By Oliver Smith on Friday 31 May 2019
The payments giant says it's now lending "more than $1bn" per quarter.
Since PayPal launched its Working Capital lending initiative in 2013, the payments giant has now lent over $10bn to 225,000 small businesses in the US, UK, Australia, Germany, and Mexico.
“Demand has never been in shortage.”
At this pace PayPal could hit $20bn in a little over two years.
The company didn’t reveal a geographic breakdown of which markets are driving the growth, but pointed out that in the US Small Business Administration loans typically take 90 days to approve.
“PayPal business financing programs can provide funding from $1,000 - $500,000 for small businesses looking for both quick decision-making and immediate usage as an application decision that usually occurs within minutes or hours which, if approved, allows the business to start using the funds almost immediately,” added Esch.
From its loan applications, the top business uses for these loans are purchasing inventory (58%), purchasing equipment (30%), marketing (28%) and managing cashflow (23%).