November 8, 2018

Stripe gave us a $20K advance...

We didn't need the money but we took it anyways as I know from past experiences that it's better to take the offer and build a relationship when you don't need it rather than coming with your mouth and hands open and getting denied when your desperate and really need it.

Terms:

  • $20,000 advance

  • 10% fee or $2,000

  • Stripe takes 5% of your daily revenue until the loan is paid back with the fee

Comparable bank loans for a $20K unsecured line would have been anywhere from 7% - %29%. We've been in business for just over 2 years so that had something to do with it I'm sure.


  1. 13

    If you didn’t need the money, you just paid $2000 for no reason!

    1. -1

      This comment has been voted down. Click to show.

      1. 4

        Why lol? I agree.

        1. 1

          is no problem to pay 10% if you make 25% for example. Anything more than 10% is still good ..

  2. 11

    I didn't know they did loans either, really interesting. But I am not sure you are getting that great of a deal. Your reported revenue on IH is showing $51K over the last 30 days (and seems to be trending up). So, 5% of that is $2550. At that pace you will pay off the $22000 in about 8.5 months (or quicker if the trend continues). So your 10% fee is really equivalent to about a 24% APR. (I used a credit card interest calculator to get that figure)

  3. 7

    Very interesting, I had no idea Stripe gave loans.

  4. 4

    Sweet! Not long before Stripe is also our bank account

  5. 4

    Same here for Tettra ($25k, same terms). Seems like a great deal considering there's no application/diligence process.

    1. 3

      Yeah, it was as easy as a push of a button and then a deposit a couple of days later. We took it in part because of no credit pull and normal banking due diligence for sure. let's both put it to go good use! BTW - we're using Tettra for our company wiki!

      1. 2

        Epic! Thanks for being a user. :)

  6. 2

    How much is your daily revenues and when do you plan to return it?

  7. 2

    Agreed with "it's better to take the offer and build a relationship". Cash flow is one of the undervalued things.

    But also if you have extra 20k, make sure to put them to work. Make the 20k worth the interest plus the 5% of your top line.

    1. 1

      That's the plan! And yep, much easier for Stripe to give it again if we really, really need it

  8. 2

    Square has been doing something like this for quite some time now for business that use square register product.

  9. 2

    Now Stripe is the bank. Do you have plans for how you're going to put the money to work?

    1. 2

      We have built a remote dev team that's spread out over India, Ukraine, and the Philippines and Indonesia so this will help us as were in the middle of rebuilding our front end with React/Redux

  10. 1

    These loans are really interesting because they're semi-secured. Essentially Stripe is banking on knowing your past history here.

    They know you have steady cash flow.

    1. 1

      Yeah it's a no brainer and they are so heavily funded that they can take lots of risk. I'm surte 2 years of solid MRR helped us get chosen. I just couldn't believe how easy it was to get the money. Just a couple of clicks a 2 days to get the transfer in our bank account

  11. 1

    Congrats Travis. I like what Stripe is doing those loans can be very helpful. I took advantage of similar offers from American Express. We process with Braintree instead of stripe and AMEX knew what our revenue was so they offered us 6% finance fee loans payable over a year also deducted from our deposits.

    1. 1

      Nice, glad that worked out then for you guys. Hopefully you put it to good use! :-)

  12. 1

    Very interesting! Did they get in contact with you about this?

    1. 2

      It was literally just a little pop up from the left side menu that said we qualified for a beta loan of $20K with no approval process

  13. 1

    Where are you based and where is your company incorporated?

    1. 1
      1. 1

        Is it available to the non-US Stripe Atlas clients?

        1. 1

          Have no idea but its based off of revenue for sure and length of account, but maybe @csallen can find out?