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PayPal finances French VSEs and SMEs in their development


PayPal announces on Tuesday the launch of its Financing Pro solution in France, to finance the cash needs of companies and the purchase of various and varied supplies. The loan offer complements the payment and commerce platform dedicated to VSEs and SMEs, PayPal Commerce Platform.

According to the electronic payments company, this solution offers business customers “the possibility of obtaining financing in just a few minutes and reimbursements adapted to their activity”, describes a press release.

PayPal is venturing into the field of credit organizations to facilitate access to loans in the post-Covid period. According to a survey carried out by YouGov, 57% of managers of VSEs and SMEs in France have not obtained financing due to the requirements of financial institutions, specifies the company. In addition, 47% of respondents believe that the pandemic has led to a drop in sales, while 26% admit to having abandoned or postponed projects during this period.

Amount capped at 160,000 euros

The amount of credit granted by PayPal to each business is based on the merchant’s PayPal sales volume. Refunds are taken based on a refund rate chosen by the merchant ranging from 10 to 30% per sale. With this system in place, the group specifies that no “hidden costs” are applied. Rather, a single fixed fee is presented to the merchant when he takes the loan.

This funding can then go up to a maximum of 160,000 euros for regular PayPal customers, and 130,000 euros for new customers.

The granting of funding is subject to control. The company analyzes the payment data it has to check a company’s sales performance, as well as its history. According to PayPal, by “shortening the incompressible delays of traditional financial organizations”, the online application process to benefit from this loan can barely take “a few minutes”.

“This solution is part of our desire to democratize the access of VSEs/SMEs to tools that until now were reserved for larger companies. Based on the strong relationship that PayPal has with its professional customers, Financing Pro allows them to meet their development challenges,” said Francis Barel, director of PayPal France, quoted in the press release.





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