Lightspeed Launches New Small Business Lending Offering With Payments Giant Stripe

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Lightspeed POS has launched Lightspeed Capital, a new offering that provides flexible loans to help US-based merchants invest in growing their business. The startup has partnered with payment processing software giant Stripe to make the offering available.

Software startup Jobber also offers flexible financing to customers through Stripe.

This is the first time Lightspeed has offered financing to small and medium-sized businesses to help them buy inventory, invest in marketing, or manage cash flow. Lightspeed Capital is available to retailers using Lightspeed Payments in the United States and offers financing of up to US $ 50,000 per point of sale. The loans themselves are funded directly by Stripe Capital.

“Lightspeed retailers have always outperformed the entire industry and this is more evident than ever during COVID-19 as these innovative marketers leveraged omnichannel solutions to meet customer demand,” said Dax Dasilva, Founder and CEO of Lightspeed. “The introduction of Lightspeed Capital is yet another tool to help them digitally transform their business and continue to lead the industry. “

The startup said Lightspeed Capital has a faster approval process than traditional financial institutions, offering loans that keep repayments flexible to meet the borrower’s needs. Companies have the option of reporting refunds directly from Lightspeed software. Eligibility is determined by retailer history with Lightspeed Payments and is based on data from Stripe’s global business network.

Lightspeed isn’t the only Canadian tech startup to partner with Stripe Capital to provide financing to its clients. Home service management software startup Jobber is also now offering flexible financing and instant payments to Jobber customers in North America, in partnership with Stripe.

Like Jobber, Lightspeed is also leveraging Stripe for its payment product, which launched earlier this year. Stripe was not initially involved in the first rollout of this product, but Dasilva told BetaKit in February that once Lightspeed decided to expand the offering, it decided to team up with the payments giant. The new Lightspeed Capital offering is only available to merchants using Lightspeed Payments.

RELATED: Lightspeed Partners with Stripe, Launches Payment Product in North America

Due to the COVID-19 pandemic, the startup is also hosting webinars with the aim of providing SMEs with essential information on financial planning, social media sales integrations and how to maximize retail revenue. . Lightspeed told BetaKit that the startup planned to offer some sort of financial support for SMEs to grow and grow their businesses long before the COVID-19 pandemic.

According to Lightspeed’s most recent financial results, the startup had annual revenue of $ 120.6 million for the fiscal year ended March 31, 2020. Lightspeed initially reported that the pandemic had an impact on the demand for its services, but followed new customer demand in April as well as a 50 percent increase in total volume for retailers from March.

Lightspeed Capital’s launch follows shortly after The Logic resurfaced a $ 30 million lawsuit filed in 2016 against Dasilva for allegedly stealing key technology from Montreal-based Brenrose Solutions and using it to launch. Lightspeed.

The company declined to answer questions related to the lawsuit, citing that it is an ongoing proceeding. But Lightspeed spokesperson Cristina Rotondo told BetaKit she had “made no secret of the existence” of the lawsuit, noting that Lightspeed disclosed the lawsuit in its preliminary IPO prospectus filed in February. 2019. In the prospectus, the startup said it strongly disagrees. with the position of the plaintiffs and intended to “defend vigorously” against the claims made.

Image courtesy of Lightspeed.

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