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Full Shopify Credit Review: Are the Cashback Rewards Legit? 

By Joe

Shopify Credit Review

If you landed here, you may have received an invitation to apply for a “Shopify credit card.” And, since this offer was only unveiled a few months ago, you’re not going to find a lot about it on Reddit or other forums. 

Not only this, but if you try searching for details about the card, you’ll mostly see Shopify’s own marketing content, reviews that may have been written by affiliates, and information about Shopify Capital (which is a separate offer)

…This is probably going to change in the future as the Shopify Credit offer has time to spread its wings. Still, you need to know more about the card before you apply or accept an offer.

→ Recommended: 7 Best Cash Back Corporate Cards to Explore

So, here, I’m going to explain the offer and a little bit about the company, share some features and benefits of the card, and compare it to some close competitors. Then, I’ll answer a few of the top questions people are asking. 

Here’s what’s in store: 

  • What is Shopify Credit?
    • Business Credit vs Corporate Cards
    • Shopify Company Overview
  • Shopify Credit Features & Benefits
    • Shopify Credit Card Terms & Fees
    • Cashback & Bonus Offer
    • Shopify Credit Requirements
  • Shopify Credit Alternatives
  • Frequently Asked Questions
  • Conclusion: Is This Card Offer Worthwhile?

 Let’s dive in! 

What is Shopify Credit? 

Shopify Credit login

Shopify Credit is a pay-in-full, so-called “business credit card” tailored for entrepreneurs — It offers a straightforward and transparent financial solution with no fees, no interest, and up to 56 days to pay for purchases. 

Considering the way the card is set up, it’s actually a corporate card, not a business credit card (more on that in a minute). 

Shopify Credit is designed to support business cash flow with a flexible spending option for everyday business expenses, such as: 

  • Marketing and Advertising
  • Shipping and Fulfillment
  • Wholesale

Shopify sellers can easily check their eligibility online and receive quick decisions based on business performance rather than credit scores. And, they can enjoy the convenience of a Visa®-branded card accepted pretty much everywhere globally (i.e. wherever Visa is accepted). 

The card also comes with the added benefit of cashback rewards, allowing users to earn up to 3% cashback on eligible purchases in their top spend category and 1% on the other two categories. With no catch and a focus on simplicity, Shopify Credit aims to empower businesses by providing a reliable and rewarding financial tool.

Recommended: Best eCommerce Credit Cards (Online Seller’s Guide)

Business Credit vs Corporate Cards

Business credit cards and corporate cards serve distinct purposes in the realm of business financing. Business credit cards are typically designed for small to medium-sized enterprises and individual business owners, offering a convenient and flexible means of covering day-to-day expenses. They often come with features like cashback rewards and expense tracking. 

On the other hand, corporate cards are generally intended for larger enterprises and are issued to employees for company-related expenses. Corporate cards may come with more extensive expense management tools and customization options tailored to the specific needs of large organizations. 

Shopify credit gives you the best of both worlds. Still, the offer is more closely related to contemporary corporate card offers than business credit cards, which allow you to carry a revolving balance.  

You might also like: What’s the Best Payment Processor for a Small Business? Really

Shopify Company Overview

Shopify Finaning for Merchants

Established back in 2004, the Canadian powerhouse known as Shopify (aka Shopify Payments or Shopify Data Processing, if you’re feeling fancy) has grown into a publicly-traded juggernaut valued at $1.3+ billion. 

Every online merchant has heard about their game-changing online sales platform that’s been rocking the eCommerce scene. Now, I won’t dive too deep into the intricacies of Shopify’s credit card processing capabilities or the Shopify credit card reader. 

Instead, let’s shine a quick spotlight on the backstory of Shopify Credit. 

Shopify’s initiatives kicked off in April 2016, when they started offering merchant cash advances, and since then, they’ve pumped out billions in funding for sellers worldwide. Shopify Credit was launched more recently in July 2023.

It’s worth noting that all the financial mojo behind Shopify Capital comes courtesy of WebBank, a player affiliated with the likes of Dell Business Credit, LendingClub, and Capital on Tap (not my favorite business funding offers). 

