Stripe launches Stripe Capital; looks to offer data-driven loans

Stripe, the San Francisco-based payments technology provider, is launching a lending service for "internet companies" to get faster access to funds. The lending service will initially be offered to U.S.-based companies and will focus primarily on online businesses such as e-commerce companies and software providers.

According to Stripe, Stripe Capital will determine loan eligibility by leveraging data from its "extensive business network, advanced algorithms analyze hundreds of relevant signals for each business, including payment volume, percentage of repeat customers, payment frequency, and changes in revenue growth."  Loans from Stripe Capital will be repaid with a fixed percentage of daily sales via Stripe's payment platform.

“Stripe Capital makes it easy for internet businesses to get the funds they need, when they need them,” said Will Gaybrick, Stripe’s Chief Product Officer. “It’s important to think about financial inclusion not just in terms of consumers, but also in terms of businesses. Businesses, especially small businesses and startups, are the engines for job creation in our economy. It should be trivially simple and lightning fast for them to access the capital they need to smooth their cash flow and invest in their own growth.”

Stripe's primary product is an API that businesses can integrate into their website to accept online payments. The startup was founded in 2009 by brothers Patrick Collison and John Collison and was most recently valued at $22.5 billion.