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PayPal Working Capital Against Standard Business Credit Card

Posted by : Premraj | Posted on : Tuesday, January 2, 2018


A person must know all the pros, cons, fees and a lot of details,etc about their PayPal working capital and business credit card to decide rationally that which one of them is better for their business and how it can help it to grow and expand.

Credit Cheque Approval

So, the first glaring difference in PayPal credit card and business credit card is the credit cheque to get approved for one of these two options. For business credit card is they will need your credit history, your payment history,and your personal history. So, you have to make them sure that you have a good payment history. Their decision mainly depends on this. While in case of PayPal their decision is mainly based on your sales history. They only see how good your sales history is. That’s how they fund your account or your loan.

Now, for PayPal, they get few details of your personal information like your email,etc. They will approve you for a set amount of money,and it is instantly available right in your PayPal account,and you can use your PayPal debit to spend, you can use it to buy from different online retailers. With a business credit card, however, they approve it to you over the phone or online they will mail you’re your credit card. It will take acouple of days and even up to a week.

Amount of Money That You Can Borrow

Business credit card will base the amount that you get to borrow of your credit history. If you have a lot of credit, then they might give you only 1000 bucks. If you have little credit, then they will give you even less. While PayPal will give you credit between 10 and 15% of your annual sales. So, you may not have a lot of credit history.


A lot of big credit card companies’ offer 6 or 12-monthinterest-free introductory rates. So, you can save 6 to 12 months of interest. This is great. But, once this period is over, based on your credit history you will get aninterested rate anywhere between 9% and upto 20%. For credit card, you have to pay back monthly,and the interest charge will be included in every month’s balance. Depending on how much you pay back from your credit card and how much you leave on it will determine how much interest fee you will pay. All this will decide for you will end up more or less expensive than the PayPal fees.

With PayPal, you have to pay afee for one time only. So, if you borrow 5,000$, the fee would be almost between 8% to 20%. So, the amount of money you borrowed, you have to pay back for each sale of yours on a daily basis. They will take a percent of your sale. You can determine how much you want to give them. The faster you pay back means, the higher rates you have to pay them daily.

Cash Back Perks

Credit cards will give you cash back perks. A lot of business owners take advantage of this. They charge all of their materials, supplies and all of their shipping as much as possible on the credit card to get a few percent of cash back which can add up to make a lot of money over the course of a year.

PayPal, on the other hand, does not give you perks on borrowing the money. However, if you leave the money in PayPal and you use the PayPal debit card as acredit when you are buying then you will get 1% back.

Credit Billing Help

The credit card helps you billing your credit and with your business and your credit but PayPal does not check your credit,and they are not going to help to bill your credit. However, if you fail to pay them, they will come after you and will bang your credit.

Additional Working Capital

As you pay business card every month and build a good credit history. They will give you an amount of credit. The same id with PayPal, as you pay off your working capital, you can reapply and get another working capital. You cannot take another in the middle of previous one. You’re your credit card when you pay half way and you are left with half amount with thelow-interest rate.

By looking closely at these two options, you can easily make a wise decision about what you should buy for yourself and what you shouldn’t dependon your needs and interests.

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