Cin7 Capital powered by Stripe (Stripe Capital)
Overview
Cin7 Capital powered by Stripe (Stripe Capital) provides working capital like cash advances, term loans, and flex loans from inside Cin7 Pay. Eligibility is based on your payment processing history, with financing payments automatically deducted from Cin7 Pay payouts.
Eligibility and prequalification
Stripe assesses eligibility for prequalification based on a combination of factors, including overall sales volume and history with Cin7 Pay. You can’t apply directly.
When you’re prequalified, you’ll receive an email with the details of your financing offer and a link to review the offer details within Omni. Offers expire after 30 days and new offers are sent when you prequalify.
Your business must be based in the US, UK, or Australia.
Financing types
The financing type you’re offered depends on your region and eligibility:
Merchant cash advance (MCA)—Receive a lump sum and repay through a fixed percentage of daily sales (US and UK)
Loan advance—Similar to an MCA with different terms (UK)
Flex loan—Flexible repayment terms based on sales volume (US and Australia)
Fixed-term loan—Standard financing with a fixed repayment schedule (US)
Accept an offer
Stripe contacts you by email when you prequalify for financing.
Click the link in the email or go to Money > Cin7 Pay > Cin7 Capital.
Review the financing terms, including the amount, fee, and payment rate. Adjust the offer as required.
Follow the onscreen instructions to complete your application and apply for financing. If a personal credit check is required, it won’t affect your credit score.
While waiting for approval, choose accounts for financing fees and liabilities:
From the Accounting menu in the navigation, open your Xero or QuickBooks Online dashboard.
Open Settings.
Open the Settings tab.
-
Choose accounts under Accounts > Payments and Payouts Accounts:
Financing liability: Liability
Financing fee: Expense or current asset
Save settings.
Disbursements and cost
Stripe typically disburses funds within 2 business days of approval. Funds are deposited into your business bank account. Stripe does not disburse funds to cards.
The financing payment rate is fixed when you accept the offer. The cost is a flat fee (no interest), and minimum payments are required.
Payments, current balance, and timeline
Stripe automatically deducts financing payments from your Cin7 Pay payouts as a percentage of your daily Cin7 Pay payments volume. If a payout doesn’t cover the minimum, the remaining amount is deducted from your business bank account.
To review your payments history, current balance, and estimated payoff timeline, and make additional payments, go to Money > Cin7 Pay > Cin7 Capital to manage your financing.
Reconciliation
Cin7 Omni automatically creates accounting entries for disbursements, financing fees, and financing payments for you to sync to Xero or sync to QuickBooks Online as journal entries.
Disbursements
Debit |
Credit |
|---|---|
Bank clearing (funds) |
Financing liability (funds) |
Financing fee (fee) |
Financing liability (fee) |
This records the receipt of funds in the Bank clearing account, establishes the full financing liability, and recognizes the financing fee at the time of disbursement.
Financing fees can be posted to either an expense account or a current Asset account, depending on your accounting setup.
If an expense account is used, the fee is immediately recognized as an expense at disbursement.
If a current asset account (eg, prepaid expense) is used, the fee is recorded as a prepaid asset at disbursement and must be manually amortized each month as payments are made against the loan.
Financing payments
Debit |
Credit |
|---|---|
Financing liability account (repayment amount) |
Payments (repayment amount) |
This reduces the outstanding financing liability and offsets the repayment against the Payments account used for payout processing.
Disclosure and support
Stripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the US, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances. See your Dashboard for the terms of your offer.
All financing applications are subject to review prior to approval. In the UK, Stripe Capital loans and merchant cash advances are provided by YouLend.
In Australia, financing is provided by Fundbox, an external finance provider, with payments facilitated by Stripe. Funding amounts, rates, and terms are based on review and approval of a completed application, and are subject to change. Financing offers might require additional documentation.
For questions about Stripe Capital financing, contact capital+support@stripe.com.