MyParcelDelivery Blog PayPal – Working Capital Scheme to extend to the UK

New funding option for UK businesses from PayPal As a small business, whether selling via your own ecommerce website or using existing sites such as eBay and Amazon, there are challenges around every corner. Since the start of the crunch in 2007 it has become increasingly difficult for small business to get funding to enable not only the business launch but also growth which is vital for both the business and the British Economy as a whole. Last year, PayPal saw this challenge in America and launched a loans programme which has since provided around $140 million in cash advances to SMEs. They have now announced a similar programme to launch in the UK, initially to specially selected merchants but to become more widely in 2015. We have identified some of the key features that will set PayPal aside from the rest of the finance market as they begin to offer cash advances rather than traditional loans. Fast approval process as they already have customer data – funds could be available around 5 minutes after the application Repayment schedule is not set. They will be made as a percentage of future sales revenue No interest fees or late payment fees No external credit checks One fixed charged for programme sign up Cameron McLean believes that it is time for them to make a difference to UK businesses. The Managing Director of PayPal UK said that “Small businesses are the lifeblood of the British economy. But seven years after the start of the credit crunch, many of them are still struggling to get funding.” He went on to comment that “According to the British government, around a third of SMEs rely on retained earnings or the owner’s own finances rather than bank or equity funding. This means that many find it very difficult to finance their present needs or future growth. And the problem is acute for smaller, online businesses. PayPal is well placed to make a difference.”