Many small businesses struggle with access to capital and the relatively high costs that come along with many types of payments. Stripe has announced an expansion deeper into the UK with a new series of offerings as they expand their presence. They are expanding access to faster payments, as well as financing tools for small businesses.
Stripe shared ”Using the UK’s Faster Payments Scheme, Stripe has reduced the time it takes for a business to receive earnings from two days to a couple of hours, helping companies to manage their cash flow more easily.”
Access to capital is a challenge for many small businesses that has only grown more difficult the last few years. “Only 50% of bank loan applications by UK small businesses were successful last year, down from 80% in 2018. Without the funds to invest in new products, or modernize their processes, many small firms are forced to rein in their aspirations.
Stripe Capital is now available to UK businesses that run directly on Stripe. Later this year, UK marketplaces and platforms that use Stripe Connect will also be able to use Stripe Capital to offer financing to their own users.
Platforms are an important part of the UK’s small business economy, with more than half (55%) of online payments to small businesses in the UK today being handled by platforms like Shopify (for retailers) or Treatwell (for salons). Small businesses use these platforms on a daily basis to handle sales, bookings, and other operations. They’ll soon be able to access near-instant financing on the platforms they’re already using, powered by Stripe Connect.”
In addition to financing tools, Stripe is expanding access to faster payouts. With Manual payouts, funds become available in 3 days. They have also introduced Pay by Bank payment method to issue a payment directly from your bank account. These payments are a great way to minimize transaction fee costs for your small business.
