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PayPal, PayPal, PayPal…

If you are in the E-commerce world, you know that most Dropshipers or sellers in general, are not the biggest fans of PayPal. Don’t get me wrong they are great for customers but they can cause a headache to merchants and sellers.

So today we will dive in the PayPal world and see what info/steps people sometimes forget. 

So sit back, open your notebook, read carefully, and start taking notes:

1 – Opening a Business Account: The Basics

You have to first have a business, it can be a Partnership, Public company, Private company, Not for profit organisation, or a Government entity that has a registered business address and how lucky you are that its part of our Ecom package at Launchese. If you have it covered then you can start the process with visiting https://www.paypal.ae, or the correct country where you want to open your PayPal account in, you click Sign Up’ and ‘Business Account, then ‘Next’.

In the next step, you have to enter a Business email address specifically used for business, it contains the company name in it like employeename@companyname.com, it is where the payments will be sent and will be visible to the customers so no funny names.

2 – Business information

The next part is where you provide PayPal with all your business info so fill it very carefully, the account holder will have the full authority of the PayPal account, to act on behalf of the company, he can also add sub-users to the account, with varying permissions that are determined by the account holder, that person will also have to provide proof of identity for KYB.

The account holder will also have to use his residential address in the Home address section. 

3 – Stakeholders

If your business has stakeholders then you are required to provide their information and a copy of the stakeholder’s Photo ID later, If there is more than 1 beneficial owner, those who own 25% or more of the company then you need to add them all. But If the stakeholder does not own any percentage of the company, then just enter 0 in the Ownership Percentage box.

4 – FATCA 

I know what you are thinking “What the hell is a FACTA?”, well FACTA ladies and gentleman stands for Foreign Account Tax Compliance Act and its a U.S. law that seeks to prevent U.S. tax evasion by using offshore accounts. This law requires financial institutions such as PayPal to report on accounts held outside the United States but belong to U.S. persons. If a merchant is a non-U.S. PayPal account holder, they will need to provide additional information to PayPal and certify the address and non-U.S. status.

You can access it by clicking on the ‘Summary’ tab and you will be presented with a red alert, click the blue link with “collect additional information”, this is very important so please read it carefully before answering because if you do not complete the information your account will be restricted after 90 days, If you find yourself unsure about any question just click on the ‘Learn More’ link, for more info.

5 – Bank Account details

Something a lot of people face a bit of difficulty in, the bank account you will be linking with your Business PayPal has to be in the name of the business entity registered on the account i.e in your company’s name. Then you will see at the bottom that PayPal will require to send 2 small deposit amounts (less than £1.00GBP) to that bank account and retrieve them back in 1 withdrawal. This is done to confirm your bank account and can take and it can be completed in a few minutes and sometimes can take up to a few hours.

6 – (KYB) documents

Lastly, you will need to have the KYB documents or as PayPal call them the Know Your Business documents and they are very simple:

  • You have to get the Letter of Authorisation signed by selected Account Holder and anyone else added with money moving permissions. 
  • You need Proof of ID for the account holder, it can be a Driving licence, passport, or just a government-issued identity card.
  • If you have anyone else added with money moving permissions or is a beneficial owner/stakeholder they will too need to provide proof of ID just like the account holder.
  • A Copy of a recent bank statement for the bank account which is being added to the PayPal account (This is a requirement for government entities).

Dropshipping in a COVID-19 world

By now you probably already know about the novel coronavirus (COVID-19), unless you’ve been living under a rock, it seems like it’s everything everyone talks about either on social media, television or while sitting having lunch. But what you don’t know is how it affects a certain category in business, Dropshippers.

If you are a Dropshipper then you better start taking notes now.

1- Delays, delays, and delays…

Countries all over the world have taken safety measures like restricting movement between cities or other countries, meaning there will be a delay in handling and shipping mail, so make sure to communicate with your supplier before taking orders and understand more about the situation and the level of restrictions implemented in their country.

You’ll also need to be prepared to receive and offer partial or full refunds for the products that didn’t reach their destination. Plus, you need to be very honest and clear with your customers and have a notification in your Return and Refund policy pages, alerting them of the situation and to expect delays.

2- What are the safety measures that I should take with the packages and products?

At this point in time, the WHO has still not found any evidence that the virus can be transmitted through parcels. Only that it can be transmitted from human to human through droplets while sneezing or coughing.

But, some researchers found that it can live up to two days on some surfaces. So you should still take preventative measures and sanitize your products and packages.

3- When can warehouses and manufacturies return to normal?

Unfortunately, at this point in time, they’re still no specific date as to when things might return to normal, each country is dealing with the crisis in their own way. Some manufacturers in countries like China are gradually resuming their operations, but it’s still not with the same level as before, but in other countries like Italy and Spain who were hit very badly by the virus are just easing down their travel restrictions little by little and are considering allowing tourists back in July, but everything can change in one moment if they see a spick in cases again.

4- Is there any relief plan I can benefit from?

With the lockdown restrictions, a lot of businesses will be facing a lot of financial difficulties, so governments like in the United Kingdom released schemes like the COVID-19 relief plan for businesses and the self-employed and recently they announced the Bounce Back Loan Plan.

