As of this week, eBay is starting to switch sellers to eBay payments, and for those with a cash advance pending, the question arises of how to repay PayPal working capital.

It is important to understand that until the moment you migrate to eBay payments, you will be repaying your PayPal working capital with a percentage of your eBay sales (and website or other place of sale). This will not change until your eBay account is activated for eBay payments and funds stop flowing to your PayPal account.

“Your automatic refunds will continue until you switch to eBay Managed Payments. Once you have moved, we will no longer see your individual eBay sales, which means PayPal will not be able to accept automatic refunds for those sales. If you make sales outside of eBay, that is, through your independent website or in-store, PayPal will continue to provide automatic refunds on those sales. “
– Pay Pal

Once you switch to eBay Payments, chances are that insufficient funds will be paid into your PayPal account for the percentage with which you agreed to repay your funding reaches the minimum repayment amounts to repay PayPal working capital. Your minimum repayment amount can be 5% or 10% of the funding.

“Depending on the proportion of your total sales made on eBay, it is likely that you will not be able to meet the required minimum repayment amount every 90 days and that you will need to arrange for additional repayments to repay your advance on eBay. PayPal working capital. “
– Pay Pal

You can currently make additional refunds through your PayPal Working Capital dashboard, directly from your bank account linked to your PayPal wallet, or from your PayPal balance. PayPal is also working on alternative refund methods and will contact you once your business switches to eBay Managed Payments.

This opens up an opportunity for businesses when deciding to repay PayPal working capital. I’m sure PayPal would prefer that you roughly calculate the deductions they would have automatically made from your eBay sales and repay your cash advance at that rate. However, there seems to be an acceptance that in many cases this can be unlikely and you can just make the minimum payment of 5% or 10% every 90 days.

This gives you the flexibility to extend your existing PayPal working capital funding over a considerable period into the future if you wish. We never suggest that you take any liberties, especially as PayPal seems keen to develop alternative funding models in the future that you may want to take advantage of – having a solid history of regular payments will probably help you a lot. However, if you want to manage your cash flow, once you’ve migrated to eBay Payments, an unexpected flexibility in how to pay back PayPal working capital presents itself to you.