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Merchant cash advance marketing guidelinesPrivate preview

Learn about marketing requirements for merchant cash advances (MCAs).

Copy page

A merchant cash advance (MCA) is a purchase of a merchant’s future receivables, not a loan. Unlike loans, MCAs do not include features such as an absolute right to repayment, minimum payments, or a fixed term. When discussing MCAs, it’s important to avoid using loan-related terminology or concepts to ensure clarity and compliance.

This guide outlines the parameters for accurately and compliantly representing Stripe Capital MCAs in your marketing materials and other user-facing content.

Stripe must approve all marketing content before you go live with it. You can submit proposed marketing material to Stripe’s compliance team for review using the Compliance Intake Form.

Marketing materials to review and update

Terminology guidelines

Below are sets of acceptable and unacceptable types of terms for an MCA program. These terms aren’t exhaustive. They serve as general guidance to help you market MCAs transparently and reduce the likelihood of receiving revision requests during our user-facing copy review process.

AcceptableUnacceptable
How to describe an MCA productMCAs aren’t loans. Refer to MCAs as “[merchant] cash advances”, “MCAs”, or “financing”.Don’t state or suggest that the MCA is a loan or credit product.
How to describe the MCA transactionMCAs are a sale of a merchant’s future receivables. Refer to such as “receivables purchased by Stripe”, “receivables sold to Stripe”, “unpaid receivables”, or “unpaid / unused advance amount”.Don’t refer to receivables purchased as an “obligation”, “debt”, “amount owed”, or similar terms.
How to describe payment termsPayment is made through withholding on transactions. Refer to this as the merchant “transferring receivables through withholding”, “transferring purchased receivables”, or “making payment toward the financing.” There should be no bank debits in an MCA program.Don’t use terms like “repayment” or “repay”, which can imply a debt that is being repaid. Don’t use or refer to bank debits.
How to describe the duration of an MCAMCAs don’t have a finite term (for example, there’s not a “maturity date” or “final payment” date), and there can be no enforced payment schedule for MCAs, including minimum payments.Don’t use terms like “due”, “past due”, “minimum payment”, “late payment”, “default”, “payment window”, or any terms that suggest there’s a payment schedule.
How to describe servicing of MCAsMCAs aren’t subject to “collections.” Except in limited scenarios, slow downs of payments (including stopping payment of the MCA altogether) aren’t events of default.Don’t use terms like “collections.”
How to handle non-paymentMCAs involve assuming the risk that if a merchant’s business slows down, the MCA provider doesn’t get paid.Don’t suggest that Stripe can set off unpaid advance amounts from the Stripe balance, linked bank account, or otherwise pursue such amounts absent a breach of the user’s financing agreement.

Besides the change of financing type, there are other notable differences with the MCA program compared to the loan program:

  • Though personal credit checks still aren’t required for Stripe Capital loans, the MCA program involves a soft pull on consumer credit of the business representative. So even though personal credit still isn’t impacted if a user takes financing, claims that the Capital program doesn’t involve a personal credit check are no longer valid and should be removed.
  • Though personal guarantees still aren’t required for Stripe Capital loans, personal guarantees are established with beneficial owners of users as part of accepting MCA financing. Any representations that the Capital program doesn’t require a personal guarantee should be removed.

Required disclaimers

All marketing collateral must mention our banking partners Celtic and YouLend. You must add the following disclaimer on any user-facing materials wherever you reference Stripe Capital, such as promotional offer emails and marketing pages. The disclaimer doesn’t need to be the same font size as the marketing message, but it must be clear, conspicuous, and in a font color or drop shadow that’s in contrast to its background.

The table below lists the required disclaimer based on the location of your user’s business. For financing offer emails sent by your platform via the Capital API, the API field disclaimer_variant identifies the required disclaimer.

CountryRequired disclaimerCapital API disclaimer_variant
USStripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the US, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances. See your Dashboard for the terms of your offer.celtic_us_loan or youlend_us_mca
UKAll financing applications are subject to review prior to approval. In the UK, Stripe Capital loans and merchant cash advances are provided by YouLend.youlend_uk_mca

Description of financing product differences

  • Merchant cash advance: A merchant cash advance is a purchase of a merchant’s future receivables by YouLend. It’s not a loan or credit transaction. Purchased receivables are withheld from the merchant’s payment processing volume in a percentage specified in the YouLend Advance Agreement. Unlike a loan, there’s no fixed payment schedule or periodic debits. Instead, a merchant’s payments vary based on payment processing volumes.
  • Loans: Business-purpose term loans are made by Celtic Bank to eligible merchants. These loans have a maximum term, and periodic payments. If withholdings from payment processing receivables don’t meet a minimum amount (typically on a 30 or 60-day basis), shortfalls are debited from a linked bank account.

Sample copy

This is only applicable if you send offer emails from the Stripe Capital API. You don’t need to take any action if you use Stripe hosted no-code emails for financing offers.

We suggest taking a look at the samples below for insights on how to market your financing program, which can be used for all financing offers, including loans and MCAs.

