Stripe, the fintech with $1 trillion in total processed payment volume in 2023 and a 65 billion dollar valuation, announced many new features and services at its big developer conference called Sessions yesterday in San Francisco. Among them is an embedded financing service called Stripe Connect that it will offer to clients to allow them to provide business financing to its customers. This strategy is part of a larger movement to embedded financing from fintech and Saas providers to fill the gaps in small business financing across the country and beyond.
Stripe not only fills in the gaps but makes it very easy for business owners to get financing where the model is similar to others such as Paypal and Shopify. Stripe mentions on their site that a client can offer business financing to its customers without any 'financial liability for credit losses as all credit losses are absorbed by Stripe Capital.'
It goes on to say that there is a revenue share for the partner platforms, the loans are issued by a partner bank, and they have an in-house loan servicing team.
For more information visit their site Stripe Capital.
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