Meanwhile, Shopify Credit is issued courtesy of Celtic Bank, a modest brand with a tremendous reach. 

Recommended: Shopify Capital Review: What are the Benefits & is it Worth it? 

Shopify Credit Features & Benefits

Okay, are you ready to dive into the details? Here’s a summary of who can qualify for Shopify Credit and everything you can expect if you pull the trigger on this one. 

You might also like: What are the Best Unsecured Business Credit Cards for Startups? 

Shopify Credit Card Terms & Fees

Shopify Credit Card Fees

Shopify Credit is essentially free:

  • No annual fee
  • No foreign transaction fees
  • No setup fees

This offer is all about straightforward transactions to help keep more money in your business.

With up to 56 days to settle bills (net 56) and zero late fees, Shopify Credit offers a relaxed payment period, giving you ample time to manage your business finances. This can help you manage your finances pretty easily.  

Many tradelines like this report on-time payments to credit bureaus. I couldn’t find out any information on the Shopify website about whether on-time payments are reported to credit bureaus. So, I first reached out to Celtic Bank who referred me back to Shopify. 

Does Shopify Capital run your credit?

According to Shopify’s AI chat assistant, on-time payments on the Shopify Credit card are not reported to business credit bureaus. I’m not 100% confident in the accuracy of this answer, so if you know otherwise, please let me know. 

FInally, over time, you can watch your credit limit expand as your business succeeds – Periodic reviews ensure your credit line grows with your business, which offers some financial flexibility without constant paperwork.

You might also like: Using 30 Day Net Vendors to Build Your Business Credit Score 

Cashback & Bonus Offer

Shopify Credit Cashback rewards

In addition to being a free card, Shopify Credit offers cashback and bonuses. 

With this card, you can earn rewards customized to your business essentials: 

  • 3% cashback on your top spending category
  • 1% on the other two, recognizing your business efforts.

There is a catch here, though — a pretty big one. In order to earn rewards, you must use your card for spending in the three approved categories (marketing and advertising, shipping and fulfillment, and wholesale). 

How Does Shopify Credit earn money?

Card spending must take place with one of Shopify’s partners to qualify for cashback: 

CategoryProviders
Marketing & advertisingGoogle, Meta, TikTok, Pinterest, Snap, Twitter, Microsoft, Shopify Email, Klaviyo, Mailchimp, Instafeed, Yotpo SMSbump, Yotpo product reviews and UGC, Yotpo subscriptions, Yotpo loyalty and rewards, Loox, Privy
Shipping & fulfillmentUSPS, UPS, DHL Express, Flexport, Pirateship, Shopify Shipping, Shopify Fulfillment Network, Shipsurance, Shipstation, Shippo, Aftership order tracking, Aftership shipping + labels, Aftership returns, Parcel Panel Order Tracking
WholesaleFaire

Chances are, if you’re successfully selling on Shopify, you are spending with some of these brands — so, the Shopify Credit card gives you a chance to earn/save on some of that spending. 

Shopify also advertises a $2K Shop cash welcome bonus for eligible spending — as of today, this is still up on the website: 

Shopify Credit $2000 intro offer

Sadly, this offer expired on October 31, 2023…if you accept a card offer after this date, you will not qualify for the $2K welcome bonus (I triple-checked). 

Shopify Credit welcome bonus has expired

As with most corporate and credit cards, there will probably be more introductory offers in the future – be sure to keep your eyes peeled…and always read the fine print. 

You might also like: This is How to Leverage Business Credit to Transform Your Life 

Shopify Credit Requirements

Shopify Credit eligibility requirements

You might be pleasantly surprised to learn that Shopify does not do a credit check. Shopify Credit is offered by Shopify to eligible merchants. Merchants don’t necessarily have to seek it out actively; instead, Shopify may extend offers to qualified merchants based on their business performance, so you don’t need a particular credit score to qualify. 

But, you do need a few other things: 

  • A Shopify Payments account with a single owner
  • A bank account connected to the Shopify Payments account
  • A valid United States Social Security number
  • A business located in the United States or Puerto Rico 

You may receive notifications or invitations to apply for Shopify Credit, and the application process is typically straightforward. Eligibility is based on your business performance, and decisions can be made within minutes.

