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Sounds similar to what Stripe and Square offer: ------ Stripe Capital (https://stripe.com/capital https://stripe.com/capital) "Eligibility is determined base

Sounds similar to what Stripe and Square offer: ------ Stripe Capital (https://stripe.com/capital https://stripe.com/capital) "Eligibility is determined based on a combination of factors, including overall processing volume and history on Stripe. ... Repayment is collected automatically through a percentage of Stripe sales" ------ Square Capital (https://squareup.com/us/en/capital https://squareup.com/us/en/capital) "Get a customized offer based on your card sales through Square... Repay it automatically with a percentage of your daily card sales through Square." (edited formatting, added info)

toomuchtodo 6y ago
Slight differences. Square and Stripe extend the credit themselves, where Pipe is acting as a securitization platform for the committed revenue. It’s all credit card revenue factoring essentially, but the nuance is important depending on if you’re the business, the acquirer, or an investor, what your borrowing cost or yield expectations are, and if this type of financing product (if you’re the business) is a better deal than going to get a loan or diluting your equity.
- nielsbot 6y ago
  Thanks. Re: the last part, sounds like Stripe and Square also don't charge interest or equity. (I don't have any stake in any of these companies, but I do run a small business)
  - toomuchtodo 6y ago
    The one time fee they’re charging could be considered front loaded interest. You have to take fees and interest * duration into account when comparing a loan’s total cost apples to apples. To your point, all of these products preserve your equity arrangement.
  - heliodor 6y ago
    They try very hard to not make you think in terms of APR for the loan they're giving you. There's no competition and the interest rate is plenty high.
    - edoceo 6y ago
      There is plenty of competition.
      - heliodor 6y ago
        Hassle-free quick loan offer based on your Stripe data. Stripe does it. Pipe does it. I might have come across one more lender in the past. Who else is out there?
        edoceo 6y ago
        Square, Paypal (already mentioned) and Lighter from the top of my head. Someone else said SVB. If you have a running business there are loads of folks ready to get you capital to expand. Revenue redemption loans are all over the place.
        driedchicken 6y ago
        Clearbanc. Wayflyer. Capchase. ARRSquared. Payability. Shopify. SaaS Capital. Timia. Captec. The list goes on. And on. And on.
        srezasade 6y ago
        not forget www.bridg.app
tdeck 6y ago
This arrangement is called a merchant cash advance, neither Square nor Stripe invented it: https://en.wikipedia.org/wiki/Merchant_cash_advance https://en.wikipedia.org/wiki/Merchant_cash_advance Source: worked at Square when they first launched this product.
edoceo 6y ago
Paypal too

toomuchtodo 6y ago

Slight differences. Square and Stripe extend the credit themselves, where Pipe is acting as a securitization platform for the committed revenue. It’s all credit card revenue factoring essentially, but the nuance is important depending on if you’re the business, the acquirer, or an investor, what your borrowing cost or yield expectations are, and if this type of financing product (if you’re the business) is a better deal than going to get a loan or diluting your equity.

nielsbot 6y ago
Thanks. Re: the last part, sounds like Stripe and Square also don't charge interest or equity. (I don't have any stake in any of these companies, but I do run a small business)
- toomuchtodo 6y ago
  The one time fee they’re charging could be considered front loaded interest. You have to take fees and interest * duration into account when comparing a loan’s total cost apples to apples. To your point, all of these products preserve your equity arrangement.
- heliodor 6y ago
  They try very hard to not make you think in terms of APR for the loan they're giving you. There's no competition and the interest rate is plenty high.
  - edoceo 6y ago
    There is plenty of competition.
    - heliodor 6y ago
      Hassle-free quick loan offer based on your Stripe data. Stripe does it. Pipe does it. I might have come across one more lender in the past. Who else is out there?
      - edoceo 6y ago
        Square, Paypal (already mentioned) and Lighter from the top of my head. Someone else said SVB. If you have a running business there are loads of folks ready to get you capital to expand. Revenue redemption loans are all over the place.
        driedchicken 6y ago
        Clearbanc. Wayflyer. Capchase. ARRSquared. Payability. Shopify. SaaS Capital. Timia. Captec. The list goes on. And on. And on.
        srezasade 6y ago
        not forget www.bridg.app

tdeck 6y ago

This arrangement is called a merchant cash advance, neither Square nor Stripe invented it: https://en.wikipedia.org/wiki/Merchant_cash_advance https://en.wikipedia.org/wiki/Merchant_cash_advance Source: worked at Square when they first launched this product.

edoceo 6y ago

Paypal too