This article is relevant to US customers only.Overview
Stripe Capital is a financing solution offered through Stripe, providing businesses with business financing based on their sales history. This service offers loans with a single flat fee instead of traditional interest rates, and repayments are automatically deducted as a percentage of daily sales*. Eligible businesses are reviewed daily, and offers are sent via email. For more details or to inquire about Stripe Capital, please contact support-capital@stripe.com.
In case you are looking for general information on available payment options through Stripe Express, please refer to this article.
Eligibility
GotPhoto businesses are automatically reviewed for eligibility on a daily basis, and Stripe will email you if your business qualifies for an offer. The criteria for eligibility are based on a number of factors, including your transaction volume and history with GotPhoto.
Eligible US businesses will receive an email to apply if and when they are elligible.
Offer Structure
If eligible, you will receive an email with your personalized offers, and you can choose the one that works best for your business. Each offer will outline:
- Financing Amount: The dollar amount that will be deposited into your bank account.
- Flat Fee: The fee you will pay over time in exchange for the financing amount – there are no other fees or compounding interest.
- Total Amount Owed: The sum of the financing amount and the flat fee.
- Repayment Rate: The percentage of your daily card transactions processed through GotPhoto that will be withheld to repay the total amount owed.
Here is an example of an offer you might receive from Stripe:
Financing amount: 17,000 USD
Flat fee: 1700 USD
Total amount owed: 18,700 USD
Repayment rate: 12%
If you accepted the example offered above and were approved, you would receive 17,000 USD in the bank account associated with your GotPhoto account within 1–2 days, along with your usual payout. Stripe would then withhold 12% of your daily transaction total in addition to the usual processing fees until you have paid the total amount owed of 18,700 USD (the 17,000 USD advanced plus the 1,700 USD flat fee).
Repayment
You will automatically repay the financing over time through a percentage of your transactions according to your repayment rate. The repayment process will begin automatically 1-2 business days after the funds have been deposited into your account. The more card sales you process through GotPhoto Payments, the faster you will repay the loan.
You can make a manual payment in addition to the withheld amounts if you prefer to repay faster or repay the entire outstanding balance. There are no additional fees for early repayment.
Repaying early does not guarantee subsequent financing offers. Accounts are automatically reviewed daily for additional offers, and Stripe will email you if you qualify for any additional offers.
You are expected to repay a minimum amount every repayment period. That period will be determined during underwriting and based on the total term of your loan offer. If the total payments deducted from your sales cover the minimum payment requirement, you will continue to pay back your loan through a percentage of your transactions. However, if payments deducted from your sales over that period happen to fall below the minimum payment requirement, you will be required to pay the remaining amount. Stripe automatically debits your bank account or account balance for the balance needed to meet your minimum payment. You can view your minimum payment amount in your Stripe Dashboard or in your loan agreement.
A daily summary of your repayment progress will be displayed on your loan overview page.
The Takeaway
Stripe Capital provides flexible business loans based on your sales history with a flat fee instead of interest. Repayments are automatically deducted from daily sales*. For more information about Stripe Capital, please contact support-capital@stripe.com.
Loans are issued by Celtic Bank and powered by Stripe. All loans are subject to credit approval.
*You'll have a minimum amount due each repayment period, and if the total amount that you repay through sales doesn't meet the minimum, your account will automatically be debited for the remaining remount at the end of the period.