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PayPal limited....HELP
 

I was curious if anyone on here could help me understand why I am getting this email. We currently have monthly sales of 60k-150k per month. We have been doing this volume in sales for nearly 3 years. We just took a PayPal working capital loan for $150k on January 2nd. Today I received this email and not understanding why and PayPal could not and would not help.

As part of PayPal's commitment to providing the best possible experience for buyers and sellers, we perform routine reviews of merchant accounts. To complete our review and better understand your business, we need your assistance in collecting the following information:

· Provide your most recent 2 years of financial statements including:
· Balance Sheets
· Income Statement
· Cash-Flow Statement

· Provide the last six months' bank statements for the bank account used for the business.

The statement you provide must show your name, address, and account number exactly as they appear on your PayPal account.

Re: PayPal limited....HELP
 

haha

after 180 day they will took your money same what happened to me

Re: PayPal limited....HELP
 

Provide your most recent 2 years of financial statements including:
· Balance Sheets
· Income Statement
· Cash-Flow Statement

· Provide the last six months' bank statements for the bank account used for the business.
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Paypal lent you $150K,you are a business and they want to review Your Financial Health.
If you are doing $60-150K a month,you must have a bank account and ask your accountants to prepare the statements they asked.

Re: PayPal limited....HELP
 

I am surprised they dont ask for these statements before lending you $150K,but then this is so Paypal!!!!

Re: PayPal limited....HELP
 

That isn't the issue or really the question. Since 2017, we have borrowed $990k from PayPal with the most recent one before this of $200k without any of these questions or issues. I was simply asking if anyone has seen this request and why the request is happening now. It isn't like this is the first time we have used the working capital system. To me its rather troubling they are asking for this now as the 150k was spent on inventory the moment they gave us the loan. Regardless, any help or information anyone has would be appreciated. We submitted the data requested already and awaiting a response, but just nerve racking as if we did something wrong.

Re: PayPal limited....HELP
 

It may not be Paypal which extends the loan,it could be Synchrony Bank

Re: PayPal limited....HELP
 

is your account limited ?

Re: PayPal limited....HELP
 

New underwriting polices.

Are they holding funds or business as usual?

Re: PayPal limited....HELP
 

Paypal sold its loan portfolio to Synchrony Bank,you know it lost Wmt CREDIT CARD business !

Re: PayPal limited....HELP
 

I have not seen this before and I have had plenty of working capital loans, but 50k being the biggest.

Perhaps as you are growing the loan amount after each loan you may have tripped a verification point.

What they are asking for is not insurmountable, and remember the loan you are taking is not secured personally and only relies on your sales volume as an indicator on how much to lend you.

Re: PayPal limited....HELP
 

If you walk into your bank and ask for a 6 figures loan,they would want to know more about your business,what Paypal is asking is what any business lender would ask,what takes so long for Paypal ?
As for OP,doing millions dollars of business a year,he must have an accountant and a set of books,he should have no problem producing statements.
OP said it is troubling as he has used the fund to build his inventory,that should not be a problem unless this is all you have on your balance sheet/current assets.

Re: PayPal limited....HELP
 

If I don't take on this loan, I won't be asked all these balance sheets and income statements would I? Still starting out after I got banned for some minor offenses.

Re: PayPal limited....HELP
 

do not hijack other people's thread.
depends on how much you are borrowing.
not everyone knows how to prepare a balance sheet.
But OP has a multi million dollar business,his accountant should prepare one for him.

Re: PayPal limited....HELP
 

Paypal gave you a 150K loan and you didn't have to provide these documents already? Find THAT real hard to believe!

Re: PayPal limited....HELP
 

Yes. That is 100% how it works. No documents at all for Working Capital Loans. It is ONLY based on your sales volume and repayment history with them. They also take out a very hefty fee.

Re: PayPal limited....HELP
 

Paypal sold these loans to Synchrony Bank,so it could be the bank asking.

Re: PayPal limited....HELP
 

150K is a lot of money,one can take the money and retire,what can Paypal do?
Can it slap lien on house?

Re: PayPal limited....HELP
 

We received the loan funds on the 2nd and got these requests on the 7th. The loan proceeds have already been spent on inventory. The account is not limited, but theres a threat of shutting down being able to receive money on the 21st if we dont provide the documents. My accountant is working on everything now. The bank statements have already been submitted. Was only asking if anyone else had these issues or requests. Makes no sense to me. They stated they are requesting to make sure they want to continue to do business with us. They are requesting documents now from merchant accounts to make sure they are a fit for PayPal. Again, makes no sense. If we aren't a fit, they are going to stop allowing us to take payments and in turn, not get their money back from the working capital loan. Sounds pretty stupid to me and doesnt make sense. If we switched to managed payments on our own, we would be required to pay back the money immediately, but what happens if they decide they dont want us with PayPal anymore AFTER giving us the money? Then what. Im curious on the outcome of this, but to me, they should have asked for these documents before giving the working capital money. Will update when we get final results.

Re: PayPal limited....HELP
 

Truthfully, are they even legally allowed to ask for this data? The loan we requested was for working capital which has nothing to do with profitability of a company. What does profitability have anything to do with using PayPal on a day to day basis? Im more just looking for information or thoughts, but it doesnt make sense to us why we would be asked for this after getting a working capital line and to be able to continue to use PayPal. We sell sports memorabilia and video games, so we dont sell anything thats in a risk category.

Re: PayPal limited....HELP
 

read your terms and agreement with Paypal.

Re: PayPal limited....HELP
 

I already did and just did again. The only thing in the terms and agreement is identity verification, not business health/wealth. Truly it isn't that big of an issue, its just the fact that its annoying and I dont think its legal for them to do so. They state in the T&A they can shut down your account for any reason but theres nothing stating they have the right to ask for any such documents to be able to continue to use the service. As I stated in a previous post that isn't posted yet for some reason, we are being asked after getting the funds and not for the lending process, so this should have nothing to do with the working capital loan as its all based on sales and has nothing to do with profits/assets of a business

Re: PayPal limited....HELP
 

if you are running a multi million dollars business and borrowing 6 figures ,you should have a ledger,just ask your accountant to prepare the statements.
if you have a bank account solely for running this business,then show it to Paypal.

Re: PayPal limited....HELP
 

We do, I suppose you are missing my point of this. I don't think the issue I am having is actually submitting this, its questioning the purpose of doing so and what reason they have for wanting or needing it to continue using the service. Theres nothing in the working capital agreement that states lending is based on business assets or profits. To answer a previous question which was in a post not shown yet, our account is not limited at this time. If we dont submit and they approve the required documents by the 21st, then it will be limited. They are asking for nearly 3 years of data that has nothing at all to do with anything in their agreement, use policy or working capital agreement. Do they currently have a threshold for this now? Do we have to have assets of X to use? What is the purpose of this. That was the whole reason for me posting this. FYI, we dont do millions per year. Our best year was this past year where we did approximately 1.1 million is sales. Previous years were 200-700k. I also own a cleaning company that makes 6 figures per year and I have a very good accountant. He is also questioning the legality of this and what the purpose is or was of this as it has no bearing on the loan and shouldn't and doesnt matter for use of service. We could lose 100k a year and what does that matter to PayPal as long as our sales continue at 60-100k a month so they get their fees and working capital money that they agreed to give. Profitability has no bearing on anything and thats what they are looking for

Re: PayPal limited....HELP
 

I dont understand why you think they should not ask for details. You have me for a total loss here.

Re: PayPal limited....HELP
 

Profitability has no bearing on anything and thats what they are looking for
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either OP is from USSR or A Communist country OR she has some serious flaws she tried to hide/
Profitabilty has every thing to do with lending you 6 figures !
Dont waste any more time to argue here,we are not Paypal,if you cant produce these statements,not only will your account be limited,it would cancel your loan and ask for immediate payment.

Re: PayPal limited....HELP
 

Most probable answer: You are F#%#, they will hold your money for 180 days then steal it.

Short answer with possibility of getting your money?:
Lawyer up, then send docs.

Re: PayPal limited....HELP
 

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Not sure if this is theft,it will ask her to pay back what she owed,and whatever she has in her Paypal account would be used to pay down what she owes (150k)
(She said she has already spent that money to buy inventory.So Paypal could limit her account,she can still sell and accept payment,but she cannot withdraw)

Re: PayPal limited....HELP
 

What?

HE ALREADY HAS THE MONEY :noidea:

Re: PayPal limited....HELP
 

That 150K has already been turned into inventory ,read her/his post.

Re: PayPal limited....HELP
 

For some reason in my sleepy drog I misread the op as stating My bad OP, and any confused by my reply, idk what the hell I was talking about last night.:typing: