Stripe plans to launch Stripe Capital in Australia in the coming months, saying this move will give the country’s eligible small and medium-sized businesses (SMBs) access to business financing through the Stripe platform.
The programmable financial services company also announced at the Stripe Tour Sydney that it now supports more than 1 million businesses of all sizes across Australia and New Zealand, and is adding tens of thousands each month, according to a Thursday (Sept. 11) press release.
Stripe Capital uses a company’s payments processing activity with Stripe, as well as other Stripe data, to provide pre-approved offers for financing, according to the release. It then disburses funds into the business’ account, typically in one or two business days, and allows repayments to be made as businesses earn.
In addition, Stripe Capital enables platforms using Stripe to extend financing offers to their customers, per the release.
“SMBs are the backbone of the Australian economy, but around half report difficulty securing funding,” Karl Durrance, managing director, Australia and New Zealand at Stripe, said in the release. “With the cost of business rising sharply in recent years, Stripe Capital can help businesses stay resilient amid economic uncertainty.”
Stripe launched Stripe Capital in September 2019, making it available to internet companies. The company said at the time that online businesses had difficulty getting access to capital and that Stripe users had been asking for a way to make tapping into capital easier.
In December 2020, the company went live with the next phase in its business lending campaign by enabling online platforms to offer financing to their business customers through Stripe Capital.
Stripe reported in December 2021 that businesses that accessed Stripe Capital financing saw revenue growth 114% higher than peer companies that had not done so. It said that more than 50% of the companies that accessed Stripe Capital used the additional financing to fuel their growth by hiring staff, purchasing equipment or inventory and attracting new customers.
The company expanded Stripe Capital to the United Kingdom in May 2024, making it initially available to U.K. businesses that run directly on Stripe and saying that later in the year, it would enable marketplaces and platforms using Stripe Connect to offer financing to their customers.
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