Shopify Credit Alternatives

Shopify Credit card alternatives

I’ve reviewed quite a few free corporate fintech cards here on this blog, and a handful of them are very close contenders with Shopify Credit: 

  1. While I don’t like to play favorites, my favorite corporate card is Divvy – I have this card, I use it, and I love it because of its user-friendly features and expense management tools.
  2. Brex is another super popular corporate card. You’ll need a high-performing business to qualify. And, if you get this card, you’ll have the opportunity to save on business expenses like travel and online advertising.
  3. Next, Stripe Corporate is a close contender and may be a better fit if most or many of your Shopify store transactions are run through the Stripe payment platform. This card offers features tailored for Stripe users, but it’s available by invitation only, with specific requirements.
  4. This list would be complete without Ramp, which focuses on providing real-time insights into your company spending and helps control costs.
  5. While the next card wouldn’t be my top choice for most online sellers, Bank of America’s Corporate Card is worth mentioning here because of its benefits and rewards, especially if you’re already using BoA for business banking.

The best card for you is going to depend on your current setup, whether or not you’re willing to make some changes, and how quickly you need access to a corporate card. 

Recommended: In-Depth Divvy (BILL) Credit Card Review: Read This Before You Apply 

Frequently Asked Questions

How does Shopify give you money?

Shopify offers two types of merchant funding: Shopify Capital and Shopify Credit. Shopify Capital provides funding through merchant cash advances based on sales history, with repayments tied to a percentage of daily sales. Shopify Credit, on the other hand, offers a fee-free credit card with cashback rewards, providing additional funds for business expenses based on sales performance. Both options give eligible merchants access to capital to support their business growth.

Does Shopify Credit affect your ability to qualify for Shopify Capital?

No, applying for Shopify Credit does not impact your Shopify Capital eligibility. The two operate independently, allowing merchants to leverage both financial tools to support different aspects of their business needs.

What is the Shopify Credit card fee?

The Shopify Credit card is fee-free, with no annual fees, foreign transaction fees, or setup fees. This transparent fee structure aims to provide simplicity for merchants, allowing them to focus on their business without concerns about additional charges.

Will a Shopify Credit card help you build business credit? 

No. Shopify Credit is not technically a credit card and on-time payments made toward your account balance will not be reported to business credit bureaus. 

Conclusion: Is This Card Offer Worthwhile? 

Wrapping it up, Shopify Credit and its cashback rewards seem to be a pretty legit deal under the right circumstances — The card offers a straightforward, fee-free experience with up to 56 days to settle bills, and zero late fees. 

While the card is relatively new and might not be buzzing just yet, it offers simplicity, quick eligibility check, and no credit score hassles. These features make it a solid choice for some online sellers. 

The cashback adds a nice touch, providing cardholders with tangible benefits for their business spending – but it’s a shame they’re still advertising the bonus offer when it’s actually unavailable. And, I am not stoked that the card doesn’t report payments to credit bureaus.  

With that said, I still like Divvy, and I would choose it over Shopify Credit, depending on whether or not my operations were the right fit. In full transparency, I’m not a Shopify seller, I’m a business credit coach and investor. 

If you want to learn how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today!

Shopify Capital Review: What are the Benefits & is it Worth it? 

By Joe

Shopify Capital Review

eCommerce merchants who need a boost in cash flow have probably considered Shopify Capital as a source of funds. Are you wondering if you should accept a funding offer from Shopify? …I can help you decide!

In this post, I’m going to dive into exactly what Shopify Capital is, eligibility requirements, why you may or may not want to apply for an offer, and introduce some alternatives you may want to consider. 

Here’s what’s in store: 

  • What is Shopify Capital?
    • Company Overview
    • What are the Benefits of Shopify Capital?
  • Shopify Capital Loan Summary
    • Shopify Capital Eligibility Requirements
    • Shopify Capital Terms & Repayment
    • How to Apply for Shopify Capital
  • Shopify Capital Alternatives
  • Frequently Asked Questions
  • Conclusion: Is Shopify Capital Funding Worth it?

