Paypal working capital loan

[Joe777Cool]

I'm not sure if any of you have seen this or taken advantage of it, but I wanted to tell you about my ecperience. I saw the offer on my Paypal screen, filled out the online paperwork, selected how I would pay it back, and instantly had $1500 in my Paypal account. I now have to pay back $1601 ($101 fee) and they take that off each paypal transaction - 85% to me, 15% to them until the money is paid back in full (they estimate about 4 months). You can choose to pay back as little at 10% at a time to as much at 30%. Whole process literally took me 5 minutes. The money will come in handy stocking up for the holiday rush!

 

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[Peyton Manning]

dave ramsey would say that is stupid

 

[NJcigarman]

Are you talking about Kabbage? I see their ads on eBay. I have never seen a loan offer on eBay.

 

[Joe777Cool]

Are you talking about Kabbage? I see their ads on eBay. I have never seen a loan offer on eBay.

No its directly through Paypal. https://www.paypal.com/webapps/workingcapital/

 

[TSCOM]

dave ramsey would say that is stupid

Yes he would and he's annoyingly self righteous. Making a deal like this won't make anyone poor. Repeatedly doing this will.

 

[Peyton Manning]

No not poor, but paying any interest ( or fees) is giving your money away

 

[Joe777Cool]

No not poor, but paying any interest ( or fees) is giving your money away

Easy to say when you got a pocket full of cash.....gotta have money to make money.

 

[Peyton Manning]

that's true, but if it's not your money you only make money for the one you borrowed from

 

[Joe777Cool]

that's true, but if it's not your money you only make money for the one you borrowed from

Simple math. I borrow $1500. I buy/sell/net $3000. I pay back $1601. $3000-$1601 = $1399 in my pocket. I'm not going to let $101 get in the way of $1399.

 

[TheGoldProspector]

Simple math. I borrow $1500. I buy/sell/net $3000. I pay back $1601. $3000-$1601 = $1399 in my pocket. I'm not going to let $101 get in the way of $1399.

Awesome Joe! Go for it

 

[Peyton Manning]

and the $ 101 is for how long?

 

[Joe777Cool]

and the $ 101 is for how long?

Until I sell $10,674 worth of merchandise.

 

[Peyton Manning]

hmmm you borrow 1500 and don't pay it back untill you sell 10,674??

nah that doesn't sound to good to be true

 

[Joe777Cool]

hmmm you borrow 1500 and don't pay it back untill you sell 10,674??

nah that doesn't sound to good to be true

I think you need to look up "merchant cash advance" before you comment further....

 

[diggummup]

I'm not sure if any of you have seen this or taken advantage of it, but I wanted to tell you about my ecperience. I saw the offer on my Paypal screen, filled out the online paperwork, selected how I would pay it back, and instantly had $1500 in my Paypal account. I now have to pay back $1601 ($101 fee) and they take that off each paypal transaction - 85% to me, 15% to them until the money is paid back in full (they estimate about 4 months). You can choose to pay back as little at 10% at a time to as much at 30%. Whole process literally took me 5 minutes. The money will come in handy stocking up for the holiday rush!

No thanks. I prefer to use my own money. I guess if your really strapped for cash it would be okay, just not for me.

 

[clovis97]

My two cents, if anyone cares:

I keep meeting ebay sellers that are using credit to buy their stuff for resale.

Just last week, there was a guy playing "auction king" at an estate auction that I attended. The guy was buying like crazy, and paying high amounts for the items he was buying.

I struck up a conversation later with him, and he carried on about how much he was making on ebay. Later in the day, he admitted he had run up his CC bill to $8,000 for ebay purchases. "I gotta start working that down" he said.

Even later in the day, when we were chatting about some of his buys, he got nervous and said "I don't know much about this stuff. I usually buy a lot and see what sticks."

It is simply crazy to me. He spent, on one occasion, $300 on three items, and I doubt that he even clears a real profit, that is if he can get $300 back ($360 after BP, CC surcharge, and sales tax.)

The bottom line:

Many people cannot manage credit.
He is giving up 19% in interest on that CC.
You make better buying decisions when you use your own cash to fund your purchases.

 

[Paleo_joe]

I am blown away that someone would spend $8000 on a CC to buy ebay inventory. That is a person with something like a gambling problem, IMHO.

I have learned through bitter experience that you have to look at CASH FLOW rather than profit. To each his own, but if my buying and selling on ebay did not generate enough cash to buy new stuff and put money in my pocket, I'd do something else.

Buying on credit adds a layer of pressure, too. If a substantial number of sellers on ebay are running on credit with pressure to sell at any price, it will hurt prices and in turn hurt sellers.

NOT a good development in the ebay market, IMHO. But I am not a fan of credit in general.

 

[Joe777Cool]

There are people in this word that cant handle credit and there are people in this word that can. We have seen people on this very website that struggle with it. The intent of this post was to share my experience with Paypal's new loan offer, something that I thought some on here may find useful. If you don't think it will be useful for you, thats fine, but a businessperson taking a small loan right before the holiday rush to improve cashflow is very normal and not something that should be looked down upon.

 

[clovis97]

No one is dogging on you. It is an interesting subject.

To each their own, and all of that, I was just sharing my perspective. I have never borrowed a dime in this business, even after working it for 10+ years.

 

[Paleo_joe]

I am sorry if my comments sounded like I was looking down on anyone. There is such a thing as working capital and lines of credit and it is no different than any small business.

I was really reacting to the idea of running up thousands in debt on a credit card. I worked for a company that had to compete with another company who had really low prices because they were running fast and loose on other people's money, and a lot of my friends lost their jobs.