How To Use Paypal For Cash
I use Paypal to get cash. Therefore Its sole purpose is to process and loan money.
It’s not a Bank
The advantage of Paypal is it’s not a bank. Therefore it doesn’t come under banking regulations. So this means they can market their products and services and charge higher rates for processing. Therefore the advantage is speed over the banks.
Speed is what counts
Speed in the Fintech game is what counts and Paypal plays that game to the hilt. So if you need a loan you can get it in under 10 seconds. Because their software is designed to process your companies activities without using your credit.
My loans come in the $50,000 to $100,000 range. Therefore Paypal Capital money is the result of my sales through eBay and I have 7 loans over the past few years. So eBay has dumped Paypal which they owned and replaced it with another Fintech.
Therefore the future of Paypal capital is at risk since my sales come from eBay. However, I will keep you posted on how it all plays out when I return to see if Paypal Capital still has a connection with my eBay sales. Or if they can loan money based on our past loan experience.
The new competition for Paypal is eBay, Amazon, Apple and soon to be Google. Therefore every one that processes a large amount of capital through their platforms, including Walmart is in the game to compete with the banks.
Walmart loans money to its Market Place sellers through Goldman Sachs. So eBay Seller Capital can loan you up to $500,000 through lending Point if you sell products on eBay’s platform which I do. Therefore I will be checking out how much and report back on how it works. Goldman Sachs also handles Amazon Lending Program.
You need a business
I have loaned about $1,000,000 through Paypal over the years at a cost of about 8%. This money was paid back over 2 years so the upfront fee is fixed. Therefore the longer I stretch out my payback the lower the rate I pay. In addition, Paypal will come to me every 90 days if my sales are not enough to match the percentage I pay them.
Therefore before I take the money I have the option to pay more interest and payback less daily in a shorter time, or pay a higher rate and make fewer payments over a longer time. So this is called “the cost of money”.
Therefore my business sales are how Paypal, eBay, Amazon, and Walmart can measure my ability to make the payback.
Loaning money has become fast and easy. The pain of going through a bank I have millions with no longer exists. However, speed does have a cost. Therefore if I can loan from the SBA (small business association) I can get 30-year money at 3.5%. So it takes longer but it’s well worth the effort.
I have a good solid cash flow business. So if you’re looking for money then you’ll need that to move forward with these people.
Top 5 reason for using Paypal
- Speed. I get processed in seconds instead of days or weeks.
- They don’t use my personal credit.
- Flexible payback terms
- Lower cost than other Fintechs I have found
- They protect me as a seller and buyer
- Top-notch customer service you can talk with.
As a customer, Paypal will protect me if I buy something if it’s not as described. Therefore it’s an insurance policy against would-be scammers. And the seller of the product has to pay the 3% fee, not me.
Venmo and Xoom
Venmo I use to send money to my children. Xoom I use to transfer funds overseas to my outsourced team. So Paypal not only processed my business transaction, insures against my losses, but also provides quick and easy money transfers. Venmo cost me nothing and the kids get the money in their bank the next business day.
All these new players in the game are good for you and me. The more people in the game the lower the rates, cost of money, the better the terms, payback.
I have been with Paypal for years now. Because they processed all my eBay transactions. So now that eBay has moved them out, I am interested in seeing if Paypal Capital will still loan out money.
The update will be posted on a future blog assuming it works for me. Until then, check them out and give them a try if you’re looking for the above-mentioned benefits.
Mike Addis, Carlsbad, California, All rights reserved.