Business Funding

Stripe Capital Review: Does Stripe Offer Loans?

Read Time: 6 min

A woman getting a Stripe Capital loan with a laptop on her lap, sitting on a pile of money.

If your business needs a financial boost, Stripe Capital loans might be the exact solution you’re looking for. Unlike traditional business loans, there’s no application form to fill out for Stripe loans. Instead, you qualify and then simply select an offer directly from the Stripe Dashboard. The great thing about Stripe Capital is the requirements for a Stripe loan are minimal.

In this article, we’ll learn more about Stripe Capital, its pros and cons, pricing, requirements, and the qualification process. Let’s get started!

What Is Stripe Capital?

Stripe Capital is a business loan offered by Stripe to businesses seeking a convenient way to secure funds for growth and expansion. Unlike conventional business loans, it’s specifically tailored to a business’s unique needs, offering loan amounts based on payment volume and business requirements. Furthermore, Stripe loans don’t use traditional interest rates. Similar to a merchant cash advance, you’ll only have to pay a sort of cash advance fee.

Stripe Capital leverages vast amounts of transaction data and insights from businesses through Stripe’s platform. This allows Stripe to evaluate a company’s financial health, revenue trends, and growth potential without prioritizing credit scores or collateral. As a result of its data-centric approach, Stripe is able to provide businesses with tailored loan terms designed to fit their unique financial capacities and growth goals. [1]Stripe. “Stripe Capital Eligibility“. Accessed on September 18, 2023.

Orange money sign inside a gray lightbulb.

Stripe Capital Features

Stripe Capital’s standout feature is its ability to tailor loans to precisely match a merchant’s growth requirements. This means that Stripe provides the exact amount needed, eliminating the risk of borrowing excess amounts that might incur higher fees. It also won’t give you an insufficient amount because Stripe assesses your revenue patterns and consequently knows how much to offer.

Additionally, Stripe Capital doesn’t hinge on credit score checks or demand high revenue. While traditional business loans often require small businesses to maintain a minimum personal or business credit score of 600 and maintain a high level of revenue for eligibility, Stripe helps newer businesses by making loans more accessible.

Lastly, it’s worth noting Stripe’s efficiency: minimal documentation is required, and funds are typically disbursed by the next day.

Pros and Cons of Stripe Loans


  • Minimal eligibility requirements.
  • Swift access to funds by the next business day.
  • Tailored loan offers based on your business’s performance and needs.


  • No direct application process and businesses can only select from presented offers.
  • Potential disruption in cash flow due to automatic repayment structure.
  • Linked to your Stripe revenue, meaning fluctuations in sales can impact repayment amounts.

Stripe Loan Pricing & Repayment Structures

The pricing and repayment structures of Stripe loans vary for each merchant. The loan amount you’re offered is primarily based on factors like your processing volume and your overall transaction history with Stripe. From the “Capital” section of your Dashboard, you can find a slider that lets you choose a custom loan amount up to a specified maximum. Adjusting this amount will automatically modify the fee and repayment rate.

Stripe’s loan repayment structure is simple: the total repayment is the sum of your loan amount and a flat fee. Stripe automatically collects a percentage from your Stripe sales as repayment. As a result, you pay back more when business activity is high and less when it’s low.

Stripe uses a percentage of your sales (the repayment rate) to pay a predetermined minimum. If you don’t pay back this minimum by the end of each payment cycle, Stripe will charge the difference from your bank account. Should you decide to repay your loan early, you can do so without incurring any additional fees.

Stripe Capital Requirements: How to Determine Eligibility

Stripe continuously evaluates your business to determine if you qualify for one of its loans. If you’re eligible for a loan, you’ll receive a notification via email. You can access the offer from the “Capital” tab on your Dashboard. While using Stripe, you may come across a pop-up on the Dashboard indicating that you’re making progress toward a potential loan offer. However, please note that this banner doesn’t guarantee a future offer or the terms of the offer, nor does it constitute a credit decision.

