Stripe Capital for US Businesses

MyTime has partnered with Stripe to offer eligible businesses access to fast, flexible financing through the Stripe Capital program. Funding offers are based on existing Stripe payment volume and history, eliminating the need for lengthy applications. Eligible businesses receive a pre-approved funding offer with a single, fixed fee and no compounding interest or hidden costs. Repayment is automated through deductions from daily sales, with payments that adjust to sales volume, higher on busy days and lower on slower days.

This article covers eligibility requirements, offer structure, repayment, and frequently asked questions.

 CONTENTS

• Eligibility
• Offer Structure
• Repayment
• FAQs

Eligibility

MyTime businesses are automatically reviewed for eligibility on a daily basis, and we’ll send you an email if your business qualifies for an offer. The criteria for eligibility is based on a number of factors including your transaction volume and history with MyTime.

Eligible US businesses will receive an email if they have an offer available to apply for.

Offer Structure

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

• Financing Amount: The dollar amount that will be deposited into your bank account
• Flat Fee: The fee you’ll pay over time in exchange for the financing amount – there are no other fees and or compounding interest
• Total Amount Financed: The sum of the financing amount and the flat fee
• Payment Rate: The percentage of your daily card transactions processed through Rocket Rides that will be withheld to pay the total amount financed

Here’s an example offer you might receive:

• Financing amount: 17,000 USD
• Flat fee: 1700 USD
• Total amount financed: 18,700 USD
• Payment rate: 12%
• Minimum Payment: 475 USD

If you accepted the example offer above and were approved, you would receive 17,000 USD in the bank account associated with your MyTime 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 down the total amount financed of 18,700 USD (the 17,000 USD advance plus the 1,700 USD flat fee).

Reayment

You’ll automatically pay the financing 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. The more card sales you process through Rocket Rides Payments, the faster you’ll pay.

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 in your financing overview page. 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 we’ll send you an email if you qualify for any additional offers.

You’re expected to pay a minimum amount every payment period. That period will be determined during underwriting and based on the total term of your financing offer. If the total payments deducted from your sales cover the minimum payment requirement, then you’ll continue to pay back your financing through a percentage of your transactions.

However, if payments deducted from your sales over that period happen to fall below the minimum payment requirement, you’ll be required to pay the remaining amount. Stripe automatically debits your bank account or account balance for the balance needed to meet your minimum payment. You can view your minimum payment amount in the Dashboard or in your financing agreement.

To see a daily summary of your payment progress, see the financing overview page.

FAQs

• How do you determine who qualifies for an offer? 

Eligibility is determined based on a combination of factors, including overall sales volume and history with MyTime. Eligible US businesses will receive an email and Dashboard notification if they have an offer available.

• Do I have to pay interest? 

No, you’ll pay one flat fee that doesn’t 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 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’ll 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 MyTime.

• Can I request a different offer amount? 

When you log into your MyTime Dashboard, you can 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? 

You’ll automatically pay the flat fee through a percentage of your sales until the total amount financed is paid. The fee isn’t charged up-front.

• How does payment work? 

Payment is collected automatically through a percentage of your MyTime sales as they’re processed which means you pay down more when business is busy and less if things slow down. As long as you meet your minimum payment requirement, what you pay each day adjusts to your sales.

• What’s a minimum payment? 

For loans, a minimum payment is the minimum amount that you’re expected to pay every payment period. That period will be determined during underwriting and based on the total term of your loan offer. If your automatic payments don’t 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 Dashboard or in your loan agreement.

• How do I make my minimum payment? 

If your payments deducted from sales cover the minimum payment requirement for payment period, no action will be taken. If you’ve not met the minimum payment amount by the end of the payment period, for loans, Stripe will automatically debit your bank account or account balance the balance 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? 

If your application is approved, you’ll see the funds in your bank account typically in as soon as 2 business days. To make sure that funds are disbursed successfully, you must set a valid bank account as your primary payout method.

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

We currently don’t support 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.

• What happens when my offer expires? 

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

• Can I pay my financing early? 

Yes, you can make additional payments or pay the total amount financed in full at any point by clicking the ‘Make Payment’ button in your Dashboard. There are no additional fees for early payment.

• Will paying early qualify me for a new offer? 

After you pay the total amount financed, we’ll automatically evaluate you for a new offer. Paying early doesn’t 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 wouldn’t be considered taxable income at the time of receipt, and the amounts withheld to satisfy your obligations aren’t tax deductible.

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

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