PayPal has revealed that more small businesses than ever before are turning to its small business finance product, PayPal Working Capital, to access flexible funding. The amount of finance advanced in the UK has risen from £400 million in June 2017 to a total of £625 million. Over 30,000 UK businesses have now benefited from a share of the $5 billion (£3.6 billion) that PayPal Working Capital has provided globally since 2014.
The new figures mark a 56% increase over the past 12 months in the total amount advanced, demonstrating the ongoing need for alternative financing that bridges the gap left by traditional funding providers. Bank branch closures in particular are hitting underserved communities across the country – but for small businesses, technology has provided a convenient alternative: 70% of PayPal Working Capital advances issued in the past year, all of which are made online, were outside traditional bank branch hours.