The roll-out of PayPal Working Capital will reportedly reach Australia before it gets to the UK, following its successful introduction in the US.
A report in Business Matters Magazine says demand from Australian SMEs is behind the decision to provide the service there in 2015.
The UK, meanwhile, seems likely to be the next to get access to the scheme, which provides lump sums of cash to small businesses in exchange for repayments made as a percentage of future income.
Kareem Al-Bassam, customer experience and solutions director at PayPal, told BM Magazine: “Working Capital is ideal for SME owners who need fast, simple and flexible solutions to fund activities, like staffing up ahead of seasonal demand or buying additional inventory to meet orders.”
It allows businesses to obtain lump-sum funding up to 8% of their annual sales through PayPal, and repay it with interest using a proportion of future PayPal sales.
There are no hidden charges, according to PayPal, including any early settlement or late repayment penalties.
However, the launch in the US has not gone entirely smoothly; some users of Working Capital have taken out their first loan and met their repayments, only to be denied when attempting to obtain a second round of funding.
In posts on the PayPal Community Help Forum, critics claim that applications can be denied for everything from refunds made for eBay items lost in the post, to using an incompatible web browser to fill out the application form.
There is also uncertainty among some users over whether a credit reference check is performed – and whether multiple unsuccessful applications for Working Capital might have a long-term negative impact on your credit score.
However, one user pointed out that completing one successful use of the scheme does not guarantee approval on subsequent occasions, which in turn therefore does not mean PayPal have not kept their side of the deal.