Difference Between PayPal Loanbuilder and Working Capital

Many companies offer a variety of financial services ranging from loans to investment. PayPal, one of the largest financial technology companies, also provides financial services.


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One of the financial services is Paypal Loanbuilder that’s more focused on business loans. On the other hand, Working Capital works as a merchant cash advance.  They do seem similar but are very different based on features and functionality. 

Paypal Loanbuilder vs Working Capital

The difference between Paypal Loanbuilder and Working Capital is that Paypal Loanbuilder offers traditional business term loans, while Working capital provides additional working capital for business. There’s also a significant difference in the repayment structure.  These services have similarities with other services such as Paypal Loanbuilder that offers services similar to  Business term loans and Working capital as merchant advance cash. 

Paypal Loanbuilder vs Working Capital

Paypal Loanbuilder is a financial service offered by Paypal that resembles traditional business loans. Although, an automatic weekly payment is paid by the borrower, rather than a monthly payment.

However, there’s no requirement of using PayPal for processing payments, Unlike Paypal Working Capital. Also, there’s a single fixed with no origination fee and no early repayment fees.

PayPal Working Capital is also a financial service provided by PayPal that is similar to the merchant cash advance program. It offers additional working capital to the business.

Although, the payment should be done with the use of PayPal only. However, the debt is paid off by a percentage of sales through PayPal’s account. 

Comparison Table

Parameters of Comparison PayPal LoanbuilderWorking Capital 
SimilarityPayPal Loanbuilder is similar to a traditional business-term loan. PayPal’s Working capital is similar to Merchant Cash advance. 
Provides It provides a business-term loan. So it provides additional capital for the business.
Amount An amount of 500,000USD in terms of up to 52 weeks can be borrowed through PayPal Loanbuilder. An amount of 125,000USD in terms of up to 52 weeks can be borrowed through PayPal Working Capital 
Repayment Payment is made by automatic weekly payment. A percentage of the amount is deducted from each sale. 
Funding Funding is done is takes time. Funding is done in few minutes. 
Requirement of Paypal for processing payments There’s no necessity of using PayPal for processing payments in PayPal Loanbuilder. There’s a necessity of using PayPal for processing payments in PayPal Working Capital. 
Flexible Payment There’s no option of flexible payment. In contrast, there’s an option of flexible payment. 
Credit Score The credit score determines the amount that can be borrowed in PayPal Loanbuilder. There’s no need for a credit check. 

What is PayPal Loanbuilder?

PayPal’s one of the financial services, PayPal Loanbuilder is a traditional type of business term loan. It was earlier known as PayPal Business Loans. But, today they call it PayPal Loanbuilder.

The similarity of the service is with Business term loans. Although, the debtor can make automatic weekly payments instead of monthly payments. The maximum amount that can be borrowed is 500,000USD in terms of up to 52 weeks. 

The service creates a perfect loan for your business according to your preference, tailor terms, clear pricing, and fast access to cash.

One of the advantages of using Paypal Loanbuilder is that it doesn’t require Paypal for processing payments, unlike Working capital. Moreover, there’s a single fixed fee with no origination fee and no early repayment fees. 

To apply for PayPal Loanbuilder, you need to fulfill their requirements including total annual revenue, business start date, owner’s social security number, Business Tax Id number, and four months of business bank statements.

Business bank statements are only needed if you don’t use Paypal to process payments. 

Another important requirement, businesses should have a Paypal Business account. Although, it’s not necessary to use it to process the payments.

Business finances and credit score are very important as they are considered for amount, cost, terms, and weekly payment. 

What is PayPal Working Capital?

PayPal Working Capital, which is comparable to Merchant Cash Advance, is another financial service provided by PayPal. It offers additional working capital for business. They have their pros and cons.

However, the amount that can be borrowed is up to 35% of the annual sales with a limit of 125,000USD and terms up to 18 months. Annual sales of the business are conducted by PayPal that sets the limit and other factors. 

The repayment is based on the percentage of daily sales towards the debtor’s PayPal account. Therefore, the use of a PayPal account is necessary for payment processing in all stages.

Moreover, the minimum payment is required after 90 days. PayPal Working Capital gives options of flexible payment, one affordable fixed fee, no credit check, and funding in minutes. 

It is based on Paypal’s sales history, so the preferred amount required for business is offered. There’s no need for collateral and a credit check.

And the cost of the loan is billed with one fixed fee and no other additional fees. Even the application and funding process has very little time as compared to other services. 

The requirement for the services is very simple that includes contact details, birth date, and social security number of primary business owners and managers.

Or you can directly apply for PayPal Working capital with a PayPal Business account with every filled information that includes past three months records of business finances. 

Main Differences Between PayPal Loanbuilder and Working Capital

PayPal’s financial services; PayPal Loanbuilder and Working Capital that seem similar but are very different from purpose to repayment structure. Although, both aid the finances of the businesses. 

But, other utilities and benefits differ from each other. 

  1. PayPal Loanbuilder is a service that provides business-term loans, and, on the other hand, PayPal Working Capital offers additional capital for the business. 
  2. In PayPal Loanbuilder, for processing payment, it doesn’t require PayPal, unlike PayPal Working Capital. 
  3. There’s an automatic weekly repayment in PayPal Loanbuilder. In contrast, there’s a percentage of sales deducted from each sale in PayPal Working Capital. 
  4. Repayment in Paypal Loanbuilder should be done in 52 weeks, while for PayPal Working Capital should be done in 18 months. 
  5. An amount of 500,000USD can be borrowed from PayPal Loanbuilder, and an amount of 125,000USD can be borrowed with PayPal Working Capital.  
  6. Funding in PayPal Working Capital is done in few minutes, unlike PayPal Loanbuilder. 


  1. https://www.sciencedirect.com/science/article/pii/S0267364904000512
  2. https://search.proquest.com/openview/6d4e24deb12fd7bacb549bdb23b9cac7/1?pq-origsite=gscholar&cbl=43721
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