Stripe Capital

Skimmer has partnered with Stripe to offer eligible businesses access to fast, flexible financing through the Stripe Capital program. Read more about this partnership here: Introducing Stripe Capital.

Eligibility and financing types

The Stripe Capital program is fully managed by Stripe. Skimmer businesses are automatically reviewed for eligibility, and Stripe sends eligible providers an email if their business qualifies for an offer. The criteria for eligibility is determined by Stripe and based on a number of factors, including transaction volume and history with Skimmer payments powered by Stripe.

Stripe re-evaluates your eligibility on a rolling basis, so if you’re not eligible today and take steps to move transaction volume from other payment sources to Stripe, you may improve the likelihood of receiving an offer. If you become eligible, you’ll receive a Capital offer email.

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.

Stripe Capital 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.

Stripe Capital 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, shortfalls are debited from a linked bank account.

Offer Structure

If eligible, you’ll receive an email from Stripe with your personalized offers, and you can choose the one that works best for your business. Each offer will outline:

The financing amount: The total amount that will be deposited into your bank account.
The flat fee: The fee you’ll pay over time in exchange for the financing amount. There are no other fees or compounding interest.
The total amount financed: The sum of the financing amount and the flat fee.
The payment rate: The percentage of your daily card transactions processed through Skimmer that will be withheld to pay the total amount financed.

Example offer

Financing amount: 17,000 USD
Flat fee: 1,700 USD
Total amount financed: 18,700 USD
Payment rate: 12%

If you accepted the example offer above and were approved, you would receive 17,000 USD in the bank account associated with your Skimmer account within 1–2 days, along with your usual payout.

Stripe would then withhold 12% of your daily transaction total, in addition to the usual processing fees, until you’ve paid the total amount financed of 18,700 USD. This includes the 17,000 USD financed plus the 1,700 USD flat fee.

Payment

You’ll automatically pay the financing to Stripe Capital over time through a percentage of your transactions according to your payment rate. The payment process will begin automatically 1–2 business days after the funds have been deposited into your account.

If you would prefer to pay faster or pay the entire outstanding balance, you can arrange to make a manual payment in addition to the withheld amounts by clicking the Make Payment button on your Financing Overview page on Stripe. There are no additional fees for early payment.

Paying early doesn’t guarantee subsequent financing offers. Accounts are automatically reviewed for additional offers on a daily basis, and Stripe will send you an email if you qualify for any additional offers.

To see a daily summary of your payment progress, visit the Financing Overview page on Stripe.

FAQs

How does Stripe Capital determine who qualifies for an offer?

Eligibility is determined by Stripe based on a combination of factors, including overall sales volume and history of Stripe payments from Skimmer. Eligible businesses will receive an email from Stripe if they have an offer available.

Do I have to pay interest on Stripe Capital financing?

No. You’ll pay one flat fee that does not change. You won’t pay any interest on top of this fee.

Will applying for an offer affect my personal credit rating?

Applying for financing through Stripe Capital might include a personal credit check under some circumstances, but this credit check doesn’t affect your personal credit score. If a personal credit check is required, you will be notified during the application process.

All offers are determined by Stripe based on a number of factors, including order volume and your history of orders on Stripe through Skimmer.

Can I request a different offer amount?

After clicking the link in your Capital offer email, you will be able to review the offer and use a slider to choose a custom amount, up to the maximum offer amount. The financing fee and payment rate adjust based on the amount you choose.

When do I need to pay the flat fee to Stripe Capital?

The flat fee is included in your payment total, so you'll automatically pay it through a fixed percentage of your sales until the total amount is paid to Stripe Capital.

How does payment work?

Payment is collected automatically by Stripe Capital through a percentage of your Skimmer sales as they are processed. Stripe Capital loans have a minimum amount due each payment period. If the amount you pay through sales doesn’t meet the minimum, your account will be automatically debited for the remaining amount at the end of the period.

If your loan has a fixed payment, Stripe stops withholding from your Stripe sales when you meet the fixed payment amount. The payment terms for your offer will be detailed during the application process.

What is a minimum payment?

For Stripe Capital loans, a minimum payment is the minimum amount that you’re expected to pay to Stripe Capital every payment period. That period will be determined during underwriting and based on the total term of your financing offer.

If your automatic payments do not meet this minimum, you’ll be required to pay the remaining amount at the end of the period. You can view your minimum payment amount in the Stripe Dashboard or in your Stripe Capital financing agreement.

How do I make my minimum payment if one is required?

For Stripe Capital loans, if your payments deducted from sales cover the minimum payment requirement for the payment period, no action will be taken. If you have not met the minimum payment amount by the end of the payment period, Stripe will automatically debit your bank account or account balance for the amount needed to meet your minimum payment. There’s no action needed on your part.

After I accept an offer, how quickly will I get my funds from Stripe Capital?

If your application is approved, you’ll typically see the funds from Stripe Capital in your bank account in as soon as two business days. To make sure that funds are disbursed successfully, you must set a valid bank account as your primary payout method. This needs to be done through Stripe.

Can I have my Stripe Capital funds paid out to a card?

Stripe currently does not support the disbursal of funds to a card. To make sure that funds are disbursed successfully, you must set a valid bank account as your primary payout method on Stripe.

What happens when my Stripe Capital offer expires?

Each Stripe Capital offer is available for 30 days. After that point, your business will automatically be re-evaluated by Stripe Capital to see if you are eligible for an additional offer.

Can I pay my financing early?

Yes. You can make additional payments or pay the total amount financed to Stripe Capital in full at any point by clicking the Make Payment button in your Stripe Capital Dashboard. There are no additional fees for early payment.

Will paying early qualify me for a new offer from Stripe Capital?

Once you pay the total amount financed, you’ll automatically be evaluated for a new offer by Stripe Capital. Paying early does not automatically qualify you for a new offer.

How should I report these funds on my taxes?

Tax reporting is often dependent on your specific situation, so we encourage you to talk with a tax advisor to ensure appropriate accounting. In general, Stripe Capital funds would not be considered taxable income at the time of receipt, and the amounts withheld to satisfy your obligations are not tax deductible.

Who can I contact to learn more about the Stripe Capital program?

If you have additional questions about how the financing program through Stripe Capital works, you can contact our Stripe partners directly at capital-support@stripe.com.

Stripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the United States, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances.