The PayPal Business Loan launches in Canada for small business owners

loan,loans,business,small-business,The PayPal Business Loan launches in Canada for small business owners

 For the first time in Canada, PayPal is announcing PayPal Business Loans, enabling small business owners to easily get loans between $ 5,000 and $ 100,000 at competitive prices.

PayPal Business Loan launches in Canada for small business
PayPal Business Loan launches in Canada for small business

With PayPal Business Loan, small business owners can get loans quickly and easily with the ability to customize the loan amount and repayment timeline. (CNW Group / PayPal Canada)

With PayPal Business Loan, small business owners can get loans quickly and easily with the ability to customize the loan amount and repayment timeline. (CNW Group / PayPal Canada)

In the run-up to Small Business Week, and ahead of the busy holiday shopping period, select PayPal merchants across Canada are being invited to apply for a PayPal business loan. To apply, business owners just need to fill out a simple online form. Applicants will be notified if they are approved within minutes, and if approved, within one to two business days funds will be transferred to the applicant's business bank account, ii. Allow to. , Manage cash flow, or other needs of their business.

"Applying for a traditional loan takes time and is not always convenient for small business owners," said Paul Parisi, President of PayPal Canada. "We are launching PayPal business loans to provide our merchants with easy access to financing, which they desperately need. We look forward to helping more small business owners achieve their dreams of developing locally and globally."

Lack of credit history, high barriers to borrowing from traditional lenders, and long waits for funding are three challenges that small businesses seek to secure through traditional loans. About one in five entrepreneurs say it is challenging to get the funding they need from a traditional financial institution. iii

A 2018 study found that Canadians have a real need for faster and better financing solutions. The study found that alternative loans continued to grow at 24 percent in 2018 - down from just four percent in 2013. At the same time, the alternative lending market in Canada grew 159 percent between 2016 and 2017. iv

PayPal business loan borrowers have shared feedback that the process involves much less hassle and stress than traditional bank loans. He also said that he appreciated knowing the total cost of the loan in advance. Before accepting a loan, the merchant is informed of the fixed fee. There are no origin fees, late payment fees, early payment fees, application fees or any other hidden fees. Loan applicants can request their loan amount ($ 5,000 - $ 100,000) and term (13-52 weeks). Weekly payments are then withdrawn from their business bank account. Borrowers have said that the automatic weekly repayment plan is simple and predictable.

Since launching Business Financing Solutions almost six years ago, PayPal has funded more than $ 10 billion to a quarter of the nearly one million business owners worldwide. Merchants who have taken and grown PayPal business loans in the U.S. have experienced an average growth of 21 percent, with 88 percent of businesses seeing an increase in revenue in the first three months after accepting the loan. The most common uses of loans are cash flow management (44%), inventory purchases (37%) and marketing investments (31%).

In Canada, PayPal business loans are currently limited to select PayPal merchants who are invited to apply. The company expects the program to become more widely available to Canadian PayPal business account holders by 2020. In addition to Canada, PayPal financing products are available in the US, UK, Australia, Germany and Mexico (with partner Confio).

About PayPal

PayPal has been at the forefront of the digital payments revolution for over 20 years. Taking advantage of technology to make financial services and commerce more convenient, affordable and secure, the PayPal platform is empowering more than 286 million customers and merchants in more than 200 markets to join and grow in the global economy. For more information, visit paypal.com.

[i] PayPal Business Loan Solutions is not currently available in the provinces of Quebec and Saskatchewan and the Yukon and Nunavut regions.

[ii] PayPal Canada Company in your business bank account as quickly as the next business day and within 1-2 business days of loan approval, if 3:30 p.m. Funds will be transferred if approved earlier. Eastern Time (excluding bank holidays)

[iii] Government of Canada, 'More Help for Entrepreneurs', 2019

[iv] IBIS World, BDC, Cambridge Center for Alternative Finance and Ivey Business School at Western University

[v] PayPal Business Loan Impact Survey, Q2 2018

[vi] PayPal Business Loan Impact Survey, Q2 2018

Source PayPal Canada

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