On this page
On a small screen, scroll the table sideways to see every column.
| Offer detail | What to check |
|---|---|
| Cash received | The actual advance available to your account. |
| Fixed fee | Total dollars owed above the advance. |
| Sales repayment percentage | Cash left for stock, delivery, wages and other costs. |
| 90-day minimum | The payment required even if sales slow. |
| Early repayment | Whether the fixed fee changes when you repay sooner. |
| Account requirements | Current eligibility and permitted use of the facility. |
How repayment works
PayPal describes the Australian product as a business loan with one fixed fee, repaid through a percentage of PayPal sales. It also requires a minimum payment every 90 days. The offer and agreement explain the applicable repayment percentage and minimum.
This can make daily deductions move with sales. It does not mean that a quiet quarter has no repayment obligation. Read the minimum requirement before treating the facility as entirely flexible.
Check the account criteria before relying on an offer
PayPal's Australian product page bases eligibility and the available advance on account history and other criteria; approval is not guaranteed (checked 5 October 2026). Check the current requirements through the official account process and read the offer before committing the expected funds to a supplier.
Review your recent PayPal sales pattern. A peak season can produce a different repayment expectation from the quiet months that follow. A growing business may also need more cash for stock just as deductions increase with sales. Use the likely next trading period, not only the period that generated the offer.
If most sales occur through another channel, a PayPal-based offer should not be assumed to reflect the whole business's turnover or funding needs. Model the actual eligible receipts used for repayment and the cash required across all channels.
Turn the fixed fee into an amount the investment must cover
For the illustrative $20,000 advance and $2,000 fee, the funded activity must support $22,000 of repayments as well as its other costs. If the advance buys stock, calculate the cash left after replenishment, delivery and the deduction. A profitable gross margin can still leave too little cash at the time bills fall due.
Compare using a smaller advance or delaying part of the purchase. The amount available through an account offer is not a target to borrow. If the business only needs $12,000 for a specific stock order, assess that requirement and its offered fee separately.
Compare the offer without calling the fee an interest rate
For illustration, a $20,000 advance with a $2,000 fee creates $22,000 to repay. The fee is 10% of the advance, but that is not a 10% annual interest rate. Repaying the same fee over a shorter period has a different annualised cost.
To compare with another loan, use the same expected repayment period and include every charge. Model both ordinary sales and slower sales. Check the agreement for what happens to the fee if you repay early; do not assume that a faster payout produces an interest saving.
Work backwards from cash left after a sale
Start with expected PayPal receipts, subtract the Working Capital deduction, then allow for stock, delivery, payment charges and other operating expenses. Use your own margin and the offer's repayment percentage. The same deduction can be manageable on a high-margin order and difficult on a discounted one.
Prepare both an ordinary quarter and a quieter quarter, and check each against the stated 90-day minimum repayment. A forecast based only on automatic deductions may miss an additional amount needed to meet that minimum.
PayPal states that customers must not divert sales from their PayPal merchant account while the loan is outstanding. Read that restriction in the full terms before accepting. Faster repayment also needs a cost check: do not assume the fixed fee falls simply because you clear the balance sooner.
Calculate a possible top-up to the minimum
Take the minimum stated in your agreement and compare it with expected automatic deductions for each 90-day period. For an illustration, a required minimum of $2,200 with only $1,500 forecast to be deducted leaves another $700 to find. Those figures are assumed; use the actual offer's requirement.
Keep the shortfall visible in the wider cash forecast rather than assuming sales deductions settle every obligation. Check progress before the period ends so there is time to address a shortfall. If difficulty emerges, contact the provider through its official support process and review the agreement's consequences.
A sales deduction and an ordinary transaction fee are separate cash movements. Include both where applicable when calculating the cash retained from an order. Refunds, reversals and the timing of account activity can also make a simple sales forecast differ from actual cash available.
Judge a later advance as a fresh decision
Repaying one facility does not establish that another will be approved or offered on the same terms. Avoid placing the next stock order on the assumption that replacement funding is certain. Track whether the original borrowing improved the trading position or merely brought forward money that the next cycle now needs.
If each advance is required to clear the gap created by the previous one's deductions, revisit stock levels, prices, supplier terms and the funding structure. A repeat offer can be convenient, but the decision should be supported by a new cash forecast and the current cost.
Who should look elsewhere?
A new business without the required PayPal history may need another funding route. A business buying a long-lived asset should compare asset finance; a business wanting reusable borrowing capacity should compare a line of credit.
Accept an individual offer only when the funded purpose justifies the total charge and the cash left after deductions covers the next trading cycle. Save the agreement and keep its minimum-payment dates in the cash forecast.
Current eligibility and the minimum repayment
PayPal’s Australian Working Capital page was checked on 10 October 2026. Minimum criteria include a business account held for 90 days, at least $15,000 in eligible annual PayPal sales and Australian location. An existing advance normally needs to be repaid; an early refinancing invitation is an exception. The amount offered depends on the account, so a fixed public maximum should not be assumed.
The offer has a fixed finance fee, with no periodic interest. Normal payment-processing and currency charges continue. Automatic repayments follow the chosen sales percentage, but at least 5% or 10% of the advance plus fixed fee must be repaid every 90 days. PayPal applies 5% where it estimates repayment taking 12 months or more and 10% for a shorter estimate. Missing the minimum can make the outstanding balance immediately due; a slow-sales period does not remove this obligation.
Illustration: a $20,000 advance plus a $2,000 fixed fee creates a $22,000 balance. The 90-day minimum would be $1,100 at 5%, or $2,200 at 10%. These assumed figures show the calculation, not an available PayPal offer.