Business Financing with Houzz Pro Capital
Financing your business can be a challenge, which is why Houzz Pro partnered with Stripe to give you easy, convenient and safe ways to move your business forward.
There are two different financing options through Houzz Pro Capital:
- Merchant Cash Advances (MCAs) offered through YouLend
- Loans offered through Celtic Bank
You are not able to request a particular financing type. As part of the underwriting process, Stripe will review your information and determine which option works best for your business.
Merchant Cash Advances (MCAs)
A Merchant Cash Advance is not a loan or credit transaction — it is a purchase of your future sales.
With MCAs, your business receivables are purchased by Stripe, and payments are made through withholdings on your sales. Because the payment is a percentage of your payment processing volume, the amount you pay will vary. For example, if your business slows down, your payment amount will reduce as well without penalty. The payment percentage is specified in your financing agreement with YouLend.
Unlike loans, MCAs do not include enforced payment schedules, minimum payments, or a fixed term. There are financing options up to $100,000 based on eligibility.
Loans
Business loans have a maximum term and periodic payments. It allows you to start projects faster and get the funding you need to move your business forward. We offer a wide range of loan options, depending on your business eligibility and needs, including:
- Financing options up to $250,000 based on eligibility.
- Flat fixed fee with no interest.
- No late fees, early repayment fees, or origination fees.
- No credit check needed (it won't impact your personal credit score).
Eligibility
Houzz Pro Capital offers financing for eligible users who currently process payments through Stripe. Both designers and builders who have enabled Houzz Pro online payments are able to receive loans through Houzz Pro Capital.
To qualify for a financing offer through Houzz Pro Capital, your business must:
- Have processed payments on Stripe for 3 months or more.
- Have a processing volume of $5,000 USD minimum per year, with an average processing volume of $1,000 USD for the last 3 months.
- Be in good standing with Houzz Pro Capital. If your business previously applied for a Capital offer and was rejected, you’re not eligible to receive a new offer for 30 days.
- Be based in the US. The Houzz Pro Capital program only supports businesses located or incorporated in the US. Business representatives must also provide a physical US home address.
- Certain geographic limitations may apply. Funding might not be available in certain states due to local rules and regulations.
Meeting these minimum requirements does not guarantee your business qualifies for an offer, or will be approved at application. Houzz Pro Capital also considers business growth, a steady processing record, large customer base, and a low dispute rate. Learn more about business eligibility requirements here.
Your business will be automatically reviewed for financing offer eligibility on a daily basis. If you become eligible, you’ll receive an email with your offer details. If you are not yet eligible for a financing offer, you might see a banner in your Stripe dashboard indicating you are on track for a future offer. This isn’t a guarantee of a future offer or of specific terms and does not reflect a decision or evaluation.
Offer Structure
If eligible, you’ll receive an email from Stripe with your personalized offer. 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 or compounding interest.
- The total amount owed: The sum of the financing amount and the flat fee.
- The payment rate: The percentage of your sales processed through Houzz Pro that will be withheld to pay the total amount owed.
Here’s an example offer you might receive:
- Financing amount: $17,000
- Flat fee: $1,700
- Total amount owed: $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 Houzz Pro account within 1-2 days along with your usual payout. Stripe would then withhold 12% of your daily transaction total in addition to the usual processing fees until you’ve paid the total amount owed of $18,700 (the $17,000 financed plus the $1,700 flat fee).
Payment
You’ll automatically pay the financing over time through a percentage of your transactions according to your payment rate. The payment process will begin automatically 1-2 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 on Stripe. 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 Stripe will send you an email if you qualify for any additional offers.
To see a daily summary of your payment progress, see the Financing Overview page on Stripe.
Frequently Asked Questions
- How do you determine who qualifies for an offer? Eligibility is determined based on a combination of factors, including overall sales volume and history with Houzz Pro. Eligible US businesses will receive an email if they have an offer available.
- Do I have to pay interest? 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 rating? Applying for financing through Houzz Pro Capital might include a personal credit check under some circumstances, 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 a number of factors, including order volume and your history of orders on Stripe through Houzz Pro.
- Can I request a different offer amount? After clicking the link in your offer email, you will be able to review the offer, and 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? The flat fee is included in your payment total, so you’ll automatically pay it through a fixed percentage of your sales until the total amount is paid.
- How does payment work? Payment is collected automatically through a percentage of your sales through Houzz Pro as they are processed. Houzz Pro loans have a minimum amount due each payment period, and if the minimum amount that you pay through sale doesn’t meet the minimum, your account will be automatically debited the remaining amount at the end of the period. If your loan has a fixed payment, Stripe stops withholding from your Stripe sales when you meet the fixed payment amount. The payment terms for your offer will be detailed during the application process.
- What is a minimum payment? For Houzz Pro Capital loans, 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 loan 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 in the Dashboard or in your loan agreement.
- How do I make my minimum payment? For Houzz Pro Capital loans, if your payments deducted from sales cover the minimum payment requirement for 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 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 typically 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 Stripe.
- Can I have my Capital funds paid out to a card? Stripe currently does not support 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 on Stripe.
- What happens when my offer expires? Each offer is available for 30 days. After that point, your business will automatically be re-evaluated to see if you’re eligible for an additional offer.
- Can I pay my financing early? Yes, you can make additional payments or pay the total amount owed in full at any point by clicking the ‘Make Payment’ button in your Dashboard. There are no additional fees for early repayment.
- Will paying early qualify me for a new offer? Once you pay the total amount owed, you’ll automatically be evaluated for a new offer. Paying early does not automatically qualify you for a new offer.
- How should I report these funds on my taxes? Tax reporting is often dependent on your specific situation, so we encourage you to talk with a tax advisor to ensure appropriate accounting. In general, Houzz Pro Capital funds would not be considered taxable income at the time of receipt, and the amounts withheld to satisfy your obligations are not tax deductible.
- Who can I contact to learn more about the Houzz Pro Capital program? If you have additional questions about how our financing program through Houzz Pro Capital works, you can contact our partners at capital+support@stripe.com.
Stripe Capital offers financing types that include loans and merchant cash advances. All financing requests are subject to a final review prior to approval. Stripe Capital loans are issued by Celtic Bank, powered by Stripe. YouLend provides Stripe Capital merchant cash advances.