Small businesses have a big impact on society here in the UK.
Far from just servicing those in need of a butcher, baker or candlestick maker, at the start of 2018 the nation’s 5.6 million SMEs accounted for more than 99% of all private sector business.
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PayPal has been lending a helping hand to small businesses in the UK for years, offering them faster, easier and more secure ways to pay and get paid for the invaluable goods and services they offer.
That’s why today, we’re proud to announce that
PayPal Working Capital has provided £625 million of cash advances to more than 30,000 British small businesses that need it most.
Launched in the UK in 2014, PayPal Working Capital is a small business financing scheme designed to provide fast, flexible and affordable finance to dedicated owners.
Today’s new figures mark a 56% increase in the small business cash advances we’ve supplied in the last 12 months. This demonstrates that, almost a decade after the credit crunch, British small business owners are still struggling to convince traditional lenders to give them the funding they need to grow.
Fortunately, technology is now providing a handy alternative to bank loans – especially for small business owners who just can’t get to a bank during the day. In the past year, we’ve seen that 70% of PayPal Working Capital cash advances were issued outside of traditional banking hours, meaning our flexible online application model gives small business owners the chance to spend their day doing what really matters: running their business.
Rather than filling in lengthy forms in a bank branch, PayPal already knows the applicant’s business and sales history, so once the application is completed online, owners can have a cash advance of up to £100,000 issued in minutes.
Whether buying in the latest stock, revamping a window display or opening an online shop, how the small business owner chooses to spend the money is up to them! They can even apply again should the need arise. There is no interest – just one fixed fee that you know upfront. Repayments are applied automatically as a fixed percentage of a business’ PayPal takings, which gives them flexibility to pay back only when they’re making sales.
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As I said at the beginning, small businesses are the lifeblood of our economy. Here’s to many more milestone moments in supporting their success.
[1] Source: House of Commons Library ‘Business Statistics’ briefing paper, published 28 December 2017
[2]Some minimum repayment requirements apply, please see Terms and Conditions for more details.