FAQs

Generally, working capital is the difference between your business's assets and liabilities. Businesses use working capital to run their business and pay for everyday expenses as well as invest in new projects and initiatives.

Follow these simple steps:

1. Complete the simple application form - you’ll need basic information about your business and yourself as the authorised representative on the account. We may ask you for additional information.
2. Select the amount of the merchant cash advance you’d like to receive for your business. The maximum amount available will depend on your PayPal sales and account behaviour.
3. Choose the percentage of your future PayPal sales that will go towards repayment of the merchant cash advance and the associated fixed fee.
4. If approved, funds are transferred to your PayPal account to use as you wish for your business.
5. Repay automatically with a percentage of each sale until your balance is paid in full. You can also make manual payments or pay the cash advance in full with no early repayment fee using your PayPal balance or a linked bank account.

Please note: Due to high demand, application processing and decisioning may be delayed.

The minimum requirements to apply for PayPal Working Capital are that you:

1. Have had a PayPal Business or Premier account for 3 months or more;
2. Are registered in the United Kingdom;
3. Process at least £12,000 if you have a Premier account, or £9,000 if you have a Business account, in eligible PayPal sales annually*; and
4. Have repaid any prior PayPal Working Capital cash advances.
5. These requirements must be met for at least 5 days in advance of an application.

Additional data regarding your PayPal account history, business performance and your financial position are also considered as part of the application process, to determine if you are eligible for PayPal Working Capital and to determine the size of the merchant cash advance available to you.

• Eligible sales are those made through your PayPal account net of any transaction reversals and excluding any non-business person-to-person transfers. Also excluded are any transfers or deposits you make yourself into your PayPal account, and any gambling transactions.

Yes, PayPal Working Capital is also available in the USA, Australia, and Germany. Please note the terms, features and eligibility criteria for PayPal Working Capital vary across each market.

If your application is successful, funds are transferred to your PayPal account in minutes.

If your application is successful, funds are transferred to your PayPal business account balance and can be accessed in the same way as your other PayPal funds.

Did you know? You may find it easier to access funds straight from your PayPal business account with a PayPal Business Debit Mastercard. The application is simple, takes just a few minutes and you’ll receive additional benefits such as (terms and conditions apply):

1. Unlimited and uncapped 0.5% cash back on your spending with the PayPal Business Debit Mastercard.
2. Instant access to your PayPal funds. You can withdraw cash worldwide from ATMs for a flat fee of £1 per withdrawal*.
3. No monthly charges and no foreign exchange fees on your international, online or in-person purchases

*Some ATM providers may levy their own charges for withdrawals

No, you don’t need to change a thing. Simply continue to process your business payments through your current PayPal account until your merchant cash advance amount and fixed fee have been repaid in full. Repayments occur automatically as a percentage of each sale.

No. We do carry out some checks to establish your business performance and financial position, but we do not report your position back to any credit reference agency so your credit score will not be affected.

Your PayPal Working Capital cash advance offer is valid for a limited time. Should you decide to leave the application, your offer will have a specific expiry date. It remains available via the PayPal Working Capital site, and you only need to complete the application process to receive your funds. However, you will need to re-apply in full once your offer expires.

There’s just one fixed fee, which will be explained before you complete your application for PayPal Working Capital. There's no interest, no late fees and no fees for any additional repayments you make.

No. You’re charged a single, fixed fee. There is no interest on your merchant cash advance.

The fee is determined by your business's PayPal sales and account history, the merchant cash advance amount and the repayment percentage you select.

The higher your daily repayment percentage, the lower your fixed fee. A lower repayment percentage results in a higher fee – but more flexibility for your business, since you’ll get to keep a larger share of your daily PayPal sales.

Repayments are automatically deducted from your PayPal account as a percentage of each sale until the cash advance amount and fixed fee are paid in full.

You can also make manual repayments or pay the cash advance in full with no early repayment fee using your PayPal balance or a linked bank account.

Your repayment percentage options may change based on the cash advance amount you choose. For higher cash advance amounts, some repayment percentage options could become unavailable.

Your first automatic repayment will occur approximately 72 hours after you receive your merchant cash advance. From then on, repayments are taken from your PayPal account as a percentage of each sale.

No. The repayment percentage you choose when you sign up applies until your balance is paid in full, so choose it carefully. However, since your repayment amount is a percentage of your PayPal sales, the amount deducted does change daily. If your sales fluctuate, so will your repayments.

If you have further questions concerning your repayment process please contact us.

You can make manual payments at any time from the PayPal Working Capital Dashboard using your PayPal balance or a linked bank account.

No. Your fixed fee is determined at the time of your application and is not altered by early repayment.

There are no additional charges if your PayPal sales fluctuate or if you have days without sales. However, regardless of sales volume, a minimum level of repayment is required every 90 days, calculated from the day you receive your cash advance. Your minimum repayment amount is determined by your business profile and the terms of the cash advance you select, but will not be more than 10% of your repayment amount (cash advance plus fixed fee). If you don’t meet this requirement, we may ask you to repay the total amount outstanding.

