Stripe Capital

Eligibility and financing types

The Stripe Capital program is fully managed by Stripe and it’s lending partners.

HungryHungry businesses are automatically reviewed for eligibility and then Stripe sends eligible providers an email if their business qualifies for an offer. The criteria for eligibility is determined by Stripe and based on a number of factors, including transaction volume and history with HungryHungry payments powered by Stripe. Stripe re-evaluates your eligibility on a rolling basis,
so if you’re not eligible today and take steps to move transaction volume from other
payment sources to Stripe, you may improve the likelihood of receiving an offer.

If you become eligible, you’ll receive a Capital offer email.

Each offer specifies the type of financing being offered, which might be a loan or merchant
cash advance. You can’t request a particular financing type under the Stripe Capital
program.

Offer Structure

If eligible, you’ll receive an email from Stripe with your personalized offers and you can
choose the one that works best for your business.

Each offer will outline:
● The financing amount: The total amount that will be deposited into your bank
account.
● The flat fee: The fee you’ll pay over time in exchange for the financing amount –
there are no other fees and or compounding interest.
● The total amount owed: The sum of the financing amount and the flat fee.
● The payment rate: The percentage of your daily card transactions processed
through HungryHungry that will be withheld to pay the total amount owed.

Payment

• You’ll automatically pay the financing to Stripe Capital over time through a percentage of
  your transactions according to your payment rate. The payment process will begin
  Automatically as soon as 1-2 business days after the funds have been deposited into your account.

• 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 on your Financing Overview page on Stripe. 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 Stripe will send you an email if you qualify for any additional offers.

For Stripe Capital loans, a minimum payment is the minimum amount that you’re expected to pay to Stripe Capital every payment period. That period will be determined during underwriting and based on the total term of your financing offer. If your automatic payments do not meet this minimum, you’ll be debited the remaining balance from your bank account.

To view your minimum payment amount and a daily summary of your payment progress, see the Financing Overview page on Stripe.

FAQs

How does Stripe Capital determine who qualifies for an offer?
Eligibility is determined by Stripe based on a combination of factors, including overall sales
volume and history of Stripe payments from HungryHungry. Eligible businesses will
receive an email from Stripe if they have an offer available.

Do I have to pay interest on Stripe Capital financing?
No, you’ll pay one flat fee that does not change. You won’t pay any interest on top of this
fee.

Will applying for an offer affect my personal credit rating?
In Australia, no personal credit check is required. All offers are determined by Stripe based on a number of factors, including order volume and your history of orders on Stripe through HungryHungry.

Can I request a different offer amount?
After clicking the link in your capital offer email, you will be able to review the offer, and 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 to Stripe Capital?
The flat fee is included in your payment total so you'll automatically pay it through a fixed
percentage of your sales until the total amount is paid to Stripe Capital.

How does payment work?
Payment is collected automatically by Stripe Capital through a percentage of your
HungryHungry sales as they are processed. Stripe Capital loans have a minimum amount
due each payment period, and if the minimum amount that you pay through sales doesn’t
meet the minimum your account will be automatically debited the remaining amount at the
end of the period. If your loan has a fixed payment, Stripe stops withholding from your
Stripe sales when you meet the fixed payment amount. The payment terms for your offer
will be detailed during the application process.

What is a minimum payment?
For Stripe Capital loans, a minimum payment is the minimum amount that you’re expected
to pay to Stripe Capital every payment period. That period will be determined during
underwriting and based on the total term of your financing offer. If your automatic
payments do not 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 Stripe dashboard or
in your Stripe Capital financing agreement.

How do I make my minimum payment if one is required?
For Stripe Capital loans, if your payments deducted from sales cover the minimum
payment requirement for payment period, no action will be taken. If you have not met the
minimum payment amount by the end of the payment period, 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 from Stripe Capital?
If your application is approved, you’ll see the funds from Stripe Capital 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. This
needs to be done through Stripe.

Can I have my Stripe Capital funds paid out to a card?
Stripe currently does not support the 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 on Stripe.

What happens when my Stripe Capital offer expires?
Each Stripe Capital offer is available for 30 days. After that point, your business will
automatically be re-evaluated by Stripe Capital to see if you are eligible for an additional
offer.

Can I pay my financing early?
Yes, you can make additional payments or pay the total amount owed to Stripe Capital in
full at any point by clicking the Make Payment button in your Stripe Capital Dashboard.
There are no additional fees for early payment.

Will paying early qualify me for a new offer from Stripe Capital?
Once you pay the total amount owed, you’ll automatically be evaluated for a new offer by
Stripe Capital. Paying early does not 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 would
not be considered taxable income at the time of receipt, and the amounts withheld to
satisfy your obligations are not tax deductible.

Who can I contact to learn more about the Stripe Capital program?
If you have additional questions about how the financing program through Stripe Capital
works, you can contact our Stripe partners directly at capital-support@stripe.com.