PayPal Working Capital vs Shopify Capital (2026): Fees, APR and Terms Compared
Short answer: Compare cost and size first. PayPal Working Capital: One fixed fee, not published; about 25% to 34% APR in our example; $1,000 to $250,000; up to $400,000 for repeat borrowers. Shopify Capital: Fixed fee (e.g. 13%) or monthly fee (e.g. $1,400 on $100,000); Up to $2M. The table and profiles below show who each one suits. Figures come from our full reviews of PayPal Working Capital and Shopify Capital.
PayPal Working Capital vs Shopify Capital at a glance
| PayPal Working Capital | Shopify Capital | |
|---|---|---|
| Lender type | Sales-based loan from WebBank, offered through PayPal | Platform-embedded business loans (U.S.) |
| Products | Working Capital; PayPal Business Loan (separate) | Fixed-fee or monthly-fee loan; Capital Flex (U.S. early access) |
| Amounts | $1,000 to $250,000; up to $400,000 for repeat borrowers | Up to $2M |
| Cost | One fixed fee, not published; about 25% to 34% APR in our example | Fixed fee (e.g. 13%) or monthly fee (e.g. $1,400 on $100,000) |
| Term | No fixed term; 90-day minimum payments | Up to 18 months |
| Funding speed | Decision in seconds; funds within minutes | Review in 1 to 3 business days; funds in as little as 2 business days |
| Founded | 1998 (PayPal); business lending since 2013 | 2016 (program); Shopify Inc. 2006 |
| HQ | San Jose, CA | Ottawa, Ontario, Canada |
| Status | Active (2026-10-26); not offered in ND or SD | Active |
Choose PayPal Working Capital if
Best for: Online sellers who run at least $15K a year through a PayPal Business account (90+ days old) and want cash in minutes without a personal credit check, with repayments that shrink when sales do.
Choose Shopify Capital if
Best for: Shopify stores with 90+ days of steady sales that already see a Capital offer in their admin and want inventory or ad money in days, with no credit check and payments that shrink on slow days.
Who should skip each
- PayPal Working Capital is not for: Businesses that don't process mainly through PayPal, need more than $250K on a first loan, or want to know the price before applying. A bank line or SBA loan will usually cost less if you qualify.
- Shopify Capital is not for: Stores without an offer (there is no open application), sellers whose revenue mostly runs off Shopify (offers are sized only on Shopify sales), or anyone who will repay fast: a fixed fee cleared in six months costs far more per year than a bank line.
Lender List verdict
PayPal Working Capital: PayPal Working Capital is one of the easiest ways for a PayPal merchant to get funded, and repayment is highly flexible in slow months because payments are a share of each sale. The trade-off is a fee you only see after applying: a 9.5% fee repaid in about 6 months works out to roughly 34% APR. Shopify Capital: Shopify Capital is the easiest money a Shopify merchant can get, and repayment flexes with daily sales, within 6- and 12-month minimums and an 18-month cap. Our 13% fixed-fee example repaid in about six months is roughly 48% APR, so use it for a specific purchase you can model.
Frequently asked questions
Which is cheaper, PayPal Working Capital or Shopify Capital? PayPal Working Capital: One fixed fee, not published; about 25% to 34% APR in our example. Shopify Capital: Fixed fee (e.g. 13%) or monthly fee (e.g. $1,400 on $100,000). Your actual cost depends on the offer and how fast you repay, so convert any quote with our factor rate to APR calculator. Which funds faster, PayPal Working Capital or Shopify Capital? PayPal Working Capital: Decision in seconds; funds within minutes. Shopify Capital: Review in 1 to 3 business days; funds in as little as 2 business days. How much can I get from PayPal Working Capital or Shopify Capital? PayPal Working Capital: $1,000 to $250,000; up to $400,000 for repeat borrowers. Shopify Capital: Up to $2M. Read the full reviews: PayPal Working Capital review · Shopify Capital review. Figures come from those reviews, which cite the lenders' own pages and third-party sources; see our methodology. Updated 2026-10-27. Pricing varies by offer; confirm with the lender before applying.