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What You Need to Know About PayPal LoanBuilder for Business

By Joe

PayPal Loan Builder

PayPal LoanBuilder is advertised as a quick, convenient way to get up to $100K in business funding. The company is more than reputable, and their marketing makes it sound like the easiest financing option in the world. But, what are the terms, how much does it cost, and is this really the best loan for your business? 

Let’s find out what LoanBuilder is, how it works, and explore exactly what you can expect if you apply. 

This is what’s in store: 

  • What is PayPal LoanBuilder?
    • How Much Does PayPal LoanBuilder Cost?
  • How Does PayPal LoanBuilder Loan Work?
    • 1. Apply With No Impact to Your Credit
    • 2. “Customizable” Funding
    • 3. Fixed-Fee Loan
    • 4. Fast Access to Funds
    • 5. Accessible Business Funding
    • 6. Weekly Repayment Terms Up to 12 Months
  • Frequently Asked Questions
  • Final Thoughts

Now, let’s get to it! 

What is PayPal LoanBuilder? 

Loan Builder PayPal

PayPal’s LoanBuilder is a service that offers fixed-term small business loans from $5,000 to $100,000 for first-time borrowers and up to $150,000 for repeat borrowers—the financing option is designed to be fast and flexible, with funds potentially available in your business bank account as soon as the next business day after approval.

The loan comes with transparent pricing, where you pay a clear, fixed fee along with a $20 Returned Item Fee if a payment is returned. There are no late fees, early repayment fees, or processing fees. You can choose a repayment term that suits your business needs, and payments are automatically deducted weekly.

To check if your business is eligible for a LoanBuilder Loan, you can complete a quick online questionnaire. This process won’t impact your personal credit score. If eligible and approved, you can customize your loan amount and term, sign the contract electronically, and receive the funds quickly.

To qualify, your business needs to have been operational for at least nine months with an annual revenue of at least $33,300. Keep in mind that LoanBuilder is a service provided by PayPal in partnership with WebBank. The loan application and approval process is designed to be straightforward and streamlined, aimed at helping businesses manage cash flow, finance projects, or tackle other business challenges.

paypal loanbuilder requirements

A LoanBuilder loan does require a personal guarantee. 

You might also like: Business Credit Cards without Personal Guarantee 

How Much Does PayPal LoanBuilder Cost? 

The cost of a LoanBuilder loan is determined by a single fixed fee known as the Total Loan Fee, which will be disclosed at the time of loan approval and remains consistent throughout the loan term. 

However, since this is a working capital-style loan, you should expect interest rates higher than you would get via, say, your business credit union. Still, they may be lower than other working capital solutions. 

PayPal Loan Builder interest rate

The specific amount of the Total Loan Fee varies based on: 

  1. The loan amount
  2. Repayment term
  3. Financial risk

LoanBuilder Loans do not have additional fees such as late fees, early repayment fees, or processing fees—The Total Loan Fee is the primary cost associated with borrowing and is included in your repayment schedule.

Paypal loanbuilder review

To see your LoanBuilder cost, you’ll need to complete the loan application process and review the personalized terms.

Recommended: 3 Best Credit Unions for Small Business Banking

How Does PayPal LoanBuilder Loan Work? 

LoanBuilder from PayPal offers a pretty simple approach to business financing, providing you with a customizable loan experience tailored to your business needs. 

With LoanBuilder, you have the freedom to: 

  • Access funds quickly
  • Repay with clarity
  • Benefit from straightforward terms 

Let’s delve into the key features that will help you decide if LoanBuilder is the best choice for your business funding.

You might also like: A Deep-Dive National Funding Review: Should You Accept an Offer? 

1. Apply With No Impact to Your Credit

PayPal Loan Builder application

The PayPal LoanBuilder “application” is pretty straightforward. The questionnaire asks you for contact information, how you plan to use the funds, how you heard about the loan, business location, and business details. 

Details to have on-hand about your business include: 

  • Legal business name & DBA (if applicable)
  • Business address & website address
  • Entity type & state of incorporation
  • Annual revenue
  • Business start date
  • Number of employees
  • Industry & sub-industry
  • Percentage of ownership 

The application also asks for your Social Security Number and Employer Identification Number. Luckily, they do a soft inquiry into your personal credit for pre approval, which won’t negatively impact your credit score. 

PayPal Loan Builder soft inquiry

However, you will probably have to approve a hard pull for final approval. 

PayPal Loan Builder Hard Inquiry

Don’t move forward with that until you’re absolutely sure you want this loan.  

You might also like: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options 

2. “Customizable” Funding

PayPal LoanBuilder Customized Loan

LoanBuilder advertises a “customizable” loan—This makes it sound as if you might get to choose your amount, terms, and rate, which would be pretty exciting. 

However, that’s not a realistic way to think about lending; lenders need to assess the financial risk before approving any type of financing. 

