Overview
In this article, we'll cover frequently asked questions about Fergus Capital, our financing program powered by Stripe Capital.
Q - What is Fergus Capital?
Fergus has partnered with Stripe to offer eligible businesses access to fast, flexible financing through the Stripe Capital program. Fergus Capital gives you access to business financing to help manage cash flow, buy equipment, invest in growth, and more.
Q - How do you determine who qualifies for an offer?
Eligibility is based on a combination of factors, including your overall sales volume and history with Fergus Payments. You don't need to apply - eligible businesses are reviewed automatically on a daily basis, and you'll receive an email if you have an offer available.
Q- Do I have to pay interest?
No. You'll pay one flat fee that doesn't change. There's no interest, no compounding charges, and no early payment fees.
Q - Will applying for an offer affect my personal credit rating?
No, there is no personal credit check. All offers are based on your history with Fergus Pay.
Q - Can I request a different amount?
Yes. When you log into your Fergus Dashboard, you can use a slider to choose a custom amount up to the maximum offer amount. The financing fee and payment rate adjust based on the amount you choose.
Q - When do I need to pay the flat fee?
You'll automatically pay the flat fee through a percentage of your sales until the total amount owed is paid. The fee isn't charged up-front.
Q - How does payment work?
Payment is collected automatically through a percentage of your Fergus Payments sales as they're processed. This means you pay more when business is busy, and less if things slow down - your payments flex with your sales. As long as you meet your minimum payment requirement, what you pay each day adjusts to your sales.
Q - What's a minimum payment?
A minimum payment is the minimum amount that you're expected to pay every payment period. That period will be determined during underwriting and based on the total term of your loan offer. If your automatic daily payments don't meet this minimum, the remaining amount will be collected by direct debit from your linked bank account at the end of the period. You can view your minimum payment amount in the Dashboard or in your loan agreement.
Q - How do I make my minimum payment?
If your payments deducted from sales cover the minimum payment required for payment period, no action will be taken. If you've not met the minimum payment amount by the end of the payment period, Stripe will automatically debit the remaining balance needed to meet your minimum payment from your bank account. There's no action needed on your part.
Q - After I accept an offer, how quickly will I get my funds?
If your application is approved, you'll typically see the funds in your bank account in as soon as 2 business days. To ensure funds are disbursed successfully, you must have a valid bank account set as your primary payout method.
Q - Can I have my Capital funds paid out to a card?
No. Stripe Capital currently doesn't support disbursing funds to a card. You must have a valid bank account set as your primary payout method.
Q - What happens when my offer expires?
Each offer is available for 30 days. After that, your business will automatically be re-evaluated to see if you're eligible for a new offer.
Q - Can I pay my financing early?
Yes. You can make additional payments or pay the total amount owed in full at any time. There are no additional fees for early payment. To arrange a manual payment, contact our finance partner Fundbox at support@fundbox.com.
⚠️ Please Note: Financing is provided by Fundbox, an external finance provider, with payments facilitated by Stripe. Funding amounts, rates, and terms are based on review and approval of a completed application, and are subject to change. Financing offers might require additional documentation.
Q - Will paying early qualify me for a new offer?
After you pay the total amount owed, you'll automatically be evaluated for a new offer. Paying early doesn't automatically qualify you for one, but accounts are reviewed daily.
Q - Can I have more than one active financing at a time?
No. You can only hold one active financing at a time through Stripe Capital. Once you've paid 50% of your current financing, your business will automatically be re-evaluated for a new offer.
Q - What happens if I want to stop using Fergus?
If you have an active financing and want to stop using Fergus, contact the Stripe Capital team at capital+support@stripe.com. They'll be able to share the next steps for managing your payments and accessing your financing information.
Q - How should I report these funds on my taxes?
Tax reporting depends on your specific situation, so we recommend speaking with a tax advisor.
Q - Who can I contact to learn more about the Stripe Capital program?
If you have questions about your financing, contact our partners at Stripe Capital: capital+support@stripe,com.