PayPal Surpasses $30 Billion in Global Small Business Lending

PayPal Holdings, Inc. announced Wednesday that it has surpassed $30 billion in global loan originations, providing more than 1.4 million loans and cash advances to over 420,000 business accounts worldwide since 2013. The milestone underscores the company’s ongoing role in addressing the persistent challenge of capital access for small businesses.

Small businesses account for more than 43% of the U.S. GDP and nearly 40% of private sector payroll, yet more than three-quarters of them remain concerned about securing the capital needed to sustain or grow their operations. In response to this concern, PayPal continues to expand its suite of financing solutions tailored to the unique needs of small and medium-sized businesses.

The company offers PayPal Business Loan and PayPal Working Capital to provide businesses with accessible, streamlined financing options. PayPal Working Capital, launched in 2013, is repaid as a percentage of a business’s PayPal sales and is currently available in the U.S., UK, Germany, France, Australia, and the Netherlands. PayPal Business Loan, introduced in 2017, features fixed repayments and is open to businesses that do not necessarily use PayPal to process payments.

“Access to capital is consistently one of the top challenges small businesses face as they look to maintain and scale their businesses,” said Michelle Gill, EVP and GM of SMB and Financial Services at PayPal. “Traditional business loans are not only difficult to secure for small businesses, but the application process can be challenging and prohibitively time consuming. PayPal’s financing solutions have a streamlined online application process with no lengthy paperwork or extensive credit checks, and approved PayPal loans are funded within minutes. We launched PayPal Working Capital and PayPal Business Loan to serve this important need, and to provide a quick and responsible way to inject much needed capital to help fuel small business growth.”

PayPal reports that its financing offerings are widely used for purposes such as purchasing inventory, hiring staff, making payroll, and scaling operations. The company noted that its customers renew loans or access PayPal’s financing services more than 90% of the time. Businesses also experience increased PayPal payment volume—36% after adopting PayPal Working Capital and 16% after taking out a PayPal Business Loan.

Customer satisfaction scores reinforce the success of the offerings, with Net Promoter Scores of 76 for PayPal Working Capital and 85 for PayPal Business Loan.

This article, "PayPal Surpasses $30 Billion in Global Small Business Lending" was first published on Small Business Trends

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