How Stripe Capital Works

Stripe Capital is a fast and flexible financing option for eligible UK users processing payments through Stripe. We don’t charge early repayment fees or origination fees. Instead, the total amount you owe is your financing amount plus a fixed fee. Your payments are a percentage of your sales and adjust to your processing volume on Stripe.

Eligibility

Stripe uses a combination of factors, including overall processing volume and history on Stripe to determine eligibility for a financing offer. Eligible UK businesses with at least 6 months of processing history receive an email and Dashboard notification if there is an offer available. Stripe has partnered with YouLend to evaluate UK financing applications.

We evaluate your business daily for eligibility, which includes your fixed fee pricing, based on your processing volume and history on Stripe. While many traditional financial products have hidden fees or compounding interest, Stripe Capital financing has a single fixed fee that you pay back over the length of the financing. You don’t pay interest over time, and we don’t charge early payment fees.

Paying off your active financing offer doesn’t automatically qualify you for a new offer. When you’re eligible for a new offer, it appears automatically in your Dashboard. Eligibility for additional financing offers involves several factors. Typically, eligibility for additional funding is linked to businesses that maintain consistent repayments and have repaid a significant portion of their existing funding.

We assess every business regularly, even those actively paying on a financing offer. Even if you aren’t eligible for a new offer today, you might be eligible in the future. For questions regarding eligibility, contact our partner, YouLend, at stripecapital@youlend.com.

Review your offer

When you log into the Capital tab of your Dashboard, you can use a slider to choose a custom amount (up to the maximum offer amount). The financing fee and payment percentage adjust based on the amount you choose.

Your offer is available for 30 days. After that point, your business is automatically re-evaluated to see if you’re eligible for an additional offer. If you’re seeking financing at a later time, check the Capital tab of your Dashboard to see if you have another offer. We’ll also send you an email if you have an offer.

Apply for financing

After you accept an offer, we review your application. If you’re approved, we transfer the funds to your linked bank account, typically within 1 business day. To make sure funds are disbursed successfully, you must set a valid bank account as your primary payout method.

When you apply, our partner, YouLend conducts a soft credit check as part of your application. This credit check won’t impact your credit score, but might be visible to other organisations carrying out credit searches. If approved, when you receive financing, a hard footprint will be left on your credit record, which will impact your credit score.

Applicants who are the director and a beneficial owner of the business must provide a personal guarantee as part of the application for financing.

Payment

The total amount you owe is your financing amount plus a fixed fee, which is paid throughout the course of the financing. You won’t pay any interest, early payment fees or origination fees. You’ll automatically pay both the financing and the fixed fee through a percentage of your sales until you pay the total amount you owe. This means you pay more when business is busy and less if things slow down.

After you pay your financing, we automatically evaluate your business for a new offer. Paying your financing early doesn’t automatically qualify you for a new offer. When you’re eligible for a new offer, it appears automatically in your Dashboard.

If you’re approved for additional financing offers before you pay off your current financing offer, you’ll receive a standardized payment percentage rate across your active financing offers to match your most recently accepted financing offer. Payment of your newly accepted offer begins once your active financing offer is paid off so you will only pay off one financing offer at a time.

Example: You are currently paying Financing Offer 1 at a 20% payment percentage rate and received additional financing.

If you apply, we approve you for financing offer 2 with a 15% payment percentage rate, we will update the rate for financing offer 1 to 15%. Payment for financing offer 2 begins when you’ve paid off financing offer 1. As a result, your overall payment percentage rate will be 15%.

Taxes

Tax reporting is often dependent on your specific situation, so we encourage you to talk with a tax advisor to ensure appropriate accounting. For more assistance, contact our partner, YouLend, at stripecapital@youlend.com.

All financing requests are subject to final review prior to approval. Financing is provided by YouLend.