Paypal Working Capital is Paypal’s business loan service where you repay the loan by Paypal taking a percentage of every payment you receive until the loan is paid off. But what if you want to make a single manual payment or an extra payment on your Paypal Working Capital loan using a credit card or bank account? (The way that Paypal Working Capital works is that instead of being charged interest, you pay a single, up-front fee; that fee is generally between 1.75 and 5.45% of the loan total; how much you choose to let Paypal take out of each Paypal payment that you receive determines how much the up-front loan will be – the more you let them take out of each received payment, the lower the up-front fee will be.)
Before we get in to how to actually make a manual payment on your Paypal business loan, here’s the TL;dr: In order to make an extra, manual payment on your Paypal Working Capital loan you must have money in your Paypal account. The only way to make a manual payment on that loan is by using funds that are already in your Paypal account.
In other words, you cannot directly make a payment on your Paypal loan with a credit card, and you cannot make a payment on your loan using the bank account that you have connected to your Paypal account, even though if you don’t have enough money in your Paypal account to cover a Paypal payment to a merchant or other third-party, Paypal will draw from your connected bank account to cover it! Despite that, in order to make a manual payment on your Paypal loan, if you don’t already have the amount in your Paypal account, you must first take an intermediate step or two. So here is how to do it.
How to Make a Manual or Extra Payment on Your Paypal Working Capital Loan Using a Credit Card or Bank Account
Now remember, this is assuming that you don’t have the amount that you wish to pay already in your Paypal account (if you do, skip down to the “How to Make the Manual Loan Payment on Your Paypal Loan” section). Let’s say that you wish to pay $25.00 on your Paypal Working Capital Loan, and you don’t have that much in your Paypal account (for example, if you have Paypal Auto Sweep your funds to your bank account every night).
What you need to do is transfer the amount into your Paypal account from your connected bank account (read on for what to do with a credit card). To do this, log into your Paypal account, go to the Money section, and click on ‘Add Money’.
Now select the bank account from which you want to transfer in the money.
Enter the amount that you want to transfer in (i.e. the amount of the manual loan payment you are going to make).
Confirm the transfer.
Take note that the transferred-in money may not hit your Paypal account for a few days, so you may need to plan ahead.
But What if You Want to Use a Credit Card?
Here’s the bottom line – there is no way to directly make a Paypal loan payment with a credit card. So what you need to do is get a cash advance from your credit card, deposit it into the bank account which is connected to your Paypal account, then transfer the cash from your bank account to your Paypal account, as outlined above.
How to Make the Manual Loan Payment on Your Paypal Loan
Once you have the money in your Paypal account, you are ready to make that extra loan payment on your Paypal loan.
From the Summary page of your Paypal account, look down the left-hand side and find the Paypal Working Capital section. Click on ‘See loan details’.
This will take you to the summary page for your Paypal Working Capital Loan. Part-way down the left-hand side you will see the button to make a payment.
Click the payment button, enter the amount of the manual loan payment you wish to make, and click on the Submit Payment button.
After submitting the payment you will see confirmation in your loan summary of your manual payment.
Now, personally we think that Paypal should make it easier for you to make an extra, manual payment on your loan from your credit card or, at least, directly from your bank account. But at least now you know the work-around to do it.