Have you been researching getting a PayPal business loan? Or are you interested in easy business funding?
If you will enjoy reading and contributing to the discussion for this post, will you please join us on the YouTube video above and leave a comment there because I read and respond to most comments on YouTube?
If you find anything helpful in this video or funny, will you please leave a like because you will feel great helping other people find it?
I’ve tried several different methods for business funding and loans. The easiest I found so far is the PayPal business loan.
PayPal was suggesting this for me long before I got it. It only took a few minutes and PayPal actually gave me $24,000 within 24 hours of my application, while pre-approving me for up to $45,000 at about 13% interest rate.
What we’ll do in here is walk you through the entire PayPal business loan application process. Because if you’re thinking about this you might want to see everything that’s required to get started.
If you get through the process, you also may need to get on the phone and answer some additional questions.
PayPal has approval amounts that don’t require a bunch of paperwork and then when you go higher than that they need to be underwritten.
For example, for me, I was able to get $24,000 without underwriting and then to get up to $45,000 I needed underwriting and additional documents.
I chose to take the $24,000 because that’s plenty for today and I can always apply and get the underwriting later.
Here’s how we do the PayPal business loan here.
First, before we look into it too much, I think it’s really important you have a very clear plan for how to repay any kind of money you’re going to borrow.
I’ve got a very clear plan to repay mine. What I’m doing with mine is I’m filling up a Dropbox folder with video courses.
I’m paying freelancers to make in-demand video courses.
I’ve got 138 of these video courses right now on in-demand hot topics, including those I’ve filmed and those I’ve paid to have filmed.
And then I’m selling them as video courses.
I’m pretty putting them up on YouTube and other platforms and then they’re available for private label rights in my Uthena Partner program which you can get private label rights and then sell them yourself.
These courses have earned millions of dollars already. And I just switched my business over to focusing completely on this with a huge transition I’ve been through in the last couple of years, and therefore I’ve got the loan money for this.
I figure at 13% interest, with what I’m doing with this, there’s no way I’m likely to lose.
Even if I don’t make the money back and I go bankrupt, I will still have given out a lot of people helpful, valuable education for free for a low price and I’ll have paid people to teach what they love teaching.
Thus, that’s the worst case scenario. Realistically, the loan money will come back in ten-fold over the next several years as it has already done on similar projects.
This can’t be stated often enough. Make sure you have a very clear plan that’s proven and tested to repay whatever you borrow. Because borrowing money, as you can see when we go through this application, it costs you money to borrow money.
If you borrow money and aren’t able to repay you dig yourself into a pretty deep hole.
All right, let’s get started with the actual loan application here.
What I’ll do is show you every single step of it starting with the first page.
The first page is entering your basic information. This is the same for personal. So, you put the same thing for personal as for your business.
You put your basic information on there, your business name, first, last name, phone number, email address, primary loan purpose, and then how you heard about it.
That’s pretty straightforward.
Next page on this is your business location. So the basic info we showed you, the personal info and the business is all pretty much the same. Real straightforward. What’s your address? How do we contact you? Etc.
Then you get into the next level of it. You put in your bank account.
What PayPal does with this loan program is withdraw weekly payments every week until the loan’s complete.
Therefore, you put in the bank account that this will be drawn from right away.
You put in, for me, business bank account, then I can automatically track the payments that go out for that and I can actually split those up or categorize it as interest.
Interest payments for your business, at least in the USA, are tax deductible, which is very important for making sure you reduce your tax liability.
In the repayment, you put your account number, routing number and deposit account.
You also get to choose your day of the week.
I think mine’s on Tuesday. So my loan gets taken out for 52 weeks every Tuesday.
Then the next step of this is to tell us about your business.
This is where you put your business entity type and your total annual business revenue.
Your business entity type if you are self-employed is probably a sole proprietorship if you’re in the USA.
Even if you’ve made a LLC, like I’ve made an LLC, even though I’ve got an LLC it still is a sole proprietorship as far as the IRS is concerned.
And it’s important for your tax information to just apply as a sole proprietorship, because then your personal credit is used. If you try and set it up as an independent entity when it’s not, and they checked just your business credit, then it may not work right.
So make sure you pick the right business entity type. If you’re just an LLC by yourself, that’s probably a sole proprietorship.
For your total annual business revenue, that is before any fees are taken out. So that’s your total gross sales amount.
For example, for me in 2018, that was something like $230,000-ish. That was before I paid any of the $100,000 and something out in expenses. That’s the total revenue.
Then you put your start date of your business in and number of full time employees. If it’s just you, then you just put one.
Then you put your business industry and sub industry. Just do your best to pick the industry and sub industry. There’s no clear guidelines on those that I saw at least.
Next, you go over here and verify your identity and ownership.
This is what you will need to do to actually have them check the loan. Therefore, this is your date of birth, social security number, Federal Tax ID, then whether you are a citizen or not.
On the Federal Tax ID, note that it says if you’re a sole proprietorship or single-owner LLC, you need to use your social security number.
That means they will have it pulled correctly.
Again, if you’ve got an EIN, but you’re just a sole proprietorship you don’t put your EIN in there. That can screw things up based on what I did before.
That’s how you do the verify identity and ownership.
Once you’ve done that last step, then you get over here. For a PayPal business loan, this is what it’ll look like when you’ve submitted your application.
You just leave it running like that and then if you’re me, it’ll come up and look like this.
“Your business is eligible for up to $45,000.”
Now, as I said earlier, at $24,000 I didn’t need underwriting and they gave me that funding within 24 hours of this application with the same terms except just scaled down.
As you’ll notice, if I had borrowed $45,000, the total interest rate over a year would have been $5,941 which is approximately 13% or so interest, which I think is pretty good for a business loan over a year.
As you can see that comes out to a weekly payment of $979.64.
I took about a little over half of this amount. I took $24,000 and my weekly payment is $500 and something a week instead.
Now, I was eligible to have the $45,000 if I was willing to go through underwriting and I didn’t need to do that. I don’t need that much at this time, because I don’t have any interest rates that are higher than 13% I’m paying to borrow this right now.
Therefore, I didn’t go any further with it.
For me before I applied, this is the kind of stuff I wanted to look at, so I’ve went and showed you this here.
You can also scale your loan term up and down.
You can scale your amount up and down. I’m not sure if $24,000 is the same amount for everybody or if it’s based on what you put in. It might be 10% of your business revenue.
For example, if you put in $100,000 business revenue, without underwriting your amount might be $10,000 instead of 24. If yours is a million, yours might be $100,000 instead of $24,000.
You will get a call from the PayPal business loan team and they will talk with you more about the specific conditions of the loan.
After this, you can also submit your bank documents in order to process things faster.
The request is for four months of business checking account bank statements. I went ahead and submitted these right away while I was already in here.
Then the next step you get this.
It says, “Thank you for submitting your request.”
You can call up and request and continue to the portal right here.
Once you continue to the portal, this is the last page you get. You get a phone number here and you get a PayPal business loan application.
It says, “Your application is currently under review.”
Now, when you ask for more than they’ll give you without underwriting, then you’ll see that it looks like this.
But I talked with them on the phone and we were able to skip underwriting review, go straight to sign loan agreement and I received funding within 24 hours for it for what I’ve shown you here.
I’ve given you a walk through of the PayPal business loan information, because this is so easy for me to do and film and this is the kind of thing I would have appreciated some insight on before going through and doing this.
I imagine this has been helpful for you if you’re considering a PayPal business loan.
Again, make sure if you’re going to borrow money, you have a rock solid plan for repaying it.
Some of the worst financial decisions I’ve made in my life have been borrowing money without much of a clear solid plan to pay for it or one that didn’t have a very high potential.
Just borrowing money and hoping you’ll make maybe two times back, that might be good. But having something you can borrow that’s got a good chance to make 10 times back, and then if it doesn’t even do well, it still at least pays for itself, that is ideal.
Thank you very much for watching this.
I love you.
I make tutorials I imagine are helpful for you on YouTube and on Facebook every day. And I imagine when this is helpful you’ll leave a like and subscribe to see more of those here with me, Jerry Banfield.