The minimum repayment amount applicable to your cash advance will be outlined in your terms and conditions, which you will view before completing your application, as well as within the application flow.

We take your repayments from the balance held in the currency of your cash advance (GBP/£), if funds are available. If you don’t have enough funds in that GBP balance to cover the repayment, we may deduct funds from your other currency balances as required and PayPal’s standard currency conversion fees would apply.

If you make sales in multiple currencies, we calculate what each sale would be in GBP equivalent then apply your repayment percentage to that amount.

We consider sales as all payments you receive. We don’t include transfers from your linked accounts, personal payments, chargebacks or gambling transactions.

Also, note that net sales include taxes and postage costs in cases where they were included in the amount of the PayPal transaction paid by your customer.

The amount that you repay from each PayPal sale is calculated after PayPal transaction fees are deducted. Your PayPal transaction fees won’t change as a result of receiving the merchant cash advance.

The repayment from each sale is deducted immediately from your PayPal account. If a sale is returned, PayPal Working Capital will not refund the repayment amount from that sale to your PayPal account.

You will receive an email when your PayPal Working Capital cash advance is closed, at that time you will be eligible to apply again. This may take up to 72 hours after your final repayment is processed or up to 5 business days if your final payment was via bank transfer.

You are only able to have one open PayPal Working Capital advance at a time. You can apply for another cash advance once the existing one is paid off - many customers do. Future applications are subject to eligibility.

Having taken a PayPal Working Capital merchant cash advance in the past does not guarantee that you will be approved again in the future. Each application is assessed individually at the point the application is made, and is subject to account and sales behaviour, previous advance repayment performance and current PayPal policies.

You may apply for another PayPal Working Capital cash advance three days after you have repaid your existing cash advance . Please visit https://www.paypal.com/workingcapital/application to complete an application.

Please update your business and primary authorised user's information if anything has changed since your last PayPal Working Capital cash advance.

Please note, it may take up to 72 hours after your final payment is processed or 5 business days if your final repayment is via a bank transfer before you may be eligible to apply for another PayPal Working Capital cash advance.

Each application for a PayPal Working Capital merchant cash advance is assessed at the point the application is made. The size of merchant cash advance available and applicable fixed fee may change depending on your account and sales behaviour, previous advance repayment performance and current PayPal policies.

PayPal Here was deprecated on 30 September 2023. We recommend that you migrate to our latest POS solution, Zettle by PayPal, to continue accepting payments, manage inventory and track sales.

At PayPal, we are always working to deliver innovative solutions that meet the needs of our customers. From time to time, as technology evolves, we update the products and services we support to take into account our broader global product portfolio. With this in mind, we discontinued PayPal Here services in the US and UK as we invest in solutions, like PayPal Zettle products, for the emerging in-person payment needs of our merchants and their customers.

Because PayPal Here is no longer available as of 30 September 2023, you are not able to use PayPal Here sales to repay your PayPal Working Capital advance.

Yes, if you do not have an existing Zettle account and choose to migrate to Zettle by PayPal using this link, your repayments will be automatically deducted from the sales you process through Zettle by PayPal and will be used to repay your PayPal Working Capital advance.

If you have an existing Zettle by PayPal account which is not linked to your PayPal account, sales processed through this account will not be used to repay your Working Capital cash advance at this time. You will still need to meet the minimum payment requirements. To do this, you can make manual payments at any time from your PayPal Working Capital Dashboard. Payments can be made using your PayPal balance or a linked bank account.

If you have a PayPal Working Capital cash advance and choose not to migrate to Zettle, after 30 September 2023, you will no longer be able to use PayPal Here to process your sales or for these sales to repay your advance. You will still need to meet the minimum payment requirements of your PayPal Working Capital cash advance.

If you process sales through your PayPal business account outside of PayPal Here, your repayment percentage will continue to be deducted from those sales and used to repay your PayPal Working Capital cash advance. You can also manually make advance payments to meet the minimum payment requirements. You can review your Cash Advance Terms and Conditions for your PayPal Working Capital Account in your dashboard if you don’t know your minimum payment amount.

You can make manual payments at any time from your PayPal Working Capital Dashboard. Payments can be made using your PayPal balance or a linked bank account.

If you do not meet the minimum payment requirements, you will be in breach of your Cash Advance Terms and Conditions, and the entire outstanding advance could become due. Limits could also be placed on your PayPal account which would restrict your ability to make and receive payments.

Please refer to the Cash Advance Terms and Conditions for more information.

Your previous PayPal Here sales will be considered in determining your cash advance eligibility the next time you apply for PayPal Working Capital.

Your PayPal Zettle sales will be considered when determining PayPal Working Capital eligibility.