PayPal Stories Archive

Lisa Brooks grew up learning how to cook from her mother, grandmother and great grandmother. In 2010, Lisa decided it was time to follow her dream and turn her passion into a business. She left her job, moved to Charlotte, N.C., and enrolled in a culinary arts program. From there, Heart and Soul Personal Chef Service was born.

 

“It was this really crazy time for a transition,” she said. Her previous job was high-stress with sleepless nights. “My experience and reputation were all I had to lean on.”

 

In the beginning, Lisa was a one-woman show, cooking for three or four families. Demand for her Southern-inspired homemade meals grew so quickly, she hired more chefs and launched a meal delivery service.

 

By 2014, Brooks was in need of additional capital to keep up with the growing demands of her business. But she ran into a big problem: traditional banks wouldn’t approve her.

 

Small business owners are the heart and soul of the new global economy. They hire more people. They strengthen our communities. They drive economic development.

 

Yet, often these small businesses have faced significant challenges accessing the capital they need to grow and thrive. Following the 2008 financial crisis, traditional banks severely restricted access to capital, disproportionately affecting fledgling and medium-sized businesses.

 

That’s why we launched PayPal Working Capital in 2013, a one-of-a-kind financing option for small businesses that provides efficient access to affordable capital to qualified customers [1]. Fast-forward to 2016, and I’m proud to announce that PayPal Working Capital has now provided more than $2 billion USD in funding in the U.S., UK and Australia. In doing so, we have supported more than 90,000 small businesses owners in achieving their dreams by revolutionizing the way that these businesses access capital.

 

Lisa Brooks is one of those small business owners who turned to PayPal Working Capital to help access the capital she needed to grow her business. Four loans later, her company owns a delivery van, she’s launched new marketing campaigns, attended trade shows, and created new lines of meals. She now employs six chefs who prepare meals for families and cater events for hundreds of people.

 

“It doesn’t feel like a loan to me,” Brooks said. “It feels like an investment, except I maintain full equity.”

 

PayPal Working Capital uniquely leverages PayPal technology and data to assess creditworthiness and service loans in ways that traditional lenders can’t. Eligibility is based on merchants’ PayPal history and sales – not a business or personal credit score. And unlike many other financing options, merchants are charged an affordable fixed fee that is clearly displayed upfront as the total cost, with no periodic interest or other fees.

 

Repayment is based upon merchants’ daily sales, meaning merchants pay more when business is strong and less during slower times, which is particularly useful for seasonal businesses. PayPal Working Capital’s funding amounts - ranging from $1,000 to $97,000 – really do fill a void in the traditional banking environment. I’m proud to say that our merchants overwhelmingly love PayPal Working Capital: More than 90% of businesses that pay off a loan or cash advance reapply for funding.

 

And we’re working to make it even easier for merchants to access funds when they need them. Today we are officially launching a new mobile-responsive website, application and servicing experience to ensure merchants have access to the PayPal Working Capital online and on mobile – anywhere, anytime.

 

At PayPal, serving small businesses is at the heart of our mission. We see it as both a responsibility and a privilege to empower entrepreneurs by providing financial services and tools that help their businesses grow and thrive. We know that we can only succeed when our customers do, and I am immensely proud that we are a trusted partner for entrepreneurs who dare to dream big.