Your guide to
Lightspeed Capital

Lightspeed Capital is a service in which eligible Lightspeed merchants can request cash advances. The service, provided by Lightspeed and its affiliates, offers capital upfront (purchase price) in exchange for a portion of the merchant’s future credit card sales revenue (purchase amount). Lightspeed Capital is a flexible funding solution—the cash advance can be put toward any business purpose.

Merchants are not subject to fixed monthly payments, but instead enjoy a simple, seamless process, with a set percentage of the proceeds from their daily credit card sales applied to the balance until the purchase amount has been remitted. This service helps small business owners overcome one of the largest challenges that stands in their way of growth—lack of easy access to capital.

Lightspeed Capital eliminates the need to go to a third party for business funding. Merchants can get funding from a company they already know and trust. Our merchant cash advances don’t require a standard credit check to obtain, which eliminates a top concern for some business owners on their search for funds. And there are no hidden fees or interest rates—just one associated flat fee.

Plus, you have the ability to tailor your offer to the needs of your business—you don’t have to accept the full amount offered, and can instead opt for a smaller sum.

No. Lightspeed Capital provides a merchant cash advance in the amount of the purchase price, which is not a loan. A merchant cash advance is a purchase of future receivables, which is remitted as a percentage of income on each future sale until the purchase amount is remitted in full.

A loan, by contrast, is borrowed money that is paid back according to a set schedule, by a certain deadline, with a specified interest rate. Traditional financial institutions can require collateral (such as accounts receivable or a physical asset) to reduce the risk they take on when offering business loans, but merchant cash advances do not carry this stipulation.

There is no set payment schedule or deadline because this is a merchant cash advance, not a loan. The cash advance is designed to suit the needs of your business: When sales are steady and high, the advance gets remitted faster. In a slow sales period, you pay less. This means that you can remit the advance at any time without penalty, unlike a loan.

As this isn’t a loan, there is no interest rate. Instead, Lightspeed Capital uses flat-fee pricing. The flat fee is a percentage of your cash advance balance that’s added on to the total amount to be remitted.

Based on the amount of funds requested, there is an associated flat fee. The flat fee differs from the payment rate, which is the percentage of your daily credit card sales used to remit the cash advance.

For example, you may receive an offer that looks something like this:

Financing amount: $20,000
Flat fee: $3400
Total amount owed: $23,400
Payment rate: 11%

This fee isn't due as a cash payment upfront. Rather, the fee is paid as part of the daily withdrawals described below.

After you obtain funds via Lightspeed Capital, 11% of your daily credit card sales are taken directly from your business bank account, by a Lightspeed entity via ACH. It's important you make sure that you have enough funds in your account to cover the ACH transfer.

You won't pay anything unless you make sales.

Lightspeed Payments subscribers are automatically reviewed for eligibility on a monthly basis, and you may be contacted via email if your business qualifies for an offer.

If eligible, you will receive an email or intercom notification. Then, when you send in your application (the process takes just a few minutes!), the Lightspeed Capital team assesses your application to confirm you are eligible for the requested cash advance.

The criteria for eligibility is based on a number of factors, including overall business performance, transaction volume and your history with Lightspeed Payments.

Offers will remain available for up to 30 days, after which the offer will expire and you will be reevaluated for eligibility.

You must use the cash advance in a way that helps your business. You have flexibility to use the funds in a variety of ways to help your business, including replenishing inventory, upgrading equipment, running promotions, developing your website, or simply to have extra cash flow on hand.

The advance cannot be used to pay off personal debt or any personal expenses.

After you apply, our underwriting team takes one to three business days to confirm your eligibility for the amount of funds requested. From there, you will receive the cash advance in as soon as two business days.

Lightspeed Capital is a merchant cash advance service provided by Lightspeed and its affiliates. Eligibility criteria, terms and fees apply.