PayPal credit refers to an open-ended credit card account from PayPal which gives you an inbuilt reusable credit line. It is a ‘bill me later’ option that gives you the flexibility to make purchases and pay for them immediately or over a period of time. The credit line is easily accessible and can be used whenever you need it. In this article we guide you on how to use PayPal credit to buy stock for your Amazon FBA business.
How Do You Apply For PayPal Credit?
Applying for PayPal credit is not a complicated process. There is a short application form that requires you to fill in your details. These include your date of birth, income after tax and the four last digits of your Social Security number.
Once you have filled in your details you will be asked to agree to their terms and conditions. The application will then be subject to the approval process and in a matter of seconds you may be able to access a credit limit of more than $250.
In some cases, you may be given a small bonus of about $10. Once approved, the credit limit will be immediately tied to your existing PayPal account.
How To Use PayPal Credit To Make Purchases
Now that your PayPal credit is available, the first thing you need to do is to log into your PayPal account in order to make purchases. Once you have logged in, click on PayPal credit to access this option for making payments.
You can choose to make a single payment based on your balance or schedule a payment for a later date. One way of using your PayPal credit is to make stock purchases for your Amazon FBA business.
This is a third party seller service which allows Amazon to look after your stock. In this arrangement your stock goes to the FBA warehouse where Amazon picks it and delivers it to your customers.
In order to buy stock for your Amazon FBA business using PayPal credit, you need to go to your PayPal wallet and choose your funding method. You can link with your bank’s direct debit card and also schedule repeat payments for your future purchases.
You can also do a single payment based on your PayPal balance and the available bank account balance. Once you confirm your payment details, the transaction will be executed.
Why Is It Useful To Purchase Amazon FBA Stock Using PayPal Credit?
The FBA (Fulfillment by Amazon) business model has continued to gain popularity. It works in the same manner as the conventional e-commerce business, only it allows Amazon to store your products.
This removes the trouble of having a warehouse as you don’t have to fulfill your orders one by one. It also builds your brand. PayPal credit is quite useful in purchasing stock as it allows you to make larger purchases and pay for them later.
This offers you the economy of scales associated with bulk purchases and also allows you to repay the credit after getting some money in from the sales you’ve made.
Using the PayPal credit option doesn’t affect your credit score and this may be quite useful especially if you are just starting your FBA business. You don’t want to lower your scores over a credit that you could repay over a short span of time (say 6 months).
Of course, you need to work hard and repay the bill before the agreed period expires. This way you don’t incur heavy penalties. You can use the PayPal payment method at thousands of other online stores. This will make it easier for you to purchase more stock.
The PayPal credit option also allows you to hold off payments for your purchases for up to 6 months without paying any interest. This is quite useful as it gives you sufficient time to pay for the purchases without affecting your cash flow.
So now that you know how to use PayPal credit, you have the option to purchase more stock for your FBA business and make more sales.