What is PayPal Business Loan for Small Businesses in Canada?
In last two decades, PayPal has helped over a quarter of a million Canadian businesses from e-commerce by delivering solutions that meet their evolving needs. Earlier Paypal provided marketplace sellers with a secure way to accept electronic payments from buyers. It also helped small businesses across Canada access digital tools and payments that opened their doors to global customers. From digital invoices and getting paid to open up online stores and offering mobile payment solutions—Paypal helped small business owners achieve their dreams. Paypal has introduced PayPal Business Loan. This enables small business owners to easily access loans of $5,000 to $100,000 at competitive prices.
- Small business funding in as fast as 1 to 2 business days.
- PayPal Business Loan makes financing straightforward and simple.
- Fast access to cash
- You can check eligibility in minutes online.
- Simply complete application, and if approved, funds are transferred as fast as 1 to 2 business days.
- Choose the loan amount and term (13 to 52 weeks based on loan amount) that fit your business needs.
- Hassle-free repayment
- Predictable weekly payments will be made automatically from your bank account so there are no monthly bills to remember.
Note there is no fee deducted upfront from the loan proceeds. Instead, the single fixed fee is paid over the life of the loan. In addition to the fixed fee (Total Interest Charge) for the loan, the only other cost is a $20 Returned Item Fee that is only assessed if a payment is returned.
How to apply for PayPal Business Loan for Small Businesses in Canada?
- Before you begin first check your business’s eligibility in minutes. Fill out the short online questionnaire.
- Next customize your loan. Choose your loan amount and term within your business’s estimated eligibility range.
- Your eligibility will be determined immediately and if any other documents are needed.
- If approved, you will be prompted to complete and return your signed contract. After your bank information is confirmed, your loan will be securely transferred from the lender into your business’s bank account.
You must complete a 5-10 minute online questionnaire to
determine your business’s eligibility. If you have any questions, call at
1-888-357-4008 between 9 a.m. and 6 p.m ET Monday – Friday. Completing the
questionnaire will assess your business’s eligibility, allow you to review
estimated offers if eligible, and will not impact your credit score.
Once you select your desired terms, you will, if approved, be prompted to
download, print, complete, and return your signed contract. Your bank
information will be confirmed so that payments can be debited weekly from your
business’s bank account.
If approved, the funds are transferred directly into your business’s bank account. Funding can be as fast as 1-2 business days if documents have been submitted and the loan is approved by 3:30 p.m. ET, Monday through Friday (excluding bank holidays).
Your PayPal Business Loan has weekly payments that are withdrawn from your business’s bank account automatically. You provide account information and select your preferred payment day when you sign the loan contract. Automatic repayment will occur weekly and you will not be able to adjust how often you pay. You will be able to choose the day of the week payment is made.
The loan can be paid off at any time, but the full fee based on the original term of the loan is applied and is due at the time of payoff.
Canadian Federation of Independent Business (CFIB) report revealed that the most common sources of small business financing are personal funds, equity and other assets, at 49%. What’s concerning is the percentage (30%) of small business owners that have had to resort to credit cards as a source of capital. The use of credit cards suggests that small business needs are not being met by traditional sources of financing especially among the smallest and youngest businesses, which banks view as high risk. Some small business owners are left with no other choice than to rely on higher cost borrowing options to maintain a steady cash flow and grow. Personal financing (e.g. personal loan, line of credit) through a bank is used by one in five business owners. Other alternative sources used by small business owners include leasing (14%), personal loans from friends and family (13%), commercial mortgages (7%), Business Development Bank of Canada (6%), and venture capital (3%).
Small businesses often need a small loan to help manage cash flow shortages and they prefer it to be quick. The PayPal Business Loan program can provide funding from $5,000 – $100,000 for small businesses looking for quick decision-making and settlement. Approved applicants get the money in their business’ bank account in as fast as one or two business days.
