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I really love what Stripe are doing here - whilst yes the the APR can be quite considerably higher. That's fair since Stripe are taking on quite a fair bit of a
by BukhariH 7y ago
I really love what Stripe are doing here - whilst yes the the APR can be quite considerably higher. That's fair since Stripe are taking on quite a fair bit of additional risk.
As the borrower this loan is significantly de-risked since there aren't any dreaded monthly payments you must make.
Here's my attempt at a quick interest calculator for Stripe Capitals loans:
https://docs.google.com/spreadsheets/d/1RH9PpJ9kdB7X4xcZvqb73aQV5aUiMTahwYq2ngPSf70/edit?usp=sharing https://docs.google.com/spreadsheets/d/1RH9PpJ9kdB7X4xcZvqb7...
- hammock 7y agoYou didn't include the fee in the payback, and you are confusing monthly with annual interest rates
- BukhariH 7y agoIs the fee not charged upfront - that's why I excluded it from the payback period. Ahh you caught the mistake with the interest periods! Thanks!
- hammock 7y ago>Is the fee not charged upfront How does that make any sense?
- BukhariH 7y agoIt's pretty common to have a fee for a loan that's paid upfront like an arrangement fee. But you're probably right in this case - Stripe likely include their fee in the monthly payments - updated the sheet. Appreciate the feedback!
- davidpolberger 7y agoI created a version with sliders, making it easier to experiment: https://connect.calcapp.net/?app=atzggn https://connect.calcapp.net/?app=atzggn Also, you don't have to duplicate the spreadsheet to make it editable, you can just use it straight away. (Disclaimer: I created it with Calcapp, which is a SaaS product I built.)
- robocat 7y agoPerhaps add a <noscript> tag to your calculator - otherwise it is just a blank page with JavaScript disabled!
- davidpolberger 7y agoThere is actually a <noscript> element, but it isn't showing because the CSS opacity of the <body> element is set to 0. That's a fairly recent change which inadvertently broke the <noscript> text. We'll need to look into what we can do to fix it.
- BukhariH 7y agoThat’s a super neat app for excel a junky - bookmarked!
- davidpolberger 7y agoGlad you like it. If you or anyone else need a calculator to share on Hacker News, let me know and I'll make sure it can be launched an unlimited number of times for free. (Otherwise, you'll quickly bump into the limits of our free plan.)
- softawre 7y agoCool experiment. I don't agree with how you say that 10% is the Quoted Interest Rate, because Stripe isn't doing that. They are saying they have a fixed fee. "Interest rate" means it compounds.
- davidpolberger 7y agoIf the HN hive mind can agree on better terminology, I'd be happy to update the calculator.
- dbkahn 7y agoI would say something like "Loan fee as a percent of amount lent" or (if you wanted to keep it consistent) "Fixed fee as a percent of Principal"