PayPal launches tool to help Australian SMEs grow

Australian business owners now have another tool in their arsenal to acquire funding for strategic investments.

PayPal recently announced that it is making a new loan product available to Australian small and mid-sized enterprises. The offering, which is called Working Capital, was previously only available to US businesses.

By taking advantage of this tool, Aussie business leaders can quickly access funds through their PayPal accounts, drawing on their transaction history to help identify the right funding options.

After choosing how much they want to borrow and how much of their PayPal revenue will go toward repaying the loan, merchants see the funding deposited in their accounts. From there, they can utilise the capital to further their business objectives.

"Working Capital is ideal for small-to-medium-sized business owners who need fast, simple and flexible solutions to fund activities, like staffing up ahead of seasonal demand or buying additional inventory to meet orders," said Kareem Al-Bassam, PayPal's director of customer experience and solutions.

"We're using data and technology to provide a tailored credit solution that meets the needs of small businesses today. The capital is granted to eligible PayPal merchants in minutes, and merchants only make repayments when they get paid."

Al-Bassam noted that Australia is one of the first markets after the US to be chosen for this novel product. This decision reflected Aussie SM??€‹Es' demand for broader financing options.

Reporting on this development, The Australian noted the US version of Working Capital has been around for about a year, now lending around US$1 million every day.

In Australia, the offering will be available to a limited group of Australian SMEs by the end of the year, with a complete rollout coming in the next year.

Whether SME owners acquire funding for their investments through PayPal or other options, they can also protect their assets by attaining business insurance - an important step in safeguarding their financial security.