PayPal working capital decline DLGJ0656

[chiwinghung]

I've had been use PayPal for 5 years, in total took 7 PayPal working capital all paid off early and in good standing with my account, sales consistently everyday top rated and power seller on eBay, but this time decline with unknown reason, it's really desperate and disappointed during this period. 

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[Bamabots]

I realize we have been extremely lucky to be in the right industry and have the near-perfect staff.

We took out an $85k advance September '19 to buy out a cider press company.  We paid it back in 248 days.   We took advantage of 2, 30-day extensions or we'd have paid it back in only 6 months.

Because of the sales increase (from using the PPWC advance) PP kept putting 7-day holds on our account.  Ok, no complaints from me.  However, PPWC declined us another advance for 3 weeks because we had a history of PP putting holds on our account.

Last week they wouldn't loan me enough for a ham sandwich.  Yesterday PPWC offered an extremely large advance at an incredibly small loan fee.  Normally I figure the loan fee of around 30% APR.  This one comes in around 6% APR. 

For the last 60 days PP hasn't put a hold on our account so I'd guess that 60 days the expiration date for PPWC?

I'm not bragging, I'm just letting people know PPWC is approving advances.

[Tulucitor]

It is not about the industry at all . Paypal give loans now to random businesses , their business starting to be a joke , we are a waste management company , ultra essential , good sales and denied for 4 months with no explanation . Code DGL065 all over again . They are a joke and costumer support as well . I have no reasons to stay with these scammers ,

[NinjaKato]

In all honesty, I'm wondering if any business types are applicable for loans...?
Anyone I have spoken to who got a loan previously (this year or late last) with PPWC have said they receive the same message now when they try to apply for another loan using their same business title/type: "Our records show your business currently falls into an industry category that doesn't qualify for PayPal Working Capital."

It's like dude, LIST what businesses are eligible so we don't keep trying to apply without knowing our business isn't actually eligible!
They have to be all cryptic about it.
I called to apply last week and the guy said the same reason "Our records show your business currently falls into an industry category that doesn't qualify for PayPal Working Capital."
He also said "I can't tell you why your business was rejected over the phone, but you'll receive an email and a mailed letter telling you within a short span of time".

Literally frustrating!

[NinjaKato]

It'd be nice if they would actually work on all PPWC loans and advances.

I only had a loan of 5k and paid it back earlier than the set date and yet I'm still getting rejected for another loan on account of the whole "We don't give loans to this particular business type" which is bogus because my business type hasn't changed since my last PPWC loan earlier this year.
There's been no messages from them either about getting another loan either, just rejection letters and emails on any attempt I make.
Tried again with a different term for my business type on their list of businesses (a service I provide but isn't the main focus of my business) and again "Our records show your business currently falls into an industry category that doesn't qualify for PayPal Working Capital."

Honestly... I'm beginning to wonder what businesses DO actually qualify for a loan?
Seems like everyone I've spoken to has been rejected, and they work all kinds of businesses and tried for a loan (having been accepted and given a loan by PP previously).

I'm glad you were fortunate to actually get one though. Glad at least some are able to utilise the tools PPWC has.

[Ghostmech2002]

Same. Still declined a month later.

[Ghostmech2002]

Wish this was the case for me. Alas no, still declined after paying 2 loans off early.

[Bamabots]

It has to be very frustrating being declined on what equates to a secured loan.  I wish PPWC would be more transparent in their risk factor considerations.

I know paying early or quicker than expected carries little to no weight, yet not making the 5%/10% per quarter minimum is a serious negative.

I understand that having a negative balance, even for a short period of time is a negative. 

I have experience with PPWC being denied because we had 7-day holds on new sales revenue because PP thought we were growing too fast.  Even though we kept a very high balance.

I don't know if the average daily balance makes any difference?  I also am uncertain if the personal credit score affects anything?

[Robinlin_71]

I’ve had up to 15,500 in working capital loans & even paid 1 of way ahead oh schedule during covid shelter in place for covid . Paid off loan still shows on my account but does show paid in 11 months only because I opted for the suspension of payments for 2 months during lock down and the uncertainty of what was going to happen. ( even exceeded the minimum payment due for the quarter by twice as much ) After paying it off , it look several days to receive the paid off email . 2 weeks before I paid off my loan for some odd reason my regular sales were placed on hold , I had 2 on 1 day for 200.00 , I called and was told that there was a glitch and I was not the only merchant this was happening to , they manually released my funds and stated that they would add my name to some ticket to submit so that my sales wouldn’t be held again . The very next day The first sale came in and while I was on the phone with them again 2 more came in totaling an additonal $400 in sales . I explained what happened yesterday the rep had no idea what I was talking about , finally talked to a supervisor & again my holds were manually released & I was told it was a mistake . So when I reapplied for my new working capital I was denied because of HOLDS that had been issued on my account . I called working Capital explained what was up , they couldn’t find any holds . I said exactly because it was a mistake on PayPal’s end and it was manually released . She informed me to wait until 30 days after they were manually released because they can not over ride the working capital loan on how ever it’s done. So I did. Now I get denied with the same code you all have . I don’t have any disputes , my processing volume never decreased , my sales have not changed even when you look at year to date even being shut down for shelter in place , they actually exceeded from previous year , I’ve been in business since 2007 and have had my account with PayPal for over 5 years and my account is used as the only means of payment from my company . So nothing has changed. Was told again by working capital to wait til 1st to reapply because the system in which decisions is based off looks at the current quarterly info & from what she has seen this denial is the one people get before they are approved. I applied again and was denied with sales up. I was also told that they are revamping how they will be doing these loans now because of covid . So basically Paypal isn’t going to be giving anyone any more working capital loans from what I can see and no I am not an eBay seller/merchant.

[ImaPangolin]

The reason I was declined was too many disputes. Change in volume. Too many non business transactions. So I called. How can this be I said? I’ve been using PayPal for 10 years and I’m that time I’ve NEVER had a single dispute or chargeback. Ever. My volume has been steadily increasing and everything is a business transaction. So I don’t know what to do. They said they agree on my observations but the algorithm can’t handle my increase in volume so I’m denied. The algorithm is broken. If someone on the technical side wants to contact me, please do.

[Bossjord91]

I'm in the exact same situation and I'm rather annoyed about it. I've had 7 previous cash advances and the last one being last October for £28,000 + a fee of £5,142. Last week I paid the remaining £5420 off in full. I haven't been affected by COVID, I'm up 59% in sales with a yearly turn over of over £140,000. I'm not on the eBay managed systems and don't have to be until the middle of November. I called PayPal three times prior to paying off the loan asking the question are they still giving loans, explained I'm not on the new eBay system and all three people told me it would be exactly the same as before when applying. Surely they should advise you they are not taking loans etc? I've got no chargebacks, no issues and up 59% with each month getting stronger. Surely they would be happy for the custom?

I feel like giving a big middle finger to paypal and calling it a day with them. Pathetic that nobody knows whats going on and you gave to wait 72 hours to get a reply from Working Capital.