Working Capital
Editorial Team
At Working Capital, we believe access to funding should be simple, transparent, and designed around your business not the other way around. We’re committed to helping entrepreneurs make smart financial decisions with tools, guidance, and lending partners they can trust.
A funding need rarely arrives when it’s convenient, like right after your biggest client pays off their invoice. Opportunities and financial emergencies often emerge when funds are tight. That forces you, like other small business owners, to make decisions quickly, whether that means purchasing inventory, covering operating expenses, managing seasonal changes, or investing in growth. But securing capital can be difficult when traditional lending processes require extensive paperwork, long approval timelines, or financing terms that do not match the way a business gets paid.
For businesses already operating through online marketplaces and payment platforms, it is increasingly common to find financing options within the tools you use every day. PayPal and Walmart Marketplace Capital both provide access to working capital through their platforms, using merchant activity and sales performance to determine funding opportunities. While both working capital financing companies have integrated processes to help businesses access capital more easily, the way each program works differs significantly.
For businesses that want a predictable repayment schedule, the PayPal Business Loan provides short-term financing with fixed weekly payments. The loan is available to merchants with an active PayPal Business account, at least nine months in operation, and more than $33,300 in annual revenue. Eligibility for these short-term business loans is not based solely on PayPal sales activity. PayPal also considers broader business performance and may request bank transaction information as part of the review process.3
The application process is designed to be completed quickly, typically taking only a few minutes. Submitting an application does not affect a business owner’s credit score, but once a loan offer is accepted, PayPal’s lending partner, WebBank, conducts both personal and business credit checks. However, PayPal does not require collateral or a personal guarantee.3
Approved borrowers can access between $5,000 and $200,000 as first-time customers, while repeat borrowers may qualify for loans up to $300,000. Repayment follows a fixed schedule, with weekly payments automatically withdrawn from the business bank account over terms ranging from 17 to 52 weeks. PayPal applies a flat-fee pricing model to its term loans, meaning borrowers know the total cost upfront. The Business Loan does not include late fees or early payoff penalties.3
The fixed payment structure can be a useful fit for businesses that value consistent repayment amounts or those that generate significant revenue outside of PayPal. By separating repayment from daily PayPal sales, the Business Loan provides an alternative for merchants who want access to working capital without variable sales-based deductions.
Walmart Marketplace Capital does not offer a traditional term loan product. Instead, Walmart provides a single MCA-style financing option structured as a cash advance with repayment based on a percentage of daily marketplace sales.
Because Walmart does not provide a fixed-term loan with scheduled installment payments, sellers cannot choose between revenue-based financing and a traditional loan structure within the Walmart ecosystem. Businesses looking for a loan with set payment amounts, a defined repayment period, or installment-style terms would need to consider financing options outside of Walmart Marketplace Capital.
PayPal Working Capital is a merchant cash advance (MCA) offered to businesses that process sales through PayPal. PayPal advances funds based on a merchant’s PayPal sales activity and collects repayment as a percentage of future PayPal revenue.4
Eligible businesses can receive advances ranging from $1,000 to $200,000, with repeat borrowers potentially qualifying for amounts up to $300,000. Because the program is tied directly to PayPal’s payment platform, approved funds can be deposited into the merchant’s PayPal account within minutes.3
To qualify, businesses must have a PayPal Business or Premier account with 90 days or more of sales history and a minimum of $15,000 in PayPal sales annually for Business accounts or $20,000 for Premier accounts.3
Repayment is designed to adjust with business revenue. PayPal automatically collects an agreed-upon percentage of daily PayPal sales, so repayment amounts increase when sales are higher and decrease when sales slow. Businesses are not assigned a fixed repayment schedule, but they must repay the advance or meet minimum repayment requirements by paying down a fixed percentage of the balance that remains every 90 days.4
PayPal discloses the cost of financing upfront. A single flat fee is included in the total repayment amount. There are no interest charges, late fees, or prepayment penalties. PayPal also does not require a personal credit check, personal guarantee, or collateral when applying for Working Capital.3
PayPal’s Working Capital program is built around the company’s existing merchant ecosystem, allowing businesses to access fast working capital loans without a lengthy lending process. For PayPal sellers who want financing tied to sales performance rather than fixed payments, the program provides a revenue-based option with fast access to capital and clearly defined repayment requirements.
Capital by Walmart provides MCA financing exclusively to eligible third-party sellers operating on Walmart Marketplace. Unlike traditional lending products that allow businesses to submit an application when they need funding, Walmart’s program is offer-based. Walmart reviews seller performance using its internal evaluation process and extends financing opportunities to merchants through the Walmart Seller Center.6
When a seller accepts a merchant cash advance loan, the funds are delivered through the seller’s existing Walmart payment account, typically within 24 hours. Repayment is tied to Walmart Marketplace sales, with Walmart automatically withholding a percentage of revenue until the advance and capital fee are fully repaid. Because payments are based on sales activity, the amount collected adjusts with sales.6
Walmart sets the total financing cost at the time of the offer through a single flat capital fee instead of charging interest. Sellers can review the total cost before accepting an offer, but repaying the advance sooner does not reduce the fee amount. The program does not include late fees, and Walmart does not require a personal credit check, personal guarantee, or collateral.6
One limitation for businesses evaluating their financing options is the amount of publicly available program information. Walmart does not disclose standard advance limits, minimum funding amounts, typical repayment periods, repayment percentages, or fee ranges before a seller receives an offer. The specific terms, including the advance amount, repayment percentage, and total cost, only appear within Seller Center after Walmart determines that a merchant qualifies.
This invitation-based structure allows Walmart to tailor offers using marketplace performance data, but it also means sellers cannot review full program details in advance.
The PayPal Business Debit Mastercard® is a spending tool available to businesses with an established PayPal Business account. The card draws directly from the available balance in the merchant’s PayPal account, allowing business owners to use their funds for purchases without transferring money elsewhere. It does not allow businesses to make purchases on credit.5
Businesses interested in the card must have a PayPal account and provide basic business information during the review process.1 Once approved, merchants receive a digital version of the card within minutes,5 allowing them to begin using their PayPal balance right away. Once the business address is confirmed, PayPal will also mail a physical card.1
Account owners can issue up to four additional employee cards, control spending limits, pause or reactivate cards, and monitor transactions through PayPal’s platform.5
The PayPal Business Debit Mastercard also includes purchase rewards. Eligible purchases earn 1% cashback, which is automatically credited back to the PayPal account within about a week after transactions are finalized. Cardholders can also receive rebates at more participating businesses through Mastercard Easy Savings.™5
For businesses already using PayPal, the debit card provides a way to put available account funds to work while adding expense controls, employee spending management, and rewards to everyday purchases.
Walmart Marketplace does not provide sellers with an integrated business credit card option. Its focus is on providing sales-based funding through its capital advance program rather than extending a revolving credit product for everyday business purchases.
Businesses interested in a credit card to manage operating expenses, separate purchases, or earn rewards would need to use an outside business credit card provider rather than a product offered through Walmart’s seller ecosystem.
There is no one perfect financing solution for small businesses. Your business and the way it operates is influenced by a variety of factors, making your financing needs unique. The way that funding fits into your business’s operations can determine whether it supports future growth or applies financial pressure.
PayPal and Walmart Marketplace Capital take different approaches to helping businesses access working capital. PayPal provides more than one financing path, allowing merchants to choose between revenue-based repayment through Working Capital and fixed weekly payments through its Business Loan.
Walmart Marketplace Capital is more narrowly focused, offering a single sales-based advance designed specifically for eligible Walmart Marketplace sellers. These differences can influence how predictable payments are, how businesses plan cash flow, and how much flexibility they have when choosing financing.
The best financing decision starts with understanding what your business needs from capital. Some businesses may benefit from repayment that adjusts with sales, while others may prefer the consistency of scheduled payments. When you compare working capital loan options, look beyond the funding amount and consider how each option affects day-to-day cash flow, so you can choose financing that supports your operations.
2https://www.paypal.com/us/business/financial-services/working-capital-loan
3https://www.paypal.com/us/business/financial-services/small-business-loan
4https://www.paypal.com/workingcapital/faq
5https://www.paypal.com/us/business/financial-services/debit-card
6https://marketplace.walmart.com/walmart-marketplace-capital/
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod
