PayPal breaks into small-business lending

PayPal began offering small-business loans on Sept. 24, according to Bloomberg. The company is partnering with Salt Lake City-based WebBank to provide a new product known as PayPal Working Capital.

The no-interest loans will allow merchants to borrow up to 8 percent of their annual PayPal revenue up to $20,000. Payments are made automatically as sales are completed, with PayPal extracting 10 to 30 percent of merchants’ incoming funds until the loan is paid in full.

PayPal plans to offer this product to 90,000 merchants by the end of the year.

Read more at Bloomberg.