[Marc Stock]

Just been offered this from PayPal, due to the sales volumes I process using cards apparently i am processing enough payments to warrant this service.

Never heard of it before has anyone used something like this before?

[Lee Pryor]

Yep. I borrowed £16k off that last year. You set the repayment percentage. I went for the maximum of 25% so every PayPal transaction you have 25% goes towards repayment of the loan. You can set lower. Took me 10 min to set it up and the money was there straight away.

[John Mart]

I’d have thought it would be expensive.

[Kev Martin]

Just been offered this from PayPal, due to the sales volumes I process using cards apparently i am processing enough payments to warrant this service.

Never heard of it before has anyone used something like this before?

I looked at it when it first came out!  The upshot is,  after calculating a typical loan  it is without doubt one of the most expensive ways to borrow I have seen.  Amazon do a similar rip off scheme as well.  If PAYPAL are offering you a loan, you will get one elsewhere at a much more competitive rate.  Then just pay it back out of your Paypal balance monthly.

[dazmond]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

[Marc Stock]

Yep. I borrowed £16k off that last year. You set the repayment percentage. I went for the maximum of 25% so every PayPal transaction you have 25% goes towards repayment of the loan. You can set lower. Took me 10 min to set it up and the money was there straight away.

How do you classify the funds when you withdraw them to the business. Do you bring it in through the directors loan account as an asset? How do you show the account is being paid back if 25% of sales revenue is taken at source? As there will be no journal entries to show it.

Cheers

[Marc Stock]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

[dazmond]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

[G Griffin]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

[Kev Martin]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

No Griff all been stopped

[John Mart]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

No Griff all been stopped

But you surely get interest if you pay over 4/5 months for a holiday? I haven’t owned a credit card for 25 years I don’t think.

[dazmond]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

NO you dont griff...not any more.companies are not allowed too.........

[dazmond]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

No Griff all been stopped

But you surely get interest if you pay over 4/5 months for a holiday? I haven’t owned a credit card for 25 years I don’t think.

no you dont if you have an interest free credit card.you dont pay a penny!my interest free period is 30 months(2 and a half years).when this runs out ill simply get another 30 month interest free card,their always offering them me!

[Kev Martin]

I think we are talking at cross purposes here.  There is no doubt that people have interest free credit cards but until recently various airlines and retailers including me were charging between 2-5% for accepting payment by credit card.  This charge included those who have interest free cards because we were trying to recover what we were being charged by the credit card companies nothing more.  In essence the CC Companies were charging both the Cardholder and the retailer for the privilege of using their card.  What has changed is that the retailer, airlines are no longer allowed to charge a fee or a % for the use of Credit Cards.

[dazmond]

im always getting offered paypal credit/30 month interest free credits cards,£20k low interest loans etc,etc.....but one credit card is enough for me (until the interest free runs out,then ill just get another interest free one)......my credit limit is £5,600.(not too high and not too low)

ive NEVER paid any interest on a credit card ever....

If you pay off your card in full at the end of the month; you will never be charged interest.

I mainly use my credit card for bigger purchases or for holidays abroad so just pay the lot in one go(say 2k)then pay it off £500 a month etc.....still no interest paid...

2k?
What's that for? A weekend in a five star hotel? 
Don't you get charged 2% for using a credit card when booking your holiday?

a week in a 5 star hotel (adults only) griff  all inclusive for me and missus....

[dazmond]

I think we are talking at cross purposes here.  There is no doubt that people have interest free credit cards but until recently various airlines and retailers including me were charging between 2-5% for accepting payment by credit card.  This charge included those who have interest free cards because we were trying to recover what we were being charged by the credit card companies nothing more.  In essence the CC Companies were charging both the Cardholder and the retailer for the privilege of using their card.  What has changed is that the retailer, airlines are no longer allowed to charge a fee or a % for the use of Credit Cards.

so in essence you dont pay any extra for using a credit card and dont pay any interest on repayments during the long interest free period but you have better consumer protection than using a debit card if something goes wrong....lovely.....

[Kev Martin]

I think we are talking at cross purposes here.  There is no doubt that people have interest free credit cards but until recently various airlines and retailers including me were charging between 2-5% for accepting payment by credit card.  This charge included those who have interest free cards because we were trying to recover what we were being charged by the credit card companies nothing more.  In essence the CC Companies were charging both the Cardholder and the retailer for the privilege of using their card.  What has changed is that the retailer, airlines are no longer allowed to charge a fee or a % for the use of Credit Cards.

so in essence you dont pay any extra for using a credit card and dont pay any interest on repayments during the long interest free period but you have better consumer protection than using a debit card if something goes wrong....lovely.....

Yes you are right!  But to counteract the Government initiative lots of retailers have either increased their prices to accommodate for the 3% charge that the CC Companies still levy, lowered their discounts or have stopped taking Credit Cards in payment

[Kev Martin]

Just been offered this from PayPal, due to the sales volumes I process using cards apparently i am processing enough payments to warrant this service.

Never heard of it before has anyone used something like this before?

Marc

Here is a quick calculation for you!

Assuming you take in Annually £48000 in Paypal payments and you want to borrow £10000 you have to choose from your £4000 monthly income a percentage repayment between 10-30%.  So lets assume you go in the middle for 15% that is a repayment every month of £600 which will take 21 months to repay with a total fixed fee of £2318 because they don't charge interest
This works out at an equivalent interest rate of around 28% plus and this is the best bit you pay them another £2520 in PAYPAL fees whilst you are paying them back.  So in essence borrowing £10000 over 20 months will cost you £4838.  Rates are even worse if you take less per annum for them but better if you take more so if you only took £40000 per year the cost would increase to £2982 another £664 because they would have to wait 26 Months for repayment then they would charge you the additional Paypal fees of £2600 making a total of £5582 for borrowing £10K over 26 Months.  Essentially they will only lend you a maximum of 25% of your annual Paypal income.

Cheap innit

As a comparison Sainsbury's would possibly lend you subject to status £10K over 24 months for a total interest charge of as little as at best £280 but even if you were slightly naughty still less than £500.

SO WHO IS FIRST FOR A PAYPAL LOAN THEN?

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[Marc Stock]

Im not taking a loan anyway; nor do i need one.

[Tom-01]

Yep. I borrowed £16k off that last year. You set the repayment percentage. I went for the maximum of 25% so every PayPal transaction you have 25% goes towards repayment of the loan. You can set lower. Took me 10 min to set it up and the money was there straight away.

What was the £16k for? Didn't you have £250k from selling your house?