These are the minimal requirements to be eligible for Stripe Capital:

  • Your business must be based in the United States.
  • Your business must’ve been processing payments on Stripe for at least 6 months.
  • Your business’ processing volume has to be no less than $5,000 per year.
  • There are some geographical limitations.
  • Your business must be in positive standing with Stripe Capital—a new loan offer isn’t available for 30 days if your business was rejected for Stripe loans before.

Additionally, Stripe evaluates other factors for Stripe Capital eligibility, including the age of your business, a low dispute rate, consistent processing history, and a well-established customer base.

How to Apply for a Stripe Working Capital Loan

How do you get a loan with Stripe? Well, there’s actually no way to manually apply for a Stripe loan. Instead, you’ll need to wait for an offer on the “Capital” tab within your Stripe Dashboard. Stripe may also notify you of your eligibility via email, so it’s wise to monitor your inbox.

Once notified, navigate to the slider on the Dashboard to select your desired loan amount, which has both a minimum and maximum threshold. The repayment rate and fixed fee will fluctuate based on your chosen loan amount. After making your selection, Stripe will evaluate your request. Upon approval, expect the funds in your account within 1-2 business days.

The loan offer remains valid for 30 days. After this period, your business might receive another offer contingent on a new evaluation of your operations. Before accepting the business loan, it’s essential to thoroughly review the loan terms to ensure they align with the needs and goals of your business.

How Does Stripe Capital Compare to Other Business Funding Options?

Stripe Capital can be an attractive option for businesses that process payments through Stripe and need quick, flexible access to working capital. However, other funding options may be more suitable for businesses with specific needs, larger capital requirements, or better credit profiles. Let’s take a look at other competitors below.

LenderMin./max. loan amountPayment ratesMin. credit score
OnDeck$5,000 to $250,00035.4% APR625
BlueVineUp to $250,0006.2% interest rate625
FundboxUp to $150,0004.66% to 8.99%600
Funding Circle$25,000 to $500,00012.45% to 40.51%660
CrediblyUp to $400,000Factor rates starting at 1.11500

Stripe Business Loans: The Final Verdict

A man talks to a financial advisor about a Stripe working Capital loan.

Thankfully, Stripe Capital provides a convenient route for businesses to acquire funding. Stripe allows you to get a personalized loan offer with minimal requirements. It doesn’t evaluate based on credit score, nor does it necessitate collateral. While you will get your cash pretty quickly, there’s no way to manually apply. You’ll have to wait for an offer to pop up on the Stripe Dashboard or via email. Also, it’s crucial to understand the specific requirements to qualify for Stripe loans. The repayment structure mirrors that of a merchant cash advance, where a percentage of your Stripe sales contributes to your loan repayment.

There are other alternative business loan options with flexible terms and affordable rates. A merchant service provider offers business funding solutions that can give your business the capital it needs to grow. They’ll be able to assist you with finding the right type of funding for your unique situation.

Competitive rates & flexible terms!

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Frequently Asked Questions (FAQs)

Are Stripe loans secured or unsecured?

Typically, Stripe Capital doesn’t ask for collateral for loans up to $150,000 or for loans that are in good standing. Nevertheless, Stripe may file a UCC-1 statement in your business’ state if the loan exceeds $150,000 or is delinquent. As a result, your business assets become secured.

Does Stripe report to credit bureaus?

Stripe Capital reports the loan performance of U.S. businesses to the Small Business Financial Exchange (SBFE). Nonetheless, it refrains from sharing any other financial performance data with the SBFE. The details provided to SBFE aid in creating a financial profile for your business, which might boost its creditworthiness with other credit providers.

Is Stripe Capital considered a lender or a broker?

Stripe is technically a payment service provider (PSP). As such, it offers funding to businesses through Stripe Capital.

Can I apply for more funding with Stripe once my capital loan is paid off?

Yes. Upon settling your loan, Stripe initiates a re-assessment of your business for potential future loan offers. However, an early loan repayment doesn’t automatically render you eligible for subsequent offers.

Article Sources

  1. Stripe. “Stripe Capital Eligibility“. Accessed on September 18, 2023.

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