Online payment services have taken to lending to small businesses through working capital loans, but did you know that e-commerce payments giant PayPal offers a more traditional flavor of lending as well?

A reader sent us a marketing email that PayPal sent to online sellers touting PayPal Working Capital and PayPal Business Loans. “I see there is another product besides working capital. It allows for weekly payments instead of a discount per sale, ”the reader wrote.

The email linked to a landing page that touted the benefits of PayPal’s two loan products: “Quick access to competitively priced cash can be a game-changer for your business. Whether you need help filling inventory or filling a cash flow shortage, PayPal can help you access the financing you need to move your business plans forward.

The landing page then described the two offers as follows:

PayPal business loan
A fixed term loan based on a complete picture of your business with a predictable weekly payment. Processing payments with PayPal is optional.

PayPal Working Capital
Based primarily on your PayPal Business account, automatically repay the loan with a percentage of PayPal sales.2 No credit check required.

The EcommerceBytes reader also noted that the email read, “Processing payments with PayPal is optional,” which they said was “likely intended for payments handled by eBay.”

As we reported in this post, PayPal has told sellers that they will not comply with their working capital provisions if they participate in payments handled by eBay, while eBay has reportedly encouraged these sellers to repay their PayPal loans by turning to rival Square. Capital, with which eBay has partnered.

It seems that if eBay and PayPal remain dependent on each other, they also become rivals.

Kabbage made working capital loans popular for online merchants, and there are plenty of other alternatives, including Square and Payability. And Amazon offers its own loan service for its sellers.

As a reminder, PayPal also lends to buyers through PayPal Credit. It is currently promote an offer an interest-free credit on purchases of $ 99 or more if paid in full within 6 months “when you checkout with PayPal and choose PayPal Credit,” subject to credit approval.

Ina Steiner

Ina Steiner

Ina Steiner is co-founder and editor of EcommerceBytes and has worked in e-commerce since 1999. She is a widely cited authority on market selling and is the author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book “Blogging Heroes” (Wiley 2008). Follow her on Twitter at @ecommercebytes and send topical tips to [email protected]

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