E-payments giant PayPal announced this week that it had successfully funded 14,000 UK SMEs with a total of £185 million since November 2014. And in a move designed to increase the company’s market share of the SME lending space, PayPal has announced it plans to raise the funding limit to £60,000. That figure contributes to the sum of over $2bn (£1.55bn) advanced to SMEs globally since the launch in 2013.
Nicola Longfield, director, small and medium business – UK & Ireland, said of the news, “Small businesses play a crucial role in powering the UK economy – last year small businesses accounted for 99.3% of all private sector business, with a combined annual turnover of £1.8trn. At PayPal, because of our close relationships with small businesses, we are uniquely positioned to help them succeed. We understand that for small businesses the pace of change is rapid and, on occasions, unpredictable. PayPal Working Capital is designed to respond to this by providing flexible capital, which can typically be approved and funds obtained within minutes.”
The working capital service isn’t PayPal’s first foray into the small business space. Last year it worked with a number of small firms to improve access to contactless payments with its card reader.