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USA Today reports that PayPal has launched a new financing business, called PayPal Working Capital, that "will offer loans to online merchants, through Utah-based WebBank, that will be underwritten based on their PayPal sales history. No credit check is needed, the company noted.

"PayPal said that merchants will be able to get the loans in a few minutes and the money is re-paid when the businesses generate sales that are processed through their PayPal accounts. Rather than charging an interest rate, PayPal charges a fixed fee for the financing, the company added."

The story goes on to say that "banks and other providers of loans for merchants pulled back after the 2008 financial crisis, leaving an opening for alternative sources of financing. The combination of fast-growing online shopping and a lack of credit for small businesses has created strong demand for new types of financing among sellers that ply their trade on Amazon.com, eBay.com and other online marketplaces."
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