Merchant cash advance marketing guidelinesPrivate preview
Learn about marketing requirements for merchant cash advances (MCAs).
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.
| Acceptable | Unacceptable | |
|---|---|---|
| How to describe an MCA product | MCAs 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 transaction | MCAs 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 terms | Payment 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 MCA | MCAs 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 MCAs | MCAs 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-payment | MCAs 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.
| Country | Required disclaimer | Capital API disclaimer_variant |
|---|---|---|
| US | Stripe 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_ or youlend_ |
| UK | All financing applications are subject to review prior to approval. In the UK, Stripe Capital loans and merchant cash advances are provided by YouLend. | youlend_ |
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:
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 |
Program landing page
Example: Stripe Capital | Loans and Cash Advances for Small Businesses
| H1 Header | Get fast funding for your business – with [Platform Name] Capital |
| H1 Subhead | Quick access to funds to help grow your business–without the hassle of traditional loans. |
| CTA 1 | Check eligibility |
| CTA 2 | Explore the docs | FAQs |
| H1 Image | [Platform Name] Capital UI |
| H2 Header | How it works |
| H2 Subhead | Fast funding and flexible payments |
| Value Prop 1 | Simplified application process - apply in a few clicks! Eligibility is based on factors like your payment volume and history on [Platform Name]. |
| Value Prop 2 | Get 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 3 | Clear 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 4 | Pay 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 Header | Use funds to support your business’s growth |
| H3 Subhead | If approved, access flexible financing for anything your business needs. |
| Value Prop | Invest 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 Prop | Tailored solutions for your business – funding offers are based on your business’s performance data, providing personalized offers to meet your specific business needs. |
| Value Prop | Customize 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 Disclaimer | Stripe 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