Summary

A Flex Loan is a type of capital option that allows merchants to receive additional funding which is repaid as a percent of their daily sales rather than a fixed amount each month like a traditional loan. This allows merchants to more easily repay the amount since it’s flexible around their sales volume. The other major benefit is the ease-of-use since merchants are pre-qualified based on their sales history with the point-of-sale (POS) and/or PayFac which means no credit check and no long application process.

The Need

The need for a product like this is huge, 88% of SMBs rely on an owner’s (personal) credit score to obtain financing and >50% of SMBs see obstacles to obtain finance especially with prices, collateral and paperwork.

Availability

Available in the US and Canada
Non-PayFac customers can qualify but it requires the POS to be able to be able to send 18 months of historical data and daily sales data. Most of our cloud software's are already passing this data or are working on it. For on-prem software's, this data is not usually available which means only PayFac customers will be able to qualify for this.
Some features, Flex Loans, are available on the PayFac but may not be available to all Brands. This may be due to additional integration work that might be required and/or other factors such as customer demand, dev priorities, or more. In this case, see the table below for which brands have access to this feature as of this moment.

Brand	Available
Rain Retail (Rain Payments)	✅
CellSmart	✅

<aside> 💡 Note: Flex Loans requires additional development to implement. Please have a supervisor speak with your local Product team if you feel this feature may be of interest to your industry or Brand and we can get it enabled.

</aside>

Processor

Brand	Available
Adyen	✅
Stripe	❌

Qualifying

Merchants are qualified automatically and email offers are sent as soon as they do. They cannot request to be approved since it’s based on their sales history.

Every day anonymized data for Merchants is sent to Parafin, once the merchant qualifies for a flex loan an automated campaign launches to let them know about the additional revenue source that is available to them with the flexible repayment options.

Partner Provider

Parafin is the company we’ve chosen to partner with to offer this to our merchants. They handle all the support and sales interactions so all we need to do is provide the data and extend the offer to the merchants.