Best Merchant Financing Solutions in USA
Non-sponsored, Expert Verified and Transparently Ranked Merchant Financing Solutions in USA
Published: December 29, 2025 | Verified by: Ted Scheiman & Rob Watts
Executive Summary
We analyzed 5 solutions. Top Recommendation: PayPal Credit and Cards by PayPal scored highest due to Ecommerce and service businesses with steady PayPal sales seeking quick funding without a credit check, repaid via a percentage of PayPal receipts to smooth cash flow during growth or seasonality..
Content Verification
Side-by-Side Comparison
| Feature | #1 PayPal Credit and Cards (PayPal) | #2 Banking (Square) | #3 Capital (Stripe) | #4 Shopify Capital (Shopify) | #5 Sell on Amazon (Amazon) |
|---|---|---|---|---|---|
| Best For | Ecommerce and service businesses with steady PayPal sales seeking quick funding without a credit check, repaid via a percentage of PayPal receipts to smooth cash flow during growth or seasonality. | SMBs using Square POS needing fast working capital for inventory, renovations, or marketing, with repayments automatically deducted from daily card sales and predictable fixed-fee pricing. | Online-first businesses and platforms processing with Stripe seeking fast loans or cash advances to fund inventory, marketing, or expansion, with next-day funding and repayment that flexes with daily sales. | Shopify store owners investing in inventory, ads, or operations who want fast, frictionless funding inside Shopify, repaid automatically from daily sales with no credit checks and ability to top up. | Established Amazon sellers scaling inventory, advertising, or product lines who prefer embedded financing in Seller Central, including merchant cash advances with flexible revenue-based repayments and quick decisions from vetted partners. |
| Repayment Flexibility | Repayment options include: Pay in 4, down payment plus 3 automatic biweekly installments; Pay Monthly, fixed 3, 24‑month terms (9.99, 35.99% APR); PayPal Credit, 6‑month special financing on $149+ with minimum monthly payments; Working Capital, automatic repayments as a percentage of sales with 90‑day minimums (5, 10%) and optional extra payments. (paypal.com) | Repayments are automatically taken as a fixed percentage of daily Square sales, more on busy days, less when slow. You can prepay or pay off anytime with no penalty (Dashboard/debit/check). Minimum payment of 1/18 of the initial balance is due every 60 days; full balance due within 18 months. (squareup.com) | Repay automatically via a fixed percentage of daily Stripe sales, pay more when busy, less when slow. A minimum payment is due each period; if not met, Stripe auto-debits the remainder. Manual/early payments allowed anytime with no extra fees. (docs.stripe.com) | Repay automatically as a percentage of daily sales, more when sales are high, less when slow; no payments on zero‑sales days. (apps.shopify.com) Choose Fixed-fee or Monthly-fee structures; max term 18 months with two minimum‑payment checkpoints; manual lump‑sum payments allowed; early renewal/top‑up may be offered before full repayment. (help.shopify.com) | Repayment flexibility varies by product: MCAs (Parafin) use a fixed percentage of future sales, no interest, late fees, or minimum payments; remittances occur only when you have sales. Term loans have fixed equal payments; Uncapped allows penalty‑free early payoff; QuickBooks offers multiple term options with autopay. (businesswire.com) (sell.amazon.com) |
| Approval and Funding Speed | Pay in 4/Pay Monthly: instant checkout decisions. (paypal.com) PayPal Credit (card or digital): decision in seconds; usable immediately if approved. (paypal.com) Cards: temporary limit for immediate PayPal use; physical card in 7, 10 business days. (paypal.com) Working Capital: decision in seconds; funds in minutes if approved. (paypal.com) | Approval: applications typically reviewed in 1, 2 business days. Funding: after approval, deposits arrive next business day or instantly to Square Checking; allow 1, 3 business days to an external linked bank. (squareup.com) | Prequalified offers appear in the Stripe Dashboard; application takes minutes with no personal credit impact. After selection and review, funds are typically deposited the next business day; