Fintech firms are now competing on capital as a service. Innovators such as Kabbage, Clearbanc, Square Capital, and others are stepping in to provide capital in a more flexible manner to an increasing level of emerging small businesses. Stripe just improved its capital as service business by simplifying the process.
The company announced on September 5th, 2019:
- “Stripe Capital’s full integration with Stripe means there’s no lengthy application, eligibility is determined quickly, funds hit a user’s Stripe account the next business day, and businesses can repay as they earn.
- In addition to serving Stripe users directly, Stripe will also extend Stripe Capital to its platform partners (such as online store builders and B2B SaaS companies), enabling them to offer their own business users access to smart financing.“
Stripe is a finance and technology company that resides in San Francisco, California. The fintech firm started out by making life easier for people and businesses to send and capture payments over the Internet. It was founded in 2009 and is still a private company. The company provides a full service package that includes the technical infrastructure, and an overall processing infrastructure for banking.
The company has a significant ambition of becoming the foundation for the growing number of e-commerce and internet related businesses across the globe. A crucial component of being a key facilitator in this new world of e-commerce and internet based commerce.
One key issue that Stripe aims to resolve is that of access to capital. Lending requirements by traditional banks are more stringent for emerging businesses and more than 50% of growing businesses lack the funds that they need to become a more impact oriented entity. Additionally, companies don’t want to continue to spend a large portion of their time on traditional processes such as filling out paperwork, hoping for a potential capital opportunity.
Stripe streamlines the capital process by making it simple, convenient, data-driven and tied to the success of the business. Finally, business to business platforms that are Stripe focused will also be powered by Stripe Capital via Stripe Connect, allowing them to deploy capital to entities on their platform.
The fintech firm is certainly taking the right steps to be a foundational player in the growing e-commerce sector.
The initiative will be US based for now.
Innovations in DeFi for Capital
On demand capital in DeFi is based through collateral, namely DAI, place 150% of ETH collateral into a smart contract via argent, Wallet connect, or some other platform and receive a DAI loan to meet your financing needs. Of course, the problem with DAI is the exorbitant lending rates a borrow incurs when conducting the transaction. The second issue might be that of the collateral itself, how many growing businesses (in this context) would want to purchase volatile assets and pledge that as collateral for a loan to run and improve their business?
It seems to me that capital as a service would be a fantastic problem for DeFi to solve.
– This article was originally posted at CryptoTraderNews
About CryptoCurrencyWire (“CCW”)
CryptoCurrencyWire (CCW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with CCW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness.
To receive instant SMS alerts, text CRYPTO to 77948 (U.S. Mobile Phones Only)
CryptoCurrencyNewsWire is where News, content and information converge via Crypto.
For more information, please visit https://www.CryptoCurrencyWire.com
This article contains Third-Party Content submitted by third parties, including articles submitted through the CCW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CCW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CCW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CCW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CCW site, CCW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CCW expressly disclaims liability relating to such third-party content. CCW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CCW reserves the right to remove third-party content at any time in its sole discretion.