. 

I have nothing against Kabbage, you just have to handle the amounts carefully. It's when you have to pull out funds, and then pull out funds a month or two later that you have some huge bills to pay as they do indeed stack and are a fixed 6 month period. The key is to take the max (or defintely as much as you will need for a 6 month period) and place the extra funds away. Then you don't need to borrow again when a major inventory purchase comes along - or when sales are so slow that you have to borrow just to pay. 

Speaking for myself, I purchase inventory all summer long when the cost of goods is down. My main inventory is stocked to the rafters, but it's the smaller stock that I am missing out on. One thing eBay's best match search engine sees is quantity in stock. I sell an item for $10 that a competitor sells for $30, and they sell a TON of them to my next to none. Best match placement. It's items like that where working capital is a Godsend. 

[jbideas]

When I first applied I was prepared to be turned down.  So it was a pleasant surprise when we we approved.  I thought well this is great because our paypal sales are not only steady but they have increased steadily over the past three years.

I understand it's a pilot program.  What I don't understand is WHY they have to be so opaque.  I mean for a pilot program they **bleep** sure advertise HEAVILY to apply for a loan even while you still carry a balance.

Also why make repeat borrowers fill out the application over and over?  

Of course we can carry on doing business without the loan.  But it's still kind of a slap in the face to be approved based on your paypal performance and then when you get the money and you perform better by incrasing sales and paying the loan off early you are treated as if you did something wrong.

Seems to me that even though this is a pilot program they could be a lot more "human" in how they handle it.

I wish I hadn't paid off the loan early now as I could have used that money to fund something else.

My resolution now is to simply get us to the point where we are never in need of these types of small business loans.  Then I don't have to worry about whatever games they want to play with their alogorithims.

[starwarsgeek]

I applied and was approved for a loan, which I have now paid off. I applied for a second loan, and went through all the steps up to the screen where it says "Click here to agree to the terms and get your money" or whatever language it has. I read all the terms and conditions, and clicked continue, and got a message saying "There has been an error". And now, that's all I get. Whenever I go to the PayPal Working Capital page, I get an error message.

[alanmaier]

Try cleanring your browser history and cache. I suspect more of an Internet / browser issue here than a PayPal site issue. You might also try another browser or a different computer. 

[starwarsgeek]

I tried cleaning the cache and using a different browser. Also tried from my laptop, desktop, and iPad and get the same message:

It looks like there has been an error.

We're sorry, there has been an error.

It's a 'real' PayPal page, I have all the WC links and PayPal logos and things, I just don't get anywhere. I guess I need to call customer service.

[NinjaTech]

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@starwarsgeek wrote:

I tried cleaning the cache and using a different browser. Also tried from my laptop, desktop, and iPad and get the same message:

It looks like there has been an error.

We're sorry, there has been an error.

It's a 'real' PayPal page, I have all the WC links and PayPal logos and things, I just don't get anywhere. I guess I need to call customer service.

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I think you might want to actually call paypal/working capital on this issue.