Still, after you’re pre-approved for a loan, you can choose your loan amount and repayment term. Your loan fee percentage will increase as your terms are extended. So, the longer you give yourself to pay off the loan, the higher your Total Loan Fee. 

If you do opt for this loan, consider giving yourself some extra time to pay it just in case something unexpected occurs, as you could be charged penalties for failing to pay on-time.  

3. Fixed-Fee Loan

PayPal Business Loan Builder

When you take out a LoanBuilder Loan, you won’t have any upfront fees deducted from the loan amount you receive. Instead, the cost of borrowing—the single fixed fee, known as the “Total Loan Fee”—is spread out and paid gradually over the entire duration (life) of the loan.

Here’s a breakdown of what this means:

  • When you receive the loan amount, the full sum is deposited into your business bank account without any immediate deductions for fees or charges. This ensures that you have access to the entire loan amount upfront to use for your business needs.
  • The cost associated with borrowing the money is represented by a single fixed fee—This fee is agreed upon and disclosed at the time of loan approval; it does not change over the course of the loan.
  • Rather than paying a fee upfront or separately, it is integrated into your loan repayment schedule. Each time you make a repayment towards your loan (typically on a weekly basis), a portion of that payment goes towards covering the Total Loan Fee. This fee is gradually paid down along with the principal amount of the loan.

By structuring the loan this way, you get clarity on the total cost of borrowing from the outset, and you can plan your repayments knowing how much will be allocated towards the loan principal and how much towards the fixed fee. 

4. Fast Access to Funds

PayPal Builder Loan

The LoanBuilder lending process is designed to be fast… 

First, when you check your eligibility, it’s done through a quick online questionnaire. This initial eligibility check does not involve a hard inquiry on your personal credit report, which means it won’t affect your consumer credit score—This is helpful because you can explore loan options without worrying about potential negative impacts on your credit rating.

If your LoanBuilder Loan application is approved, the funds are transferred directly to your business bank account, often by the next business day after approval—This rapid transfer ensures that you can access the funds quickly to address business needs or capitalize on opportunities right away.

5. Accessible Business Funding

PayPal Loan Builder login

The eligibility requirements for a LoanBuilder Loan can be considered relatively low compared to some traditional business loans:

  • At least nine months in business
  • $33.3K annual revenue 

Requiring a minimum of nine months in business is relatively short compared to other types of business loans that might need several years in operation. Newer businesses can access financing sooner in their development stages.

While this amount varies depending on the size and industry of your business, $33,300 annual revenue is a moderate threshold—It’s achievable for many small businesses, including startups and those in their early stages of growth.

These requirements are inclusive and accessible to a wide range of small businesses, including startups and those with modest revenue streams. 

You might also like: Y Combinator: Fast Track to Success or Waste of Time? 

6. Weekly Repayment Terms Up to 12 Months

PayPal Loan Builder Funding

The repayment period for LoanBuilder Loans ranges from 17 weeks (approximately 4 months) to 52 weeks (approximately 12 months), depending on your eligibility and the loan amount you qualify for.

During the repayment period, you will make weekly payments towards your loan balance. 

The amount of each weekly repayment will be set based on: 

  1. The total loan amount
  2. The fixed fee associated with the loan
  3. The chosen repayment term

The weekly repayment amount remains consistent throughout the repayment period, providing predictability in your loan payments.

For example, if you have a loan with a 26-week repayment term, you will make 26 weekly payments until the loan is fully repaid. The amount of each weekly repayment is calculated to cover both the principal loan amount and the fixed fee—this helps you make sure the loan is paid off by the end of the chosen repayment term.

Frequently Asked Questions

Is PayPal legally a bank? 

No, PayPal is not a bank. It is a technology company that provides online payment services and financial solutions.

What bank does PayPal use for loans? 

LoanBuilder loans are provided by WebBank®, Member FDIC, in partnership with PayPal.

What is the minimum credit score for LoanBuilder? 

LoanBuilder does not disclose a specific minimum credit score requirement. Instead, eligibility is determined based on various business factors such as revenue and operational history—but the do require a personal guarantee

Does PayPal LoanBuilder report to credit bureaus? 

Yes, PayPal LoanBuilder reports payment activity to business credit bureaus, not personal credit bureaus. This can help businesses establish and build their business credit profile.

Final Thoughts

PayPal is a trustworthy financial company, with LoanBuilder being backed by a reputable bank. The loans they offer are pretty competitive in the working capital realm, but the high rates are a red flag for me. I never recommend my students take out a loan like this unless there is absolutely no better option—even with a flat fee, weekly repayments can eat at your profits.  

But, if you need to take out a high-interest loan and you’ve explored all of your options, this might be the way to go. If you have some time, I recommend you put some effort into your business credit so you can get loans and lines of credit with (much) better terms…it’s a game changer.  

Do 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!


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