PayPal Exceeds $30B in Business Loans and Merchant Cash Advances
March 26, 2025
PayPal has officially crossed $30B in merchant cash advance and business loan originations, the company announced.
“Access to capital is consistently one of the top challenges small businesses face as they look to maintain and scale their businesses,” shared Michelle Gill, EVP and GM of SMB and Financial Services at PayPal in an official release. “Traditional business loans are not only difficult to secure for small businesses, but the application process can be challenging and prohibitively time consuming. PayPal’s financing solutions have a streamlined online application process with no lengthy paperwork or extensive credit checks, and approved PayPal loans are funded within minutes. We launched PayPal Working Capital and PayPal Business Loan to serve this important need, and to provide a quick and responsible way to inject much needed capital to help fuel small business growth.”
PayPal had pulled back significantly on originations for a while as can be seen here but ramped back up last fall. For example, PayPal said that global originations had surpassed $25.6B at the end of Q2 2022 across a total of 1.3 million transactions. That means it has added roughly $5B in originations across 100,000 transactions in the span of almost 3 years since they now report 1.4 million total.
“Small businesses have seen tremendous value in PayPal Working Capital and PayPal Business Loan, as both offerings continue to receive remarkable feedback from customers,” the company said. “Additionally, both offerings have achieved Net Promoter Scores of 76 and 85 respectively and our customers renew loans or access our offerings on a repeat basis more than 90% of the time. Businesses also experience an increase in their total PayPal payment volume by 36% after adopting PayPal Working Capital and 16% after taking a PayPal Business Loan.”
BriteCap Financial Expands Team to Support Growth
March 10, 2025LAS VEGAS, NV – March 7, 2025 – BriteCap Financial, a leading provider of tailored financial solutions for small businesses, has announced the addition of three key hires to support its continued growth: Cary Thomas as Director of Collections, Sherri Johnson as Senior Accountant, and Amy Thompson as Digital Brand and Content Manager. These strategic hires
underscore BriteCap’s dedication to operational excellence, financial strength, and brand innovation.
“Building a world-class team is essential to delivering exceptional value to our customers and driving sustainable, smart growth,” said Richard Henderson, CEO of BriteCap Financial. “These new additions bring valuable expertise that will enhance our operations and elevate our brand presence.”
Cary Thomas joins BriteCap as Director of Collections, bringing a wealth of expertise in financial recovery and collections management. With his extensive background in optimizing recovery strategies, he will lead initiatives to enhance efficiency, improve collection processes, and uphold strong client relationships. Thomas’s leadership and strategic approach will play a key role in strengthening BriteCap’s financial operations while maintaining a customer-centric focus.
Sherri Johnson has been appointed as Senior Accountant after making a significant impact as a contractor. With a strong track record of driving operational efficiencies, Johnson will contribute to enhancing the company’s financial stability and supporting its long-term growth.
Amy Thompson, joins BriteCap as Digital Brand and Content Manager, bringing her expertise in visual storytelling and strategic content creation to help elevate BriteCap’s digital presence.
Thompson will focus on crafting compelling visuals and engaging content across digital platforms to strengthen brand recognition, deepen customer connections, and amplify the company’s marketing impact.
BriteCap Financial, a proud member of the NMEF family of companies, has recently gained recognition for a series of strategic initiatives, including securing a $150 million credit facility last year and expanding its leadership team to position the company for long-term growth. With a focus on innovation and a customer-centric approach, BriteCap continues to enhance its product offerings, including attractive term loans for small businesses and a seamless online checkout system designed for merchant and broker convenience.
“We are excited about the momentum we are building and remain focused on driving long-term shareholder value while delivering innovative financial solutions to our customers and our broker partners who serve them,” added Henderson.
For more information about BriteCap Financial and its suite of financial solutions, visit www.britecap.com.
About BriteCap Financial
BriteCap Financial, as part of the NMEF family of companies, is a leading provider of working capital loans for America’s small business owners. Since 2003, BriteCap has been combining technology, an extraordinary experience, and non-traditional credit algorithms to provide fast, convenient and affordable working capital loans directly to businesses or through their exclusive network of broker partners. If you wish to be considered for joining our exclusive broker partner network, please visit https://www.britecap.com/partners.
Media Contacts:
For BriteCap:
David Schneider
Vice President of Marketing
BriteCap Financial, www.BriteCap.com
david.schneider@britecap.com
954-494-1606
For NMEF:
Blair Dawson
SVP, Chief Marketing Officer
NMEF, www.nmef.com
bdawson@nmef.com
203-354-1710
Shopify Capital Originates ~$3 Billion in Merchant Funding in 2024
February 11, 2025
Shopify Capital originated ~$3 billion worth of MCAs and business loans in 2024, up by 50% over the prior year. For the sake of comparison, online small business lender Enova originated $4 billion in 2024. Shopify is an e-commerce platform first, however, and is growing on all fronts
“2024 was a stand-out year for Shopify,” said Shopify President Harley Finkelstein. “We seized every opportunity to fuel our growth and it showed in the results quarter after quarter. Heading into 2025, we are committed to making entrepreneurship more common and further establishing Shopify as the go-to commerce platform for businesses of all sizes. With our proven track record, the agility of our platform, and our relentless focus on merchant success, we like our odds in this evolving technology landscape, and are excited about the opportunities it brings for Shopify and our merchants.”
Lightspeed Accelerates Growth of its MCA Business
February 9, 2025Lightspeed Capital accelerated the growth of its principal issued for its merchant cash advance program, the company shared in its latest quarterly earnings report. Normally the company has more to say about this division but its attention was focused on an “executing a full transformation plan.”
As part of its previously-announced strategic review, the Company conducted an in-depth evaluation of its portfolio, including market attractiveness, competitive dynamics, and its right-to-win as well as evaluating the best ownership structure to navigate Lightspeed through a transformation. The Company has already set its transformation plan in motion, focusing on growth in retail in North America and hospitality in Europe, both leading growth engines, with a strategic focus on expanding locations and increasing software and payments ARPU, with the other business areas optimized for efficiency and aimed at driving a maximum profitability for the whole business.
The Company-wide transformation to deliver on the new strategy will focus on:
- Go-to-market: enhancing Lightspeed’s go-to-market strategy with targeted outbound efforts, field sales and local marketing expansion, and verticalized execution to maximize efficiency and improve win rates, including deepening supplier integration in focus verticals and deploying AI-driven customer acquisition across retail in North America;
- Product & Technology: investments focused on key growth areas—enhancing inventory management, forecasting, and supplier integration for retail in North America, while optimizing operations, guest experience, and analytics for hospitality in Europe;
- Capital Allocation: transformation initiatives to free up capital for investment in growth areas; and
- Share Repurchase: a share repurchase program to return up to $400 million in cash to shareholders, including the immediate execution of approximately $100 million3 under our current authorization, plus an additional $300 million, in each case subject to market conditions.
PayPal: Our merchants grow after taking a business loan from us
February 5, 2025PayPal is feeling optimistic about its business loan program now that it has been reset on a path toward growth. “As the business matures, PayPal Business Loan offers more traditional merchant financing to match the increasing complexity and multichannel nature of larger businesses,” said CEO Alex Chriss during the Q4 earnings call. “Our business financing solutions increase loyalty and engagement, driving the PayPal flywheel. Merchants typically increase their PayPal volume by 36% after adopting PayPal Working Capital and 16% after taking a PayPal Business Loan. Our merchant lending originations were $3 billion in ’24, demonstrating our leadership and that there’s plenty of room to grow to support our customers.”
PayPal offers this product in the US, Germany, France, the Netherlands, UK, and Australia.
“The PayPal Working Capital product allows businesses to access a loan or cash advance for a fixed fee, based on their annual payment volume processed by PayPal,” the company states. “The PayPal Business Loan product provides businesses with access to short-term financing for a fixed fee or interest based on an evaluation of the applying business as well as the business owner. In the U.S., these products are provided under a program agreement with an independent chartered financial institution.”
