Stripe has announced it's getting into small business lending with loans underwritten by payments on Stripe. The company promises lower friction, with no application necessary and automatic loan payback out of future sales.
Today, starting first in the US, it is launching Stripe Capital, a service for advancing cash to customers that in turn gets repaid out of their future sales made through Stripe’s payment platform, with loan amounts and repayments based on the customer’s transaction activity on Stripe itself. The launch of Stripe Capital is coming at a key time for the company: we understand that Stripe is gearing up for a bigger push to diversify into other financial services, specifically with the launch of its first business credit card product (akin to Brex, from what we understand). The company is holding its Sessions user conference in San Francisco next week, which is likely to bring more product news.