The San Francisco-based company has made the PayPal Business Loan for small business owners available in Canada. This isn’t the first time PayPal has launched financing products outside of the U.S. The company also offers loans in the U.K., Australia, Germany, and Mexico.
With this launch, Canada-based small business owners can access from $5,000 to $100,000 in working capital at competitive borrowing rates from terms ranging from 13 to 52 weeks. Businesses can apply online and will receive approval in minutes. Once approved, merchants can receive funds in their business bank account within one to two days.
Before accepting the loan, borrowers can see the transparent cost and fee structure of the loan, including the fixed fee. There are no hidden, origination, late payment, early repayment, or application fees.
“Applying for a traditional loan takes time and isn’t always favorable to small business owners,” said President of PayPal Canada, Paul Parisi. “We’re launching the PayPal Business Loan to offer our merchants easy access to financing, something they desperately need. We look forward to helping more small business owners achieve their dreams to grow locally and globally.”
This news comes almost six years after PayPal began offering business financing solutions. Since that time the company– which was founded in 1998– has provided $10+ billion in funding to nearly a quarter of a million business owners around the world. PayPal reports that historically, the most common uses of the loans include managing cash-flow (44%), purchasing inventory (37%) and investing in marketing (31%).
The loans are currently available to select Canadian business owners by invitation only. PayPal will make the loans available to all Canadian PayPal business account holders next year.
PayPal showcased its Instant Account Creation feature at FinovateFall 2012. The company, which made its 19th acquisition earlier this month, has a market capitalization of $116 billion.