PayPal Offering Business Loans

[clarry100]

We have just received an email to one of our email accounts that is registered to one of our PayPal accounts.

The email is offereing instant business loans to help you develop your online business.

There are embedded links but they look a bit dodgey. They have the word "paypal" embedded in there somewhere.

Is this legitimate?

Are PayPal a licensed lending organisation now?

Anyone else getting these?

[the_alchemist_australia]

Yes I received one also. I did take the time to watch the video and do the tour etc.

Applied for the loan and the money is now in my paypal account.

I think it is an awesome idea and for once am actually happy with paypal!

[lyndal1838]

I doubt that it is legal in Australia unless paypal has applied for a new/different APRA licence.

It must be a US thing.....I hope you have read the fine print.   Their banking practices are very different to ours....over there paypal can pay interest on money held in your paypal account...they run an Investors Club for sellers.

[digital*ghost · Accepted solution]

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@clarry100 wrote:

Is this legitimate?

Are PayPal a licensed lending organisation now?

Anyone else getting these?

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I got an email invitation today, but was seeing the working capital banner most times I logged into PP, anyway (it was introduced late last year, limited availablility back then). I took the "tour" about a week ago. Currently resisting temptation - not keen on debt and never had any for my business - but it's not easy  (nearly every day I get someone asking me whether I stock a certain product, and I certainly intend to get most of the more frequent requests, but such a slow process when I can only reinvest my meagre profits and buy in smaller wholesale quantities most of the time... o.o

[saarzi]

how much are the loans for?   Havent received anything.

[digital*ghost]

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@gtx305 wrote:

how much are the loans for?  

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They say on average, you'll get offered up to around 8% of your annual turnover, and interest is a fixed fee based on the repayment terms you choose. (Basically, what happens is they deduct a percentage of the payments you receive daily, so if one day you receive no payments, then PayPal won't deduct anything, but the higher perentage you choose, the lower the interest fee, with no reduction or fees for early or one-off payments etc). 

https://www.paypal.com/au/webapps/workingcapital/

[clarry100]

So it is legit...

I thought it sounded dodgey so I sent it off to the paypal spoof address. LOL.

And guess what... I got back their standard reply saying you are right it looks like phishing and thanks for forwarding it to us we will investigate it yadah...yadah etc etc.

Haha... so much for their investigation.

[digital*ghost]

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@clarry100 wrote:

So it is legit...

I thought it sounded dodgey so I sent it off to the paypal spoof address. LOL.

And guess what... I got back their standard reply saying you are right it looks like phishing and thanks for forwarding it to us we will investigate it yadah...yadah etc etc.

Haha... so much for their investigation.

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Lol, same thing happened when I sent off one of their emails to the spoof address a couple of years back.  

Makes sense in a way - they get all your personal info and make money by offering to give you money. 

[queenslander-one]

You would need the loan to Pay for all your Ebay/Paypal Fees also in USA rates are around 0% for deposits.

[aceantman]

don't worry i recived the email and went to have a look

look like my $28000 in sales on ebay not good enough

PayPal Working Capital

We're sorry

PayPal Working Capital is only available to selected businesses right now. Unfortunately, your business is not currently eligible to apply.

If you become eligible, we'll be in touch. In the meantime, if you have any queries, please contact us.

Anthony