Slight differences. Square and Stripe extend the credit themselves, where Pipe is acting as a securitization platform for the committed revenue.

It’s all credit card revenue factoring essentially, but the nuance is important depending on if you’re the business, the acquirer, or an investor, what your borrowing cost or yield expectations are, and if this type of financing product (if you’re the business) is a better deal than going to get a loan or diluting your equity.

Thanks. Re: the last part, sounds like Stripe and Square also don't charge interest or equity. (I don't have any stake in any of these companies, but I do run a small business)

The one time fee they’re charging could be considered front loaded interest. You have to take fees and interest * duration into account when comparing a loan’s total cost apples to apples.

To your point, all of these products preserve your equity arrangement.

They try very hard to not make you think in terms of APR for the loan they're giving you.

There's no competition and the interest rate is plenty high.

There is plenty of competition.

Hassle-free quick loan offer based on your Stripe data. Stripe does it. Pipe does it. I might have come across one more lender in the past. Who else is out there?

Square, Paypal (already mentioned) and Lighter from the top of my head. Someone else said SVB.

If you have a running business there are loads of folks ready to get you capital to expand. Revenue redemption loans are all over the place.

Clearbanc. Wayflyer. Capchase. ARRSquared. Payability. Shopify. SaaS Capital. Timia. Captec. The list goes on. And on. And on.

not forget www.bridg.app

This arrangement is called a merchant cash advance, neither Square nor Stripe invented it:

https://en.wikipedia.org/wiki/Merchant_cash_advance

Source: worked at Square when they first launched this product.

Paypal too