harshadante

We’re working with banking partners to originate the loans. We’ll fund some of these loans ourselves, and we’ll also work with investors to help us extend even more capital.

We underwrite our loans based on factors that include your payment volume and history on Stripe. There’s no strict cutoff on how much sales you need to be eligible, but for now we require some payment history with us before we can qualify you for a loan. Eventually, we hope to be able to offer capital to virtually every business on Stripe—even those just getting off the ground!

Just in the US right now. We know the need for capital is global, and we’re working to expand this to EU businesses soon! However, we don’t have a specific timeline at the moment.

Hi there, this is Harsha from the Stripe Capital team. You are correct that the repayment rate (9% in this example) will stop once the loan amount and the fixed fee has been repaid. There are no interest charges or additional fees.

Harsha from the Stripe Capital team here. The loan amounts, repayment rates, and fees shown on the landing page are just used as examples. That being said, the example you walked through is correct: for a loan with a 10% fee and a 12% repayment rate, Stripe will deduct 12% of your Stripe sales until 110% of the loan amount has been repaid.

Harsha from the Stripe Capital team here. Access to capital has been one of our top user asks, and users were excited about the possibility of Stripe leveraging our knowledge of their business to offer them an integrated solution for their capital needs.

As for pricing, the cost of the loan is a single fixed fee that adjusts to the loan amount, and it is paid over the course of the loan—there is no interest rate or additional fees. The effective APR is dependent on how long it takes to repay the loan. We’re priced very favorably compared to alternative lenders.

Harsha from the Stripe Capital team here. We’ve designed the program so that most offers take about 8-12 months to pay back, and therefore the repayment rate would change to reflect that projected duration (which would ultimately impact the APR). The 15% repayment rate you see on the landing page is just an example.

We do think this is a significantly improved overall user experience—it works straight out of your Stripe account. It’s automatic, based on your sales. The cost of the loan is a single fixed fee that adjusts to the loan amount paid over the course of the loan—there is no interest rate or additional fees. The effective APR is dependent on how long it takes to repay the loan.

Harsha from Stripe Capital here.

A ton of entities supply capital to businesses today -- it's one of the largest markets in the world.

We aren't trying to beat anyone else. We're just responding to the need we heard from Stripe users for a product like this. I think how we do it (in terms of how we model the risk profiles of nascent, capital-light internet business; how we present it to customers; etc.) is all pretty neat. But the innovation, if we succeed, isn't going to be in how the mechanics compare to other products. It's going to be in not hearing from Stripe businesses that access to capital is one of their biggest limiting factors.