Squarespace Capital Guide for Quick Business Funding
TL;DR:
- Eligibility based on your sales volume and Squarespace Payments history
- No personal credit check required – they assess your Squarespace account instead
- One-time flat fee instead of ongoing interest charges
- Flexible repayment tied to your actual sales performance
- Funds typically arrive in 3-4 business days after approval
Understanding Squarespace Capital Eligibility
Squarespace Capital looks at your sales history rather than your personal credit score. They want to see consistent sales and a solid track record with Squarespace Payments before making an offer.
If you're eligible (US businesses only), you'll get an email notification about available offers. The amount they offer depends on your sales volume and transaction history with their platform.
How Offers and Funding Work
Once you're eligible, you can customise your loan amount through the Finance Dashboard. There's a slider that lets you choose different amounts up to your maximum approved limit.
Key funding details:
- Fees: You pay a single flat fee upfront – no ongoing interest charges
- Receiving funds: Money goes directly to your bank account (not to cards) within 3-4 business days
- Tax implications: Generally not considered taxable income when received, but check with a tax professional
Repayment Made Simple
The repayment system automatically adjusts based on your sales performance. This means you pay more when business is good and less when it's quiet.
How it works:
- There's a minimum payment amount each period (visible in your Dashboard)
- If your sales cover the minimum, the payment comes from your sales revenue
- If sales fall short, Stripe automatically debits the difference from your connected bank account
This flexibility helps match your repayments to your business's natural ups and downs.
Early Repayment Options
You can pay off the entire amount early through your Dashboard without any penalties or extra fees. This is handy if you have a good sales period and want to clear the debt quickly.
Paying early also puts you in line for evaluation for future offers, though it doesn't guarantee you'll get another one.
FAQs
Who can get a Squarespace Capital offer?
You need consistent sales volume and a positive transaction history with Squarespace Payments. Only US businesses are currently eligible.
Can I pay off my loan early?
Yes, you can settle the full amount anytime through your Dashboard with no additional fees.
How fast do I get the money once approved?
Funds typically hit your bank account within 3-4 business days after approval.
Does applying affect my personal credit score?
No, Squarespace Capital doesn't run personal credit checks. They base decisions on your Squarespace sales data.
Jargon Buster
Flat Fee: A fixed amount you pay instead of interest. It stays the same regardless of how long you take to repay.
Underwriting: The process where they evaluate your business risk and decide on loan terms.
Disbursal: The actual transfer of loan money to your bank account.
Sales-based repayment: Your payment amount fluctuates based on how much you're selling each period.
Wrap-up
Squarespace Capital offers a different approach to business funding by tying everything to your actual sales performance rather than personal credit. The flexible repayment structure can work well for businesses with seasonal variations or unpredictable sales cycles.
Make sure your bank details are current in your account settings and consider speaking with a tax advisor about how the funding might affect your business finances.
Ready to grow your Squarespace skills? Join Pixelhaze Academy for expert training and support.