PayPal service targets SMBs

PayPal’s Business in a Box launched May 1, 2017, during National Small Business Week. It is a comprehensive set of resources and services for small and midsize business (SMB) owners. The solution includes social media support by WooCommerce and online accounting services by Xero. PayPal said the service is part of a broad objective to serve the small business community through financial services and tools to help them start and grow their businesses.

Startup businesses don’t always have the web design capabilities to develop an online store or know how to set up online or POS payment methods, PayPal representatives stated. PayPal Business in a Box is designed to solve these logistical challenges while helping merchants manage finances, obtain a real-time view of cash flow and acquire customers through an online store.

The service can also help established business achieve an online presence and obtain a PayPal Working Capital business loan, part of PayPal’s commitment to becoming a true partner to merchants and “not just a button on their websites,” PayPal stated. PayPal Working Capital has funded more than $3 billion in loans and cash advances to more than 115,000 business owners since the service was launched in 2013, the company added.

“Starting your own business can be an exciting and rewarding experience,” PayPal noted on its website. “But we hear from small business owners time and time again that it is also very daunting. Starting an online business involves planning, making key financial decisions and setting up an online store. And once the business is up and running, there’s cash flow to monitor, inventory to track and the often tedious process of finding capital to grow.”

One-stop shop

“PayPal’s Business in a Box is hardly a revolutionary concept,” said Chad Otar, Chief Executive Officer of New York-based Excel Capital Management Inc. “Square is already providing working capital financing, merchant services and website support. These kinds of one-stop shops may appeal to millennials and business owners who want fast, easy and simple services under one roof.”

Otar said the most prepared startups, with industry experience and comprehensive business plans, may not fully anticipate the complexities and costs of running a business. He noted that advertising and marketing alone are critical during the startup phase for companies to establish a presence and stay ahead of their competition. “Website development, paid ads, and social media marketing is a big job, and hiring a team of professionals can be pricey,” he added. “Having enough business capital to cover these expenses can help tremendously.”

Small business owners may also need working capital to build infrastructure; fund research and development; obtain inventory, business permits and licenses; and hire and train employees, Otar said. While some aspects of business management can be outsourced, it’s important to have a plan for the working capital they borrow and the infrastructure they outsource. He advised that SMB owners seeking capital do the math, have clear objectives from the very beginning, and determine whether short-term strategies will deliver a solid return on investment and help them scale their businesses.

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