So, let’s roll! 

What is Shopify Capital? 

Does Shopify Capital charge interest?

Shopify Capital is like your online store’s financial wingman. It swoops in to offer cash advances to businesses that are rockin’ it on Shopify. If your store has a good track record and plays nicely with the Shopify platform, you might just be eligible to request a cash boost. 

This extra dough can be a game-changer – you can use it for all sorts of things like: 

  • Investing in more inventory
  • Revving up your marketing
  • Setting up shop in a physical store
  • Bringing in some extra hands to help out

So, Shopify Capital is essentially designed to help you scale your business.

But, there are tons of financial offers out there that can help you do this. How do you know if this is the one? Keep reading. 

Recommended: Behind the Scenes of Become.co: A Comprehensive Review 

Company Overview

Is Shopify a billion dollar company?

Founded in 2004, Shopify, aka Shopify Payments, aka Shopify Data Processing is a Canada-based, publicly-traded for profit company worth $1.3B. The company is leading the eCommerce game with their token online sales platform (but you already knew that, didn’t you?). 

I won’t delve too deep into Shopify’s app store or Shopify Plus – the enterprise eCommerce platform – but, I do want to take a quick look at the history of Shopify Capital. 

The company launched Shopify Capital in April 2016, as a merchant cash advance offer. Since then, they’ve provided billions of dollars in funding to their sellers worldwide. 

All Shopify Capital loans are funded by WebBank, which is also affiliated with Dell Business Credit, LendingClub, and Capital on Tap. While these aren’t my favorite funding offers for business owners, they are legitimate offers. 

Recommended: 41 Companies That Help Build Business Credit [Beyond Net 30 Vendors] 

What are the Benefits of Shopify Capital? 

Shopify Capital cash advance

Shopify Capital offers several benefits to eligible businesses:

  1. Quick, easy access to up to $5M – Shopify Capital simplifies the funding process. If your business qualifies, you can access the funds you need swiftly, which allows you to capitalize on opportunities or address financial challenges without lengthy approval processes.
  2. No fixed repayment schedule – One of the perks is that repayments are tied to your daily sales. This means that when your sales are high, you’ll pay back more. But, during slower periods, the repayment amount decreases, making it more manageable.
  3. No personal guarantees – Unlike some traditional loans, Shopify Capital doesn’t typically require personal guarantees (PGs), which reduces your personal financial risk.
  4. Customized funding – Shopify Capital tailors the funding amount to your business needs based on factors like your store’s history and performance.
  5. Invest in business growth – You can use the funds to invest in your business, with the goal being to increase your future profits.
  6. Transparent fees – The costs associated with Shopify Capital are straightforward, so you won’t encounter hidden fees or surprises.

These benefits make Shopify Capital an attractive option for Shopify merchants looking to fuel their business growth and address financial needs with flexibility and convenience. Now, let’s take a look at the actual details of the loan and how it stacks up in the lender marketplace. 

Now, let’s explore the cash advance offer in more detail. 

You might also like: What’s the Best Payment Processor for a Small Business? Really

Shopify Capital Loan Summary

Shopify Capital loan overview

When deciding whether a Shopify Capital loan is right for you, I think it’s most important to look at eligibility requirements, terms and repayment, and alternatives. So, let’s look at each of these facets of the offer.

Note: These details relate to the U.S. offer only. For other countries, see the Shopify help center. 

Shopify Capital Eligibility Requirements

Shopify Capital has certain eligibility requirements to qualify for its merchant cash advances in the U.S. 

To be eligible, your business should meet the following criteria:

  • Use Shopify as your sales platform – You need to be a Shopify merchant, which means your business should operate on the Shopify platform to apply for Shopify Capital.
  • Location – This program is available specifically for businesses in the United States, so you should be operating within the U.S. to be eligible (comparable offers are available for businesses in Canada, Australia, and the U.K. as well).  
  • Sales history – Shopify Capital considers your store’s history, which means businesses with a track record of sales on the platform are more likely to qualify.
  • Risk profile – The amount you can receive and the remittance rate depend on your risk profile. Factors like your store’s performance, sales, and other business metrics are assessed to determine this.

