Because your automatic repayments get deducted as a percentage of each PayPal sale, the amount you repay each day changes with your sales volume. The more you sell, the more repayment progress you’ll make that day. You’ll make no payments on days without sales, but there’s a minimum repayment requirement every 90 days.
Depending on the loan terms you choose, you’ll be required to pay at least 5% or 10% of your total loan amount (loan + the fixed fee) every 90 days.
The 5% minimum applies to loans with an estimated repayment term of 12 months or more, based on your business’ past PayPal sales and other factors. The 10% minimum applies to loans estimated to be repaid within 12 months.
For most of our customers, regular automatic payments typically cover the minimum. But if you do get behind, you can make additional payments on the PayPal Working Capital website. Payments can be made using your PayPal balance or a linked bank account.
If you don’t meet the minimum and your loan goes into default, your entire balance could become due and limits could be placed on your PayPal account. Learn more about default in the Borrower Default section of the terms and conditions.