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Stripe Capital review
A quick way to finance your business — but no upfront details about cost.
Bottom line: Current Stripe users can take advantage of quick funding and standard 18-month repayment terms. But if you don’t have a Stripe account or don’t have an offer lined up, you’ll need to find a different source of funding.
Pros
- 60-day payment cycles
- Daily repayments based on Stripe sales
- No interest — just a flat fee
Cons
- Not transparent about fees and costs
- Early repayment may mean higher effective APR
- Must use Stripe to process payments
Stripe Capital rates, fees and terms
Stripe doesn't disclose the cost of its loans — but it does state that you will only be charged a flat fee. The example it provides on its website is for a fee of 10% of the loan amount. Some previous borrowers on forums like Reddit report that it varied for them based on how much they chose to borrow and the volume of sales they had previously processed through Stripe.
Because repayments are a daily percentage of sales, the effective APR can also vary. This won't effect the overall cost of your loan, however. But if you repay your loan more quickly because of an increase in sales, your loan term will be shorter than the maximum 18 months. This will increase your APR, but the flat fee and total cost of your loan will remain the same.
How Stripe Capital compares to other lenders
Stripe relies on your business metrics with its platform to determine your loan. To compare more flexible lenders, select your desired loan amount, annual revenue, time in business and personal credit score range. Then choose Show loans.
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Stripe Capital reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.1 out of 5 stars, based on 108 customer reviews |
| BBB customer complaints | 460 customer complaints |
| Trustpilot Score | 3.6 out of 5 stars, based on 4,784 customer reviews |
| Customer reviews verified as of | 14 December 2020 |
Stripe Capital doesn't have many specific reviews — but Stripe itself has quite a few negative reviews. Business owners have had problems contacting customer service and frequently complain about how Stripe handled issues with software. Others have had much more positive experiences, although they aren't as detailed about what went right when dealing with customer service.
How to qualify
Stripe determines your business's eligibility by analyzing sales data, including your processing volume and history with Stripe. It states that qualified businesses will have at least 12 months of processing history, but it doesn't disclose other factors it considers.
However, it doesn't consider your credit score and won't perform a credit check as part of the application process.
How the application works
Stripe Capital doesn't have a traditional application process. Because it uses your sales data to determine your eligibility, you won't need to apply at all. Instead, you'll receive an offer on your Stripe dashboard or through your email.
Stripe typically prepares three options for you to choose from, and you also have the option to customize your loan up to the maximum offered amount. The loan fee and repayment rate will depend on the amount you borrow.
You have up to 30 days to make a decision. Once you make a selection, funds are deposited directly into your Stripe account — usually within one business day.
If you don't have an offer available, Stripe allows you to submit your interest in the program for future consideration.
Repayment options
Stripe only has one repayment option: Automatic daily withdrawals from your account. The amount collected is a percentage of your Stripe sales — although Stripe doesn't disclose the percentage it takes — and will vary day to day.
The minimum payment consists of your principal and the loan fee, and a minimum payment is due every 60 days. If you meet the minimum payment through your daily sales, there's nothing left for your business to do. If you don't meet your minimum payment, Stripe will deduct the remaining amount directly from your Stripe account or bank account.
What sets it apart
Stripe isn't just a lender — it's a payment-processing platform with tools designed for small businesses. So while its lending policy is rather strict, it offers a variety of options to help you make the most of its services. If you don't use Stripe, read our review on its payment processing system to see if its right for your business.
Established Stripe users can take advantage of the Stripe Capital program. Everyone else will need to compare business loans for more ways to fund your small business.
Frequently asked questions
Our answers to more questions you might have about Stripe Capital.
Are loans issued by Stripe Capital?
No. While Stripe Capital services your loan, it's technically issued by Celtic Bank, Member FDIC.
Will paying more than my minimum payment lower my next payment?
No. Although paying more than the minimum payment each 60-day period will lower your total principal owed, the minimum payment owed will not change. For example, a $2,000 minimum payment will never change — even if you pay $2,500 during one payment cycle.
No. Stripe users with a strong history of repayment may be eligible for additional funds to their current loan, but Stripe Capital only allows users to have one loan at a time.
Review by
Kellye Guinan
kellye.guinan@findercrew.comKellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for anyone to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise — and maintaining a Duolingo streak of over 1,300 days.
Expert review
Stripe Capital is best for business owners who have been using the platform for at least 12 months. Since there is no application, strong sales volume is the only way to qualify for a loan. The process is quick, however, and there’s no hassles when it comes to making repayments.
But the sooner you repay the loan, the higher your effective APR could be. Stripe doesn’t receive many positive customer reviews, either. And worst of all, rates aren’t transparent. You won’t know how much using Stripe Capital will cost your business until after you receive an offer.
If you haven’t found an offer on your Stripe dashboard, look into other loan options to fund your business.