Remember that eligibility doesn’t guarantee funding, but meeting these criteria is a good start if you’re looking to access funds through Shopify Capital. It’s like a helping hand for businesses that are already up and running on Shopify in the United States.

If you have more questions or need further information, feel free to ask!

Shopify Capital Terms & Repayment

When Shopify Capital offers you a cash advance, it’s like giving your business a boost of cash. They’ll hand you a lump sum of money, and you pay it back from your daily sales. No need to stress about a fixed schedule for repayments. Instead, it’s a percentage of your daily sales, which is called the remittance rate.

Now, about those fees – the terms are pretty straightforward. 

Shopify Capital Trustpilot

Shopify Capital tells you upfront how much they’ll take for the cash they give you. So, let’s say they give you $5,000, and the fee is 10%. You’ll pay back a total of $5,650, which includes the initial $5,000 plus the 10% fee. 

Payments are automatically deducted from your daily sales, so you don’t have to worry about missing an installment. You can also choose to pay off the balance whenever you like – it’s all pretty flexible.

And the best part? 

No rush to pay it all back…there’s no set deadline. It’s all based on your daily sales, so when business is good, you pay more, and when it’s slower, you pay less. 

Easy peasy, right? Well…not so fast. 

Before you jump in head-first, consider how consistent your sales have been, and whether or not you anticipate any slow periods. 

Shopify Capital Reddit

If you’re unsure, you may not want to get in over your head. Shopify does have the right to collect their funds, even if your customers decide to hit the road and go somewhere else (it would be unfair if they didn’t).

Overall, Shopify Capital’s terms are what I would expect from any cash advance offer. And, their factor rates of 1.1 and 1.13 are reasonable, with other offers being as high as 1.5 and beyond.  

How to Apply for Shopify Capital 

Shopify Capital customer service

Applying for a Shopify Capital cash advance is a super straightforward process: 

  1. Log In to Shopify – If you have a Shopify store, log in to your account.
  2. Find Capital – Look for the “Capital” section in your Shopify settings.
  3. Pick an option – They’ll show you choices for how much money you want and how you’ll pay it back. Choose the one that works for you.
  4. Verify who you are – They’ll need to make sure you’re really you, so be ready to confirm your identity.
  5. Say yes to the rules – Read and accept the rules they give you. It’s like agreeing to the terms.
  6. Switch to Shopify Payments (if needed) – If you’re not already using Shopify Payments, they might ask you to switch to it.
  7. Submit your request – Hit the button to send in your request. Now, wait a bit for them to look it over (usually 1-3 business days).
  8. Get your money – If they say yes, they’ll put the money in your business bank account within two business days.

That’s it!…Ready to explore other options before you make that final decision?  

Shopify Capital Alternatives

While there are a ton of merchant cash advance options available, I’m most familiar with three of the most reputable. So, let’s compare Shopify Capital, Stripe Capital, and Credibly’s offers. 

Shopify CapitalStripe CapitalCredibly Financing
PlatformExclusively for Shopify merchantsAvailable for Stripe usersOpen to various businesses
EligibilityRequires a history with ShopifyBased on your Stripe activityOpen to businesses with requirements
Funding SpeedQuick approval and fundingRapid approval and fundingQuick funding decisions
RepaymentDaily percentage from salesDaily percentage from salesFixed daily or weekly payments
Repayment FlexibilityFlexible based on daily salesAdjusted based on salesFixed repayment schedule
FeesFixed fee determined upfrontFixed fee determined upfrontFees based on risk and terms

Each of these cash advance options has its own strengths and caters to different business needs. 

Shopify Capital is ideal for Shopify store owners seeking flexible, sales-based repayments. Stripe Capital is for Stripe users and offers rapid funding. Credibly offers financing to a broader range of businesses but with varying terms based on risk.

Now, a merchant cash advance has never been my go-to for business funding – You have many other options that are often more ideal. 

For one, traditional loans are like the ones you get from banks and credit unions, often cheaper but harder to secure because they require a strong credit history and collateral. And, business lines of credit work like credit cards for your business, offering flexibility, but interest rates can fluctuate. Both of these are pretty standard, and you can get into these types of funding when you maximize your business credit. 

Recommended: This is How to Leverage Business Credit to Transform Your Life 

Next, SBA loans, backed by the government, come with good rates and reasonable monthly payments, but their complex application process can be challenging. Then, online business loans, like offers from Become, Lendio, or Fundbox – provide quick funding but may have fairly high costs. 

Moreover, crowdfunding and peer-to-peer lending let you seek funds online, but success isn’t guaranteed. Finally, if you have personal savings or assets, you can use them, but it involves a risk to your personal finances.

Recommended: Y Combinator: Fast Track to Success or Waste of Time? 

Remember, the best choice depends on your specific business situation and preferences. So, consider your needs and the terms that suit you best when deciding.

Frequently Asked Questions

Can you negotiate Shopify Capital? 

No. Shopify Capital offers fixed terms, including fees and repayment percentages, which are not negotiable.

How long does it take for Shopify Capital to be approved? 

The approval process typically takes 1-3 business days, but in some cases, it might take longer.

What percentage of profits does Shopify take? 

Shopify Capital takes a fixed fee, which is determined upfront. The percentage varies based on your specific cash advance offer.

What company owns Shopify? 

Shopify is an independent company, and it’s publicly traded on the New York Stock Exchange and the Toronto Stock Exchange. It has been shareholder-owned since 2015. 

Conclusion: Is Shopify Capital Funding Worth it? 

In most cases, I don’t recommend merchant cash advances for business funding, because the fees tend to be super steep, and better options are usually available. With that said, Shopify Capital does have a reputable offer with fair terms…Plus, it’s super easy to pay back one of these cash advances (how long that takes will depend on your sales). 

So, if you like the offer, your business is located in a region where it’s available, you meet the other eligibility criteria, and you really need the money now, go ahead and apply. 

Also, If you’re interested in learning how to get up to $100K in business credit in as few as 30 days, join Business Credit workshop today.  

Could a Stripe Capital Loan Get Your Business Through a Rough Patch?

By Joe

Businesses are always in need of working capital. Now, we need it more than ever. So, I wracked my brain for one of the best solutions I know of (that we haven’t written about previously) that would be especially helpful for businesses in the current economy. And, the first resource that came to mind was Stripe Capital. 

I’m seeing a lot of business owners who were working on their personal credit to get ready for new financing to grow their companies before the COVID-19 pandemic disrupted commerce in ways we never saw coming. And, the reason this option was at the front of my mind is that the company doesn’t require a personal guarantee, which is rare.

So, what’s this mean for you? 

Here’s what’s in store:

  • What is Stripe Capital?
    • How much working capital can you get from Stripe?
    • Does Stripe report on-time payments to credit bureaus?
  • Stripe Capital Eligibility Requirements
  • Stripe Capital Repayment Terms
    • How much will you pay?
  • Frequently Asked Questions
  • Conclusion

If this information could be helpful at this difficult time, keep reading. 

What is Stripe Capital? 

For those of you who aren’t familiar with Stripe Capital, it is a business financing service that Stripe, known for its payment processing solution, offers to its existing users. The company gives customers next-day access to funds for daily operations based on their transactions. Think of it as “Stripe working capital.”

Like many other working capital services, the funds can be used to purchase new equipment, pay employees, or any other activity that will help you maintain or grow your business. Yet, the program varies in several ways from other comparable services. To learn more, keep reading. 

When you accept an offer for a Stripe Capital loan, the company will not make a decision based on your personal or business credit. Instead, capital offers are based on transaction volume and history of payments processed through your Stripe account. So, if you are a current user, this could be just the solution you need to keep your doors open through a dilemma.

You Might Also Like: Shopify Capital Review: What are the Benefits & is it Worth it?

How much working capital can you get from Stripe? 

The company website advertises loans in the amount of $15K, $20K, and $25K. But, you are not necessarily limited to a single loan. Some customers with existing loans will have the option to apply for another loan after making payments toward the original funding amount. And, you can pay off your loan at any time. 