Financing offer email (first offer, all users)

Subject line:Access up to [offer amount] in financing to grow your business
Preheader:[Business name] is prequalified—apply in a few clicks

Body Copy:

Access flexible financing with one flat fee for whatever your business needs. Businesses use Stripe Capital to manage cash flow, buy inventory, invest in marketing, and more.

How it works:

  • Simplified application: Apply in a few clicks – applying won’t impact your personal credit score.
  • No surprises: Know what you’ll pay from day one with one flat fee. No compounding interest, late fees, or early payoff fees.
  • Funds in days, not months: If approved, funds are transferred to your Stripe account in as little as one to two business days.
  • Automatic payments*: Payments are made automatically through your Stripe account, so you can focus on growing your business instead.

If you have any questions, you can learn more about the program here [add link to your landing page or How it works].

View your offer [add button or link to offer]

– The [Platform name] team

Footer:

This offer is available until [expiration date].

This email was sent to [customer email address]. If you’d rather not receive this kind of email, you can unsubscribe from future financing offer emails. [add unsubscribe link]

[US only] *Stripe Capital loans have a minimum amount due each payment period. If the amount that you pay through sales doesn’t meet the minimum required, your bank account will be automatically debited the remaining amount at the end of the period

Input required disclaimer here

Program landing page

Example: Stripe Capital | Loans and Cash Advances for Small Businesses

H1 HeaderGet fast funding for your business – with [Platform Name] Capital
H1 SubheadQuick access to funds to help grow your business–without the hassle of traditional loans.
CTA 1Check eligibility
CTA 2Explore the docs | FAQs
H1 Image[Platform Name] Capital UI
H2 HeaderHow it works
H2 SubheadFast funding and flexible payments
Value Prop 1Simplified application process - apply in a few clicks! Eligibility is based on factors like your payment volume and history on [Platform Name].
Value Prop 2Get funds quickly. If you’re approved, receive your funds in as little as one to two business days directly into your linked account.
Value Prop 3Clear terms–no surprises. You’ll view terms up front when you select the offer amount that’s right for your business, so you’ll know exactly what to expect from [Platform Name] Capital.
Value Prop 4Pay as you earn for stress-free financing. With [Platform Name] capital, you automatically pay the loan or merchant cash advance with a fixed percentage of your daily sales until the total amount is paid.
H3 HeaderUse funds to support your business’s growth
H3 SubheadIf approved, access flexible financing for anything your business needs.
Value PropInvest where it matters most, whether that’s purchasing equipment or new inventory, investing in marketing, or managing cash flows, [Platform Name] Capital gives you the financial support to grow.
Value PropTailored solutions for your business – funding offers are based on your business’s performance data, providing personalized offers to meet your specific business needs.
Value PropCustomize the size of your financing offer based on your business needs.You’ll only pay the cost of your financing plus one flat fee that never changes, there are no compounding interest charges or late fees.
Financial DisclaimerStripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the US, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances. In the UK, Stripe Capital loans and merchant cash advances are provided by YouLend.

Wording guidelines

  • You can’t reference “repayments”
  • “Loan” is only mentioned in conjunction with “cash advance”
  • Mention of Celtic and YouLend as financial partners
  • If you want to optimize SEO around the word “loans”, you must do so compliantly, similar to the following example: “Pay as you earn. You’ll automatically pay the loan or merchant cash advance with a fixed percentage of your daily sales.”

Other user-facing materials

To inform users about the difference between MCA and loan products, you must show the following information on any program-related details pages (for example, FAQs and help center articles) or marketing emails related to your program (excluding offer emails, if applicable). You can either include the copy sections directly, link to How Stripe Capital works, or link to a similar page hosted by your platform.

Financing types

Each offer specifies the type of financing being offered, which might be a loan or merchant cash advance. You can’t request a particular financing type under the Stripe Capital program.

  • Merchant cash advance: A merchant cash advance is a purchase of a merchant’s future receivables by YouLend. It’s not a loan or credit transaction. Purchased receivables are withheld from the merchant’s payment processing volume in a percentage specified in the YouLend Advance Agreement. Unlike a loan, there’s no fixed payment schedule or periodic debits. Instead, a merchant’s payments vary based on payment processing volumes.
  • Loans: Business-purpose term loans are made by Celtic Bank to eligible businesses. These loans have a maximum term, and periodic payments. If withholdings from payment processing receivables don’t meet a minimum amount (typically on a 30 or 60-day basis), shortfalls are debited from a linked bank account.

Financing payments

Stripe Capital financing is generally paid through withholding from payment processing receivables at a rate specified in your financing agreement. Depending on your financing type, there may be periodic minimum payment requirements and a finite term.

Specifically, if you took out a loan, you must pay a minimum amount toward your loan every payment period.

No impact to your personal credit

Applying for financing through Stripe Capital might require a personal credit check under some circumstances, but this credit check doesn’t impact your personal credit score. If a personal credit check is required you will be notified during the application process. All offers are determined based on a number of factors, including order volume and your history of orders through [Platform Name].

Wording guidelines
  • Financing types (loan and MCA) are defined
  • Loan features (for example, minimum payments) are still included, but associated with statements that describe the features that are specific to loan financing
  • Acknowledges that a personal credit check might be applicable
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