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An Open Letter to PayPal Working Capital Customers

Product PayPal Innovation Business Lending

To our PayPal Working Capital customers who sell on eBay,

We’re reaching out to thank you for your business and to make sure you know that PayPal will continue to be here to support small business. We hope this email finds you and your loved ones healthy and safe in these difficult times.

We know the past several months have been like none other for you, your families, and your businesses. The pandemic and resulting economic impact have been longer lasting than any of us could have imagined or planned for, and we all look forward to the day when we return to some semblance of normalcy. As a current PayPal Working Capital customer who sells on eBay, we want you to be aware of our plans for PayPal Working Capital.

During the height of the pandemic, we halted your automatic sales-based repayments for your PayPal Working Capital loan to help you sustain your business. And while you always had 90 days to make your minimum payments, we knew that it was necessary to offer additional time to those merchants that needed it – and we were proud to have done so. If your business is still facing significant hardship and you need more flexibility in paying your loan, we want to help. Please contact us.

PayPal and eBay have had a long history together and were a single company until five years ago. This five-year milestone allows eBay to migrate more of its merchants to its managed payments program. This migration will unfortunately interrupt your ability to make sales-based repayments on your PayPal Working Capital loan from your eBay sales and may also impact future PayPal Working Capital loan offers available to you. Once eBay moves you to managed payments, PayPal will no longer have access to your business’s eBay sales for purposes of automatic loan payments on your PayPal Working Capital loan or visibility into those sales on behalf of the lender to assess your business’s future loan eligibility. However, we understand that you may be required to migrate to eBay managed payments and need new solutions from PayPal to allow you to not only repay your loan efficiently, but also remain eligible to apply for future business financing through PayPal when you need it.

When PayPal brought our PayPal Working Capital offering to market in 2013, business owners welcomed it as a revolutionary financing solution, unlike anything available at that time. Seven years later, we continue to enable access to business financing that our customers appreciate for its fair, transparent pricing, simplicity, and speed of access to capital. Currently, we’re developing the next generation of PayPal Working Capital – a set of new, innovative features that will serve your needs as your business continues to evolve. These new features will address the rapidly evolving commerce ecosystem and provide support for merchants who choose to sell goods across a variety of platforms and marketplaces. We are excited about what the future holds for PayPal Working Capital and will share more details as we roll out new features in the coming months.

In the meantime, if you think your PayPal sales may not be enough to meet the minimum payment required under the terms of your loan, please remember that you have the option to make payments from the funds in your PayPal balance or from any verified bank account in your PayPal wallet. You can check your minimum payment requirement by logging into your PayPal Working Capital dashboard. From there, you can schedule one or more  payments by clicking “Make a Payment” and following the instructions provided.

We are working hard to ensure you feel supported through this period of transition and appreciate your business. Thank you.

Doug Bland Signature

Doug Bland
Senior Vice President, Global Credit
PayPal

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