90% of PayPal Merchant Advances and Business Loans Are Performing On Pace

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PayPal LoanBuilderAs of June 30, 90.6% of PayPal’s merchant advances and business loans were performing within the original expected repayment period, the company disclosed this week. That equated to $1.27 billion worth of deals. Only 4.2% of their merchants were more than 90 days behind their expected pace.

PayPal had $1.4 billion in outstanding merchant loans, advances, interest and fees receivables.

Swift business loans are charged off when they are more than 180 days past due. The Working Capital products (which can be loans or advances) are charged off when the merchant is 180 days past the company’s original expectations and no payment has been made in the last 60 days OR when the merchant is 360 days beyond the company’s original expectation.

Swift Business loans are generally repayable over 3-12 months. Working Capital advances are generally expected to be satisfied within 9-12 months.

After PayPal acquired Swift Financial, the company began marketing itself to small businesses as LoanBuilder. A flyer obtained by deBanked showed that it was being marketed with loan amounts of $5,000 to $500,000 that could be funded in as quick as 1 business day.

Last modified: July 29, 2018
Sean Murray


Category: Business Lending, Industry News, merchant cash advance


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