Payments Processor Stripe Introduces Lending Service for Web Based Firms September 9, 2019 September 9, 2019 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsSeptember 9, 2019 by Kelly Cromley

Payments Processor Stripe Introduces Lending Service for Web Based Firms

Stripe, an online payment processor, is launching lending service under the new business name Stripe Capital. The lending service is offered to internet firms in the US. Notably, as per blog post, funds are released a day after the approval of the loan.

The media release the benefits offered by the facility:

“Stripe Capital’s full integration with Stripe means there’s no lengthy application, eligibility is determined quickly, funds hit a user’s Stripe account the next business day, and businesses can repay as they earn. […] In addition to serving Stripe users directly, Stripe will also extend Stripe Capital to its platform partners (such as online store builders and B2B SaaS companies), enabling them to offer their own business users access to smart financing.”

Stripe Capital’s algo looks at “hundreds of relevant signals for each business, including payment volume, percentage of repeat customers, payment frequency, and changes in revenue growth.”

Repayments are preset and carried out without human intervention as a pre-determined percentage of daily sales and there are no periodic interest payments or late charges.

The San Franciso, California-based firm further elaborated that access to the facility is not restricted to businesses which are straightaway running on Stripes. Will Gaybrick, Stripe’s chief product officer, described the significance of providing funds to small businesses.

“It’s important to think about financial inclusion not just in terms of consumers, but also in terms of businesses. Businesses, especially small businesses and startups, are the engines for job creation in our economy. It should be trivially simple and lightning fast for them to access the capital they need to smooth their cash flow and invest in their own growth.”

Interestingly, Stripe is also partnering with Facebook in the latter’s Libra project, which involves the development of a stable cryptocurrency pegged to low-volatility assets. In January, Stripes stopped supporting Bitcoin (BTC), citing huge fees and naming multiple altcoins as better feasible alternatives.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.