Lightspeed, Stripe To Offer SMB Loans

Lightspeed and Stripe have teamed up to launch Lightspeed Capital, which will, initially offer loans aimed at small and medium-size businesses (SMBs) in the U.S., Lightspeed announced. The program will provide retailers using Lightspeed Payments with “flexible financing” of up to $50,000 per retail location.

“Through financing offers, this new product will help U.S.-based merchants with overall business growth, more specifically to buy inventory, invest in marketing, or manage cash flows,” the company said in a press release.

The approval of loans will be “based on a retailer’s history with Lightspeed Payments, and draws on data from Stripe’s global business network.” The company added that Lightspeed’s software allows retailers to review up-to-date figures on how much of a loan has been paid off.

“The introduction of Lightspeed Capital is one more tool” to help SMBs succeed during the COVID-19 crisis, said Dax Dasilva, founder and CEO of Montreal-based Lightspeed.

“We’re excited to help Lightspeed go the extra mile in building technology to make all aspects of running a modern retailer easier, from payments through to flexible financing,” said Jeanne DeWitt Grosser, head of Americas, revenue and growth at Stripe. “Extra capital can make all the difference for Lightspeed’s growing retailers who want to invest in adaptation as the economy reboots.”

Lightspeed Capital will have a “fast and efficient approval process,” according to the release, which said that, unlike with traditional financial institutions, SMBs will face “no lengthy application or collateral obligations, and approved funds are typically deposited the next day.”

The Lightspeed Capital platform will “offer automated and flexible payments,” the release said. “A percentage of daily sales will automatically be repaid against the borrowed amounts, keeping repayment flexible to suit the needs of the business.”

Lightspeed is known for its global point-of-sale (POS) and eCommerce products. Stripe, a Silicon Valley payments platform, teamed up with Lightspeed earlier this year to facilitate in-store and online payments for retailers and restaurants.

Stripe has worked with QuadPay, which is one of the top 5 on the  PYMNTS Provider Ranking of Alternative Credit Apps.