Between them, PayPal is one of the largest online business lenders in the US.
BriteCap Financial Ramps Up Team, Ready For Growth
December 20, 2024
The stream of announcements coming out of BriteCap Financial garnered notice. It started with news of a $150M credit facility back in August, followed by announcements of a new CEO, CFO, CCO, VPs, and more. The new CEO, Richard Henderson, whose CV includes previous roles at CAN Capital, Marlin Capital Solutions, and Direct Capital, told AltFinanceDaily that the company wanted to have the right team in place to carefully grow the business. BriteCap, which is part of the North Mill family of companies, offers attractive term loans to small businesses.
As part of the plan, the company is looking to add not just new brokers but the right brokers, especially given the upstream programs they offer to merchants. “We’re being very selective on who we onboard,” said Henderson. “We’re trying to make sure that we’ll use that to get to scale, but also to build powerful relationships with those brokers where it’s a true partnership.”
BriteCap has developed an online checkout system to streamline the funding process. It can be configured to work with however the broker is used to working. They’ve focused a lot on the mobile experience so that a merchant need not even be in front of a computer to go through it.
One notable advantage to BriteCap is precisely that affiliation with the North Mill family because it opens up the possibility of not just working capital as a solution but also equipment finance. According to Henderson, the potential crossover between the products works well especially when the deals have been originated in the right context. That context includes the best practices and professionalism that equipment finance brokers typically operate within.
Among the C-suite executives to recently join BriteCap are Pushkar Choudhuri as Chief Financial Officer and David Lafferty as Chief Credit Officer. The timing of everything aligns with the firm’s economic sentiments. Henderson said that he believes optimism is higher now and growing.
“…generally speaking, we’ve seen demand picking up and we have a pretty bullish view on the economy moving forward,” he said. “I think we’re entering into a very good time in our space.”
Walmart Now a Direct Funder in the Merchant Cash Advance Industry
September 15, 2024
Ready to enjoy easy access to cash advance funds and flexible financing options? Fuel your growth on Walmart.com with our suite of options.
– Walmart.com
Walmart, which made headlines recently with third party MCA funders Parafin and Payoneer, is now funding MCAs directly as well. The new programs, known as Capital by Walmart and Capital for WFS (Walmart Fulfillment Services), were recently placed on its Marketplace page. Capital by Walmart promotes the program as being “1 flat fee” and “Repayment deductions based on your future sales.”
An explainer video that went live on August 1st says that they can fund you themselves or fund you through third parties. Video here:
Further, Walmart’s site states that for their in-house funding, they collect from merchants via their Marketplace payouts each settlement cycle. “In case of insufficient funds in the settlement account, we may debit your bank account,” it says.
A Walmart MCA is invite-only for the time being.
Walmart didn’t raise any mention of its funding programs or partners in its latest fiscal quarterly earnings report but did stress that Walmart Marketplace had grown by 32%.
Shopify Capital MCA, Loan Origination Growth Appears to Slow Down
May 9, 2024Shopify Capital, the funding arm of Shopify that provides merchant cash advances and loans to merchants on its platform, experienced no increase in these related receivables in Q1 compared to Q4 2023. The company typically records significant growth in this figure each quarter. Shopify used to broadcast its origination figures far and wide in each quarterly earnings report and call but has since gotten shy about this segment of its business and no longer discloses originations. Instead, its balance sheet line item for “Loans and merchant cash advances” is virtually all there is to go by now and they were listed at $815M in Q1 vs $816M the prior quarter. This, of course, only reflects anything they’ve kept on balance sheet and could be a misleading indicator if those receivables are being sold off or taken on by a third party.
Shopify’s major rival, Amazon, never disclosed origination figures for its Amazon lending program, and in March announced that it was discontinuing its in-house lending program altogether after a 12-year run.
Shopify is still among the largest online small business lenders in the US.
