PocketSuite Capital

PocketSuite has partnered with Stripe to offer eligible businesses access to fast, flexible financing. Read more about this partnership here: Introducing PocketSuite Capital.

TL;DR — How PocketSuite Capital works: If prequalified, you will receive a business financing offer which you can access by clicking a banner on your home screen. If you apply and are approved, the funds will be paid out to your bank account. Going forward, you will pay down the financing with each payment you process on PocketSuite.

Eligibility

The PocketSuite Capital program is fully managed by Stripe. PocketSuite businesses are automatically reviewed for eligibility, and you will see a banner on your PocketSuite home screen if your business prequalifies for an offer. Eligibility is based on factors like your payment volume and history with PocketSuite. Stripe re-evaluates your eligibility on a rolling basis, so if you’re not eligible today and take steps to move payment volume to PocketSuite payments, you may improve the likelihood of receiving an offer. If you become eligible, you’ll see a banner on your PocketSuite home screen.

Offer Structure

If eligible, you will see a banner on your PocketSuite home screen which takes you to your personalized offers, where 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 financed: The sum of the financing amount and the flat fee.
The payment rate: The percentage of your daily PocketSuite payments that will be withheld to pay the total amount financed.

Here’s an example offer you might receive:

Financing amount: $17,000
Flat fee: $1,700
Total amount financed: $18,700
Payment rate: 12%

If you accepted the example offer above and were approved, you would receive $17,000 in the bank account associated with your PocketSuite account in as soon as 2 business days along with your usual payout. Stripe would then withhold 12% of your daily PocketSuite payments in addition to the usual processing fees until you’ve paid the total amount financed of $18,700 (the $17,000 financed plus the $1,700 flat fee).

Payment

You’ll automatically pay the financing to Stripe over time with a fixed percentage of your PocketSuite payments according to your payment rate. The payment process will begin automatically in as soon as 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 which you can access from Settings > PocketSuite Capital. 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 you will see a banner on your PocketSuite home screen if you prequalify for any additional offers.

To see a daily summary of your payment progress, see the Financing Overview page which you can access from Settings > PocketSuite Capital.

FAQs

How does PocketSuite Capital determine who prequalifies for an offer? Eligibility is determined by Stripe based on factors like your payment volume and history with PocketSuite. Eligible businesses will see a banner on their PocketSuite home screen if they have an offer available.

Do I have to pay interest on PocketSuite 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 score? Applying for financing through Stripe might require a personal credit check, but this credit check doesn’t affect your personal credit score. If a personal credit check is required, you will be notified during the application process. All offers are determined by Stripe based on factors like your payment volume and history with PocketSuite.

Can I request a different offer amount? Under Settings > PocketSuite Capital, where you will be able to review the offer, you 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 with a fixed percentage of your PocketSuite payments until the total amount is paid to Stripe.

How does payment work? Payment is collected automatically by Stripe with a fixed percentage of your PocketSuite payments as they are processed. Each PocketSuite Capital financing offer has a minimum amount due each payment period — if the amount that you pay through PocketSuite payments doesn’t meet the minimum, your bank account will be automatically debited the remaining amount at the end of the period.

Does the payment rate on my financing apply on top of my PocketSuite processing rate? Yes — your standard PocketSuite processing rate still applies to each payment. The financing payment rate is withheld in addition to those processing fees until the total amount financed is paid.

What is a minimum payment? For PocketSuite Capital financing, a minimum payment is the minimum amount that you’re expected to pay 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 on the Financing Overview page found under Settings > PocketSuite Capital or in your Stripe financing agreement.

How do I make my minimum payment if one is required? For PocketSuite Capital financing, if your payments deducted from PocketSuite payments cover the minimum payment requirement for the 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, for 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? If your application is approved, you’ll see the funds in your bank account 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 your Financing Overview page accessed under Settings > PocketSuite Capital.

Can I have my PocketSuite Capital funds paid out to a card? PocketSuite Capital 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. This needs to be done through your Financing Overview page accessed under Settings > PocketSuite Capital.

What happens when my PocketSuite Capital offer expires? Each PocketSuite Capital offer is available for 30 days. After that point, your business will automatically be re-evaluated by Stripe 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 financed in full at any point by clicking the Make Payment button on your Financing Overview page accessed under Settings > PocketSuite Capital. There are no additional fees for early payment.

Will paying early prequalify me for a new offer? Once you pay the total amount financed, you’ll automatically be evaluated for a new offer by Stripe. Paying early does not automatically prequalify you for a new offer.

How should I report these funds on my taxes? We recommend you work with your accountant as every business’ tax situation is unique.

Stripe Capital offers financing types that include loans and merchant cash advances. All financing applications are subject to review prior to approval. In the US, Stripe Capital loans are issued by Celtic Bank, and YouLend provides Stripe Capital merchant cash advances. Stripe Capital loans have a minimum amount due each payment period. If the amount that you pay through sales doesn’t meet the minimum required, your bank account will be automatically debited the remaining amount at the end of the period.

Questions or concerns? Contact PocketSuite Support at support@pocketsuite.io.