Since Stripe’s fees are fixed based on the size of the loan taken, you would receive no cost hardship or benefit (i.e. lower interest payments) from paying early. And, this could potentially open you up to a new financing offer from Stripe sooner than if you were to pay the funds back as agreed. 

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

Does Stripe report on-time payments to credit bureaus? 

Stripe does not require a credit check for funding approval. The capital program seems to have no relationship with D&B or any of the personal or business credit bureaus. So, this type of financing will not help you boost your credit score. Merchant cash advance companies are not required to report to credit bureaus. 

Note: If you need to build credit, it may be better to start with Net30 vendors that report to credit bureaus. However, you won’t have the freedom to use the funds outside the companies that finance your purchases. 

Have you heard about the free Stripe Corporate Card benefits?

Stripe Capital Eligibility Requirements

Stripe Capital requirements are still in the evolution stage. As of right now, funding is offered to select merchants. Yet, this is expected to change.

As of today, if you have not received an email from Stripe or a notification in your dashboard that invites you to accept an offer for funding, you may not qualify. However, you can let the company know that you are interested in the program. Even if you’re not sure you will accept when the time comes, now might be a good time to get your name added to the list. Visit https://dashboard.stripe.com/capital to register your interest. 

Register Interest in Stripe Capital Loan

The system is powered by a machine-learning API that looks for certain eligibility criteria. These criteria include sales volume and transaction history. And, this works with low credit barriers because of the repayment structure. 

You might also like: What’s the Best Payment Processor for a Small Business? Really

Stripe Capital Repayment Terms

Repayment for Stripe Capital doesn’t look like what you’re probably used to if you’re only familiar with loans and credit cards. Actually, payments are set up more like a merchant cash advance (MCA). Instead of paying a set amount each billing cycle, your loan is paid back daily from a percentage of your online sales. 

Repay Stripe Capital Loan

So, one day, you may make a payment over $1K, the next day, if you have no sales, you don’t make a payment. Smaller loans will have a smaller daily percentage take out than larger loans. These numbers might range from 9% to 15% of daily transactions. And, when you don’t make a payment, there will be no penalty. This is a super convenient repayment option for anyone. 

How Much Will You Pay? 

Obviously, no financial service comes without a cost, so here’s the catch. You will pay a set fee on top of the amount of your loan. While the fee will vary, here’s what you can expect. 

Amount of Stripe Capital Loan

The set fee that you will pay for your loan might be around 10%, according to the current advertising. So, a $15K Stripe cash advance might cost about $1,500. Does this stack up to the existing competition? Take a look for yourself. 

MCA CompanyAdvance Fee Fees for $15K LoanFees for $30K Loan
Stripe~10% ~$1,500~$3,000
Lendio18%+ $2,700+$5,400
Fundbox4.66%+$699+$1,398+
CanCapital 3% + $595 $1,045$1,495

As you can see from the table, each MCA provider has varying fees. And, their repayment terms can range from 5-20% of daily transactions. Slow repayment with a company offering a variable rate can cost a lot in the long run. 

Frequently Asked Questions

What is Stripe Capital

Stripe Capital is a merchant cash advance offered to select, existing Stripe customers. They offer next-day access to funds that can be repaid as a percentage of daily sales.

Does Stripe do a credit check?

For Stripe Capital, no — Stripe does not do a credit check. Instead, offers are extended to high-volume transactions that take place on the payment platform.

Does Stripe offer financing?

Yes! Stripe offers financing to existing users based on transaction history. Stripe Capital and the Stripe Corporate Card are two options.

Conclusion

It’s always been crucial to keep enough capital on-hand to power your operations. And, if you’ve been affected by the situation, you know why. If you are a high-volume seller and existing business customer, Stripe Capital may have just what you need to move forward and keep your doors open or even scale your business as you planned.

While merchant cash advances (MCAs) aren’t my go-to for recommended business funding, this is a legit offer for Stripe users who need funds quickly. With that said, do your due diligence and shop around before you accept a financial offer from any lender.

And, if you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today!


Business Credit Blog

· Recommended Resources
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