PayPal starts SME funding in France and Netherlands
PayPal has launched its funding solution for SMEs, called PayPal Funding Pro, in two new European markets: France and the Netherlands. The solution gives SMEs quick and easy access to growth capital. Online sellers can find it in the PayPal Commerce Platform.
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Sellers with a PayPal business account in France and the Netherlands can now use the company’s new funding solution to get access to growth capital. New customers can apply for a loan of up to 130.000 euros, while existing customers can get up to 160.000 euros in credit.
Solution is tailored to the seller
The loan that a business owner receives depends on their PayPal volume of sales. After applying for a loan, PayPal is able to perform a quick credit check and makes a decision within minutes. It then provides the financing.
‘PayPal performs a quick credit check and makes a decision within minutes.’
The payment solution company says that its solution promotes responsible lending, because repayments are tailored to the sales volume of the business. The SME automatically pays a repayment percentage of 10 to 30 percent per sale, without a fixed term.
‘Democratize accessibility to funding’
To apply for the funding solution, the SME needs to have an annual PayPal turnover of at least 12.000 euros. Additionally, their PayPal business account needs to be at least 3 months old.
‘PayPal Funding Pro enables customers to meet their development challenges.’
“This solution is in line with our desire to democratize small and medium-sized businesses’ access to opportunities previously reserved for larger companies. Based on the strong relationship that PayPal maintains with its professional customers, PayPal Funding Pro enables its customers to meet their development challenges”, said Joachim Goyvaerts, director PayPal Benelux and Ireland.
Solution already active in Europe
PayPal’s financing solution was already active in four other markets: the US, Australia, the United Kingdom and Germany. According to the company, after the solution launched in Germany in 2018, it already funded over 250 million euros to over 8.000 SMEs. Across Europe, the company has financed over 3.4 billion euros with more than 230.000 approved loans.