You can read more about the two plans here :

https://www.launchese.com/2020/04/23/uk-government-covid-19-relief-plan-for-businesses-and-the-self-employed

5- When can things go back to normal?

Unfortunately, no one knows, and with no vaccine, we now have to learn to live with it with listening to medical professionals and governing bodies. Also, things are changing gradually so you need to keep yourself informed from reliable sources and not miss anything business-related.

For more information please check out the sources :

https://newsroom.ucla.edu/releases/covid-19-through-air-contaminated-objects

https://www.gov.uk/government/collections/financial-supp

https://www.businesssupport.gov.uk/faqs/ort-for-businesses-during-coronavirus-covid-19

Bounce Back Loan Plan

Businesses all across the UK were dreading the Lockdown extension announcement, which was inevitable when you see the high death toll numbers in the UK, since it means more financial trouble for them. But they don’t have to worry anymore, because they also announced that there will be a new addition to the UK Government Relief Schemes that help small businesses, who had their livelihood affected by the Covid-19 pandemic, and that is the Bounce Back credit Plan.

The UK government is trying to facilitate the process by giving the certified moneylenders, like TIDE Bank, a 100% assurance for the credits that they will be given, considering that the plan can help you obtain from £2,000 up to £50,000 of your yearly turnover for as long as six years.

I know the first question you’re asking yourself is where should I apply to receive this loan? But that’s too simple and getting relief loans is anything but simple.

And that’s why we’re here to answer the questions that you should be asking instead:

Who’s qualified for this plan? Who’s not?

First, to be qualified for a Bounce Back credit plan your Business, that should already be established in the United Kingdom before the 1st of March 2020, has to have been put under financial strain by the pandemic, wasn’t facing any ‘financial difficulty‘ on 31 December 2019 and makeshalf, or more, of its revenue from trading.

You won’t be qualified for the loan if you’ll use the credit for anything other than venture capital or reinvesting it in your business. And since this scheme is for small businesses it’s only understandable that they won’t accept you if your business is Bank or an insuring company, a public primary or secondary school.

Or you’re already benefiting from the Covid-19 relief package for businesses and self-employed, but in case you have loaned up to £50,000 you can transfer it under this new Bounce Back credit plan you only need to arrange it with your money lender until a deadline of 4 November 2020.

How much interest will be on this loan? Are there any additional fees I’ll have to pay? 

Moneylenders were already guaranteed a 100% reassurance for their credits by the UK government so they won’t be charging loanees any fees concerning the credit they’ll be taking. They also get the benefit of not paying any interest for the first year but after that period is done they will be required to pay a 2.5% a year.

That was not that difficult, right? But now we are in the part that you should’ve been asking last:

Where should I apply to receive this loan?

If after reading all of the above and you found that your business is eligible for the Bounce Back Plan then you should apply on the British Business Bank website. 

For more information please visit:

UK Government COVID-19 relief plan for businesses and the self-employed

As soon as the government announced the safety measures against the spread of the coronavirus, or as the WHO calls it COVID-19, many businesses and the people that rely on self-employed incomes started worrying about their livelihood. But it turns out the UK Government was introducing a £330bn relief package for businesses and a support scheme for the self-employed.

Now to the important thing, how will you Find if your business is eligible for Government support? and which package are you eligible for?

Firstly, the people that can benefit from the government relief package, are the self-employed, sole traders, limited companies and larger organizations. And to assist you to find out what Government aid package you might be eligible for, Tide developed a checker chatbot to help simplify the process: 

https://landbot.io/u/H-433415-I2H3OH1M5VF6S5J6/index.html

You can also do it to more than one Business if you have more.

To summarize it, The Government coronavirus support package consists of these measures for small companies and self-employed individuals:

  • Small business grants and self-employed income support relief 

The Small Business Grant plan intends to grant up to  £10.000 to small companies and businesses that already depend on small business rate relief or rural rate relief, which aims to keep primary services in rural areas available.

Small and medium-sized businesses in the United Kingdom will also be provided a Business Interruption Loan Scheme, loans that can reach up to £5 million, which will help fund them, especially if they had their profitability interrupted by wasted or late revenue caused by the coronavirus outbreak.

As for Eligible self-employed employees, it will be a relief that can take up to £2,500 a month. But they’ll first need to have had filed their tax reforms for 2018-2019, an 80 percent tax of their total monthly gross income over the last three years.

  • Rates and Grants for Retail, hospitality and leisure businesses in England

This Grant Scheme is applicable to businesses that deal with retail, hospitality, and leisure, with a rate value that’s between £15,000 and £51,000, won’t be rated for the tax year 2020-2021. These businesses will not need to apply or do anything, it will automatically be added to their council tax bill of April 2020.

  • HM Revenue and Customs (HMRC) payment plan

It’s a scheme made for Businesses and self-employed individuals or groups in financial hardships and who owes money to the HMRC. These companies and people may be eligible for support or even getting a longer period of time to repay what they owe to the HMRC.

To check if you are eligible for these benefits please visit: https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#support-for-businesses-through-deferring-vat-and-income-tax-payments

For more information please check out the sources :

https://www.gov.uk/government/collections/financial-supp

https://www.businesssupport.gov.uk/faqs/ort-for-businesses-during-coronavirus-covid-19

https://www.gov.uk/business-support-helpline