PayPal Working Capital: how it works and what it costs
A cash advance against future PayPal sales, repaid automatically as a slice of every sale, with one fixed fee.
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How it works
PayPal Working Capital is a cash advance, not a loan. PayPal gives you a lump sum against your future PayPal sales, then takes a slice of every sale until the advance and one fixed fee are paid back. First advances run from £1,000 up to £200,000. Repeat customers can get up to £300,000.
You apply inside your PayPal Business account. There is no personal credit check, and the eligibility decision typically takes under a minute. To qualify you need a UK business, a PayPal Business account that has been open at least 90 days, and at least £9,000 in PayPal sales a year. Sole traders qualify, and you do not need to be registered at Companies House.
During the application you choose two things: how much you want, and what percentage of each PayPal sale goes towards repayment. PayPal does not publish the range, but third-party reviews typically put it at 10% to 30%. Those same reviews say a higher repayment percentage usually gets you a lower fixed fee. You see the exact fee before you accept, and it is the only cost. No interest, no late fees, no early repayment fees.
If approved, the money lands in your PayPal balance within minutes. From then on, repayment is automatic. Sell something, and your chosen percentage is held back before the rest reaches your balance. Busy week, you repay more. Quiet week, you repay less.
There is a floor, though. PayPal's own rule is that 'you must pay at least 5% or 10% of your total cash advance amount (cash advance + the fixed fee) every 90 days'. The 5% minimum applies if your advance is estimated to take 12 months or more to repay, 10% if it should clear sooner. If your sales have not covered the minimum, you have to make up the difference yourself.
One honest translation, because a fixed fee hides the real price. PayPal publishes no example fees, so these numbers are ours, not theirs. Imagine a £10,000 advance with a £1,000 fee. If your sales clear it in a year, that is roughly 10% a year. If your sales clear it in six months, the same £1,000 works out at roughly 20% a year, because you had the money for half as long. The faster you repay, the more expensive the advance really was.
What it really costs
PayPal charges one fixed fee and nothing else. Its own words: 'There's just one fixed fee, which will be explained before you complete your application', and 'No periodic interest or hidden fees'. There are no late fees and no early repayment fees. The fee is added to the advance, and that combined total is what your sales pay off.
What PayPal will not tell you before you apply is the price. PayPal publishes no representative example and no fee table. The only way to see your fee is to start an application and read the quote. Before accepting, the numbers that matter are the fee in pounds, the total you will repay, and a rough guess at how many months of PayPal sales that total represents.
Third-party reviews say choosing a higher repayment percentage typically means a lower fixed fee, though PayPal does not publish the mechanics itself. And remember the fee never shrinks. Repay in three months or eighteen, the pounds you hand over are identical, which makes a fast repayment expensive in yearly terms. Our guide to the true cost of merchant cash advances shows how to turn a fixed fee into a yearly rate you can compare.
Who can apply
- UK business
- PayPal Business account open 90 days or more
- At least £9,000 a year in PayPal sales
- Sole traders eligible, no Companies House registration needed
- No personal credit check is run
Good for
- Businesses where most sales already run through PayPal
- Sole traders, since no Companies House registration is needed
- Owners who would struggle with a personal credit check, because PayPal does not run one
- Anyone needing money the same day, funds typically arrive in minutes
Watch out for
- No published pricing at all. You cannot compare the fee against anyone else until you are inside the application.
- The fixed fee never shrinks. Repay early and you pay exactly the same, so a fast repayment means a steep effective yearly cost.
- Minimum repayments still apply in a bad quarter: at least 5% or 10% of the total (advance plus fee) every 90 days, topped up from your own pocket if sales fall short.
- The advance is tied to PayPal. Move to another payment processor and you still owe the full balance.
- It is a cash advance, not a regulated loan, so the protections that come with regulated credit do not apply.
How PayPal Working Capital compares
PayPal Working Capital works if serious money already flows through PayPal, because PayPal sales are the only place it repays from. Its strength is speed for existing PayPal sellers. Its weakness is a price you cannot compare until you are inside the application. If you want a credit line that is not tied to one payment processor, see iwoca. If you like the repay-as-you-sell model but trade through other platforms too, see YouLend.
Put PayPal Working Capital side by side with another lender →
Common questions
Does PayPal Working Capital check my credit score?
No. There is no personal credit check. Eligibility rests on your PayPal account instead: a UK business with a PayPal Business account open at least 90 days and at least £9,000 in annual PayPal sales.
How quickly do I get the money?
The eligibility decision typically takes under a minute. Approved funds arrive in your PayPal balance within minutes, at the time of checking. There is no wait for a bank transfer, the money goes straight into your PayPal account.
Can sole traders get PayPal Working Capital?
Yes. You do not need a limited company or a Companies House registration. You need a UK business, a PayPal Business account open at least 90 days, and £9,000 or more in PayPal sales a year.
Can I repay early and pay less?
You can repay early and there is no early repayment fee, but it will not save you a penny. The fixed fee is set when you accept the advance and does not shrink. Repaying fast just means you paid the same fee for a shorter use of the money, which is a worse deal in yearly terms.
What happens if my PayPal sales dry up?
Repayments track your sales, so a quiet month means smaller repayments. But there is a minimum: at least 5% or 10% of the total (advance plus fee) every 90 days, depending on how long the advance was expected to take. And the debt follows you. If you move to another payment processor, you still owe PayPal the balance.
I used Zettle's cash advance. Where has it gone?
Zettle's old cash advance has been discontinued, and Zettle is now PayPal Point of Sale. PayPal Working Capital is the PayPal-side route now. PayPal also offers a separate product called the PayPal Business Loan, which is a different thing with its own terms.
Regulation and status
PayPal frames Working Capital as a cash advance, not a loan. There is no FCA wording on the product page, and it is not a regulated credit product.
FundSpeed has no partner or affiliate relationship with PayPal and earns nothing if you apply. That never changes what we write. Facts checked on 7 September 2026 against the sources below. Spotted a change? Tell us and we will fix it.