If your business is doing well and you want to expand operations but lack money, there are actually more options to gain working capital available now than ever before. Certain online companies like, for example, PayPal, have programs that will loan you funds if they have confidence in your business model. You must, however, meet some basic criteria to get approved for a PayPal loan. If your profile fails to meet these criteria you will be unable to get assistance from them for any or all of the following reasons:

1- The Automation Issue

PayPal uses an automatic algorithm to determine credit worthiness. The algorithm, like everything else, can make errors.  Errors often happen when PayPal’s  number crunching system has operated for an extended period of time under excessive load conditions. Then it is likely the algorithm and not a human working for PayPal that denies your request for working capital, despite your being a qualified applicant.

If you think your business model is strong but you’ve been rejected start doing some research. Look, for example, at PayPal working capital reviews to find out alternative paths to get around the negative automatic decision. Having a working knowledge of how the algorithm works helps to a great extent because, as a knowledgeable user, you can call PayPal support staff and alert them to any problem  you’ve identified. This helps you engage in a beneficial discussion with a support person and can result in a favorable loan decision.

2- Low Sales

If your sale volume is low compared to the money you request you’ll be unlikely to get any financial help. Lenders are willing to lend money based on your ability to repay. If they see you’re likely to have trouble meeting your loan obligation they won’t help you.

3- High PayPal sales returns

PayPal doesn’t like it when they see high volume sales returns. Of course not all returns are due to bad product and PayPal does offer assistance to sellers who experience the occasional bad cycle of returns. However, they are far less likely to assist you if you have a track record of high product returns or requests for service refunds.

PayPal keeps track of business outcomes to determine your viability as a loan recipient. The decision to extend working capital to you will be based on your performance history in successfully marketing a product or service. And that’s the bottom line.

Shift Frequency Publication – Educational Material © 2018