B2B Payments

PayPal Expands SMB Loan Offering To Canada

PayPal Expands SMB Loan Offering To Canada

PayPal is expanding its small business lending operations into Canada.

In a press release issued on Monday (Oct. 21), the company announced PayPal Business Loan's Canadian launch, connecting small businesses in the market to loans between $5,000 and $100,000. PayPal pointed to the product's streamlined online application process, which allows small business owners to receive a decision within a few minutes. Upon approval, funds are moved into a business’ bank account within two business days.

"Applying for a traditional loan takes time and isn't always favorable to small business owners," said PayPal Canada President Paul Parisi in a statement. "We're launching the PayPal Business Loan to offer our merchants easy access to financing, something they desperately need. We look forward to helping more small business owners achieve their dreams to grow locally and globally."

The announcement also pointed to small businesses' lack of credit history, which can reduce the availability of external financing for SMBs.

Since launching its small business lending program six years ago, PayPal has since facilitated more than $10 billion to nearly 250,000 small businesses across multiple markets. In the U.S., most of the small businesses that obtained PayPal Business Loans used the financing for cash flow management, inventory purchases and marketing investments, the company noted.

Earlier this year, PayPal Canada expanded its financial services offerings with the launch of global logistics and shipping solutions to promote cross-border trade. Canadian SMBs can access one-day shipping to U.S. customers, package tracking links and a shipment management platform that consolidates services from a range of third-party logistics providers.

In July, PayPal collaborated with Visa to enable instant funds settlement for Canadian small business customers via the PayPal Instant Transfer solution, powered by Visa Direct. The product deploys Visa's real-time push payments capability to move funds from a small business' PayPal account into their bank account via their Visa debit card.

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