Quilt Capital is a loan program for small businesses. Merchants qualify based on 3-6 months of sales volume using our point-of-sale or ecommerce software solutions. Integrated payments is not required meaning as long as they’re an active customer with historical volume through the software, they may be able to qualify. Merchants are qualified automatically and email offers are sent as soon as they do.
<aside> 💡 Note: This offering is only available to a limited number of Rain Retail merchants as of now. It will expand to other Brands later in 2024.
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Small businesses struggle getting access to the capital they need to grow their business. This may mean they’re not able to purchase new inventory, put the down payment on a new location, or hire additional staff. Not having immediate access to quick cash can hamper growth in many ways and the methods that do exist often take advantage of this need by charging excessive fees.
There are three primary loan options for for a business in need of immediate access to cash. Flex loans offer the most flexibility and the best benefits. Generally though these types of loans are only available through processors since it requires pre-qualification through historic sales data which most lenders won’t have access to.
Flex Loan
❌ Merchant Cash Advance
❌ Traditional Loan
We decided to partner with Parafin to offer our own white-labeled Flex Loan product. Parafin is an industry leading provider that offers flex loan products for businesses of any size. In fact, some of the largest platforms in the US offer flex loans to their users through Parafin:
Every day anonymized sales data is sent to Parafin using a unique merchant ID. Parafin uses the latest technology to pre-qualify merchants based on a variety of factors such as sales volume, refund rates, chargeback frequency, and more.
Once a merchant qualifies we start an automated campaign to send out a series of branded emails introducing the capital product and sending the merchant to a co-hosted landing page to sign up. Once interested, they’ll fill out a short form to indicate how much they need and which repayment length they want.
From there, the merchant should receive funds within 1-2 business days. Repayment happens automatically based on a set percentage of their daily sales. This percentage depends on the loan amount and repayment terms.
Each Brand’s flex loan program will be called [Brand] Capital (ex. Rain Capital). If the merchant has any questions or concerns, the Parafin team handles all of it- from the sales and onboarding to support and retention. Also, to create a consistent brand experience, their team will introduce themselves as the flex loan branch of the [Brand].