PayPal has launched the PayPal Business Loan, enabling small business owners to easily access loans between $5,000 and $100,000 at competitive prices.
In a news release on Monday, the company said small business owners can quickly and easily access financing with the ability to customize loan amount and repayment timeline.
“Applying for a traditional loan takes time and isn’t always favourable to small business owners,” said Paul Parisi, President of PayPal Canada. “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.”
A lack of credit history, high barriers to borrowing from traditional lenders, and long wait times to receive funds have long been three challenges small businesses face when attempting to secure capital through traditional loans. Nearly one in five entrepreneurs say getting the financing they need from a traditional financial institution is challenging, said PayPal.
“A 2018 study (IBIS World, BDC, Cambridge Centre for Alternative Finance and the Ivey Business School at Western University) found that Canadians have a real need for quicker and better financing solutions. The study found alternative loans have steadily grown to 24 per cent in 2018 – up from just under four per cent in 2013. At the same time, the alternative lending market in Canada grew by 159 per cent between 2016 and 2017,” said the company.