Private payment company Stripe Capital Thursday announced that it was taking a step into the lending business.
Stripe said the next step in its growth phase will be providing financing to online businesses.
Stripe said their loan process will be quick and easy, and the funds can be distributed to a user’s account the next business day. Stripe said it will also extend smart finance services to its platform partners.
The loan program seeks to reach the more than 70% of businesses who say they do not have access to adequate financing after banks cut their small business nearly half of loans over the past decade, according to Stripe.
Additionally, Stripe will be looking to dramatically reduce the average 25 hours businesses spend filling out loan paperwork and the weeks they spend waiting for approval.
Stripe’s chief product officer Will Gaybrick said small businesses and startups are essential to a healthy economy.
“It should be trivially quick and easy for them to access the capital they need to smooth their cash flow and invest in their own growth,” Garbrick said.
Stripe’s unique approach to lending is to rely on internal payment data and advanced algorithms to determine creditworthiness, rather than a borrower’s FICO credit rating.
Investors will also be watching for rumors of a possible Stripe IPO after the company’s latest funding round valued it at over $ 22 billion.
This story was originally published on Benzinga.com.