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Maximum charges: 20% Establishment fee and 4% monthly fee (Comparison rate 199.43%) based on $1000 repaid over 6 months. Illustrative example: Loan amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly instalments of $57.60. Maximum charges: 20% Establishment Fee & 4% Monthly Fee. In comparison rate terms, the maximum comparison rate may be as high as 199.43%.
WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. The information on this web page is general information. The information does not take into account your objectives, financial situation or needs. Credit criteria, fees, charges, terms and conditions apply. Products and rates displayed are subject to the individual borrower's credit assessment. Examples only provide an estimate and are used for illustrative purposes only, not an offer for credit. The amount you can borrow, the interest rate and fees you receive along the product you qualify for may vary.
Viva Payday Loans > Paypal Loans

Paypal Loans

Paypal is providing two loan types in Australia, including a working capital loan facility for small businesses and a Pay After Delivery consumer finance service. Under the working capital loan service, sellers can borrow as much as 25% of their previous year’s revenue to finance their business, as long as this amount is under $97,000. As for Pay After Delivery, customers have the option to borrow interest-free for a 21-day period to make purchases. 

What Are The Costs Of Paypal’s Credit Services?

Working Capital Loans

There is only one fixed fee that is charged by Paypal when a working capital loan is sought. This fee is determined by taking into consideration the amount being borrowed, the percentage of future sales that are being committed to paying off the loan, and the borrower’s selling history through the Paypal payment service. Based on these factors, this fixed fee is quoted to the borrower in the loan agreement. 

The following table illustrates the different fees you can expect to pay on a working capital loan from Paypal.

Annual Paypal SalesLoan AmountRepayment percentageFixed FeeTotal repaid

Tip: Loan repayments are defined as a percentage of each sale that the seller expects to make by using Paypal. Apart from the initial fixed charge, no additional charges are applied on the loan. 

Pay After Delivery

Pay After Delivery Loans are completely free of cost, except for any transaction charges that may be incurred. 

Key Features

Working Capital Loans

The working capital loan provided by Paypal has the following features:

  1. Only a single fixed fee 

Unlike many other lenders, the working capital loan by Paypal has only a single fee that is charged at the beginning of the loan term. This fee is determined based upon three factors, including the borrowed amount, the committed future sales percentage, and sales history maintained with Paypal. 

  1. Loan terms are flexible

Borrowers are not limited to repaying the loan within a specific time. The loan term can extend to a few years or maybe as short as a couple of months, depending upon the percentage of future sales committed to making loan repayments. However, within the first 90 days, at least 5% of the total loan must be repaid if the total loan is expected to be paid off after 1 year, or 10% if it would take less than a year for the entire loan obligation to be honored.

  1. Early repayments are allowed and free

The lender does not place additional charges in case the borrower decides to make early repayments against the outstanding loan balance. 

  1. Borrowing amount is flexible

Sellers can borrow any figure, up to 35% of their total sales made in the prior 1 year. However, this amount must be lower than $150,000 for the first two loans, after which subsequent loans can go up to $200,000 in value.

  1. Borrowers can only have one loan outstanding at a single time

A new working capital loan can only be sought once an existing one has been completely repaid. 

  1. Applications are processed quickly

Paypal’s loan application processing times are some of the fastest in the industry. The company processes applications in around five minutes since all of the information it requires is already available to it.

  1. Funds are dispersed in under a minute

As soon as Paypal gives approval for a loan, funds are made available to the borrower in under a minute. 

Pay After Delivery

Paypal’s Pay After Delivery service has the following features:

  1. Available to a limited number of customers 

Not everyone can sign up for this service yet, as Paypal has provided access to only selected customers. 

  1. Available at many locations across Australia

Pay After Delivery can be used to borrow instantly at any retailer that accepts Paypal as a payment method. 

  1. No fees

The service is being provided to Paypal users free of cost. 

Pros and Cons of Paypal Loans

Working Capital Loans

Paypal’s working capital lending services have the following pros:

  1. Extremely fast processing time

Loans are processed in around five minutes and, once approved, funds are disbursed in under a minute. These are some of the fastest processing times in the credit industry. 

  1. No recurring fees

Borrowers only need to pay a one-time fee at the beginning of the loan term. 

  1. Flexibility in the loan repayment schedule

Borrowers don’t have the obligation to repay the loan within a specific amount of time. They only need to commit a certain percentage of future sales against loan repayments. 

These cons can be associated with Paypal’s working capital services:

  1. Difficult to assess costs before applying

Since Paypal uses a few factors to determine the initial cost to be charged to the borrower, it only specifies the cost after the borrower has applied for it. This might not be ideal for borrowers trying to compared different loan options. 

  1. Cannot borrow more than once at a time

Borrowers must completely repay one loan before another can be bought

  1. Loan amount limited to 35% of past one year’s sales

Those looking for a bigger loan than this may need to consider other options. 

  1. Repayments need to be made through Paypal sales

Other sales would not be counted in the loan agreement. 

Pay After Delivery 

The following pros are associated with the Pay After Delivery service by Paypal:

  1. Instant approval

The loan is automatically approved against the value of the items being purchased.

  1. Option to repay early

Borrowers can make early repayments without any extra charges. 

  1. No fees

The Pay After Delivery service is completely free of cost. 

These are the cons of Paypal’s Pay After Delivery service:

  1. Strict eligibility criteria

Not all Paypal users qualify for this service. In fact, it is available to select users of Paypal at this time. 

  1. Payment term is set to 21 days after a purchase has been made
  2. The loan cannot be redeemed in cash. It must be taken out against the purchase of an item. 


Why Am I approved for a smaller working capital loan than I applied for?

Paypal also considers the newness of a business and any impact of seasonality on its revenue as key factors while evaluating any working capital loan application. 

Can more than one working capital loans be withdrawn at the same time?

No, borrowers must completely repay an outstanding working capital loan before applying for a new one. 

Is the Pay After Delivery service completely free?

Yes, it is a free service provided by Paypal, although the usual transaction fees still apply. 

Why is the Pay After Delivery service not available to me?

Paypal has launched the service only for a specific group of users so far. 

Eligibility Criteria

For working capital loans, the following eligibility criteria must be met. 

  1. A business or premier account with Paypal maintained for more than 3 months with a good standing
  2. At least $20,000 or $15,000 in revenue from sales over the past 12 months from premier or business account, respectively. 

For Pay After Delivery service, Paypal has the following eligibility criteria.

  1. The Paypal account of the borrower must be older than 3 months
  2. The borrower must have connected a validated bank account and a debit/credit card to their Paypal wallet.