Application for PayPal Working Capital Declined? Here Are Your Other Choices

What to Do If You’ve Been Declined for PayPal Working Capital

How Does PayPal Working Capital Work?

Your Step-By-Step Guide to Finding Capital

• No Credit Check

  This is one major draw that PayPal working capital is able to boast because it’s very rare for business lenders to not consider your credit in the underwriting process. Thanks to this unique positioning within the industry, PayPal is able to evaluate your application partially by your PayPal transaction volume rather than your credit history.

  If you’re a business owner who’s thrown everything you have into your business’s success—including your own financial stability and credit history—then this could be a huge game-changer for you. Plus, if you’re worried about a hard credit check dinging your score, this credit-check-free business loan was probably your solution.

  Not to worry—if this was your main reason for applying for PayPal working capital, you will have other no-credit-check funding options to move forward with.

• Quick Financing

  Did you land on PayPal because you were specifically looking for a working capital source that could get you funded quickly?

  Though having your application for PayPal working capital declined might have slowed down your process, there are plenty of other business lenders that have even quicker turnarounds once you apply.

  If your main objective is to get speedy funding, then the quicker you move forward with another online short-term lender, the better.

• Automatic Payments

  If you decided to apply for PayPal working capital because it features an automatic, streamlined repayment structure, then you’re in luck. Almost any loan these days—especially if secured through an online lender—will offer an automatic scheduled payment.

  However, if you liked that PayPal deducted your repayments from your transactions before you even saw the money yourself, that’s another story.

  There are still short-term lenders who offer this feature—most merchant cash advances work like this, in fact—however, not all of them are as affordable as PayPal working capital. At the end of the day, if you want to secure a loan with credit card receivables payments, then you might end up really paying for it.

• No Prepayment Penalty

  Another huge draw that PayPal working capital boasts is no prepayment penalty. So you won’t have to pay a fee if you pay off your loan ahead of schedule.

  Many lenders will attach prepayment penalties to their loans because of the interest they’ll lose out on when you pay off your loans early. However, PayPal won’t punish you for being on top of your finances. But they’re not alone in that either—if you’re specifically searching for a lender who won’t charge you a fee for paying off your business loan early, you’ve still got a lot of lender options out there.

• Lenders With No Credit Check

  If the main draw to PayPal was that they don’t check credit during their underwriting process, then consider another lender that won’t make any kind of inquiry, hard or soft, into your credit score.

  Here are some of the funding options you have for lenders that won’t check your credit during their underwriting process:

  • The peer-to-peer online lender Kiva connects businesses with peer lenders. Think Kickstarter but for loans. The best part of this funding option? Their application process involves what they call a “social underwriting” structure, which relies on human interactions, not credit scores, to determine how trustworthy you are as a borrower.
  • Another funding option that won’t check your credit in the underwriting process is Square Capital. You’ve probably seen Square’s main product attached to iPads in stores all over the country. In fact, Square occupies a similar part of the industry as PayPal—they’re a payment processor that offers funding options that are repaid through their payment processing. Just like PayPal, Square will judge your application based on your sales history and, as a result, won’t check your credit score.

  Keep in mind though that a loan offered with “no credit check” is frequently too good to be true, or from a predatory lender. So if PayPal working capital declined your application, don’t just jump to work with any lender offering a loan with “no credit check.” Do your research first and make sure the lender is trustworthy.

• Lenders That Offer Quick Financing

  If you’re specifically looking for a fast business loan, then you should consider alternatives to PayPal that offer just as speedy—if not speedier—funding.

  • Some lenders, like The Business Backer, can fund applications in under a day. Even better? With this lender, the application and underwriting process will take three days at the very most.
  • Another lender that moves particularly quickly is Bluevine. They guarantee to fund loans within three days, but on average, they will only take 24 hours to fund your application if you qualify.

• Lenders That Offer Automatic Payments

  If the automatic repayment was a particularly strong draw for you, then consider looking into lenders that offer merchant cash advances (MCAs). Though merchant cash advances tend to be expensive and perhaps not worth their convenience, there are a few lenders that offer relatively affordable MCAs that still give you access to convenient automatic repayments:

  • One option for a merchant cash advance is Rapid Finance (formerly Rapid Advance). Their offers manage to be both convenient and won’t break the bank. For your first MCA through Rapid Finance, you can qualify for an advance of up to 50% of your business’s monthly credit card revenue. After you pay off your first Rapid Finance MCA, then you’ll be eligible for even more funding at even better terms.
  • Another option you have is to work with CAN Capital. They offer a merchant cash advance up to $250,000 and you can get the funds deposited to your account in as little as two days. You’ll make automated flexible daily payments that are a percentage of your receivables.

• Lenders That Don’t Have a Prepayment Penalty

  Did you apply for PayPal working capital because you wanted to avoid prepayment penalties?

  If so, that’s great news, because there are many business lenders out there that won’t penalize you for paying off your loan early. Here is one of your options:

  • With ForwardLine you can actually be rewarded for paying off your loan ahead of schedule. That’s right—depending on where you are in your loan repayment schedule, ForwardLine might offer you a prepayment discount.

• A Lender That Offers All of These Perks

  While many lenders offer multiple perks that PayPal working capital offers, there’s one lender in particular called FundBox that offers every single perk that PayPal working capital does.

  Their invoice financing product comes with no credit check, a speedy financing turnaround of about two days, automatic payments, and no prepayment penalty to speak of. Plus, your outstanding invoices will work as forms of collateral. So, if you qualify, you’ll be able to access APRs that are competing with PayPal’s affordable terms.

  That said, this product does come with a very specific use—to advance outstanding invoices for B2B businesses—whereas PayPal’s product puts the decision-making power in your hands. If you’re looking for a working capital loan and nothing else (and you weren’t able to qualify for PayPal’s product), then you might have to sacrifice one of the key features that PayPal working capital boasts in order to find it.

• FundBox

  In order to be eligible for FundBox’s invoice financing, the only minimum requirement you’ll need to fill is at least three months in business.

  As long as you have at least three months of business history under your belt, you’ve got a shot at securing this premium funding option.

• ForwardLine

  Next up, in order to be eligible for funding through FowardLine—the lender that offers prepayment discounts—you’ll need to fulfill the following minimum requirements:

  • A personal credit score of at least 600
  • At least 10 years in business for retail, wholesale, and construction businesses. At least three years for any other business
  • At least $150,000 in annual revenue

• Rapid Finance

  Looking to secure an affordable, convenient MCA through Rapid Finance? Though they offer different tiers of MCAs, to access their standard product, you’ll need to make sure that you have these qualifications covered:

  • A personal credit score of at least 550
  • At least three months in business
  • At least $5,000 in monthly credit card sales

• Bluevine

  If you’re aiming to get funded quickly, and, as a result, you’ve decided that Bluevine is the lender for you, you’ll need to be sure to ensure that you measure up to their minimum requirements.

  For their line of credit, you’ll need:

  • A personal credit score of at least 625
  • At least 24 months in business
  • At least $40,000 in monthly revenue

• The Business Backer

  If you decided you’d prefer to access fast funding through The Business Backer’s purchase of receivables, then you’ll need to have the following minimum requirements:

  • A personal credit score of at least 550
  • At least 12 months in business
  • At least $180,000 in annual revenue

• Square

  Want to get a no-credit-check loan through Square? Though they don’t provide concrete minimum requirements, they do say that they generally look for the following qualities in a borrower:

  • Processing at least $10,000 every year through Square
  • Taken a payment through Square within the past week

• Kiva

  Want to try and get a no-credit-check loan through Kiva? Because it’s a nonprofit, fundraising-based platform, you won’t have to fulfill any minimum requirements. However, you’ll typically need to be a socially oriented business to qualify for Kiva financing.

Moving Forward After Your Business Was Declined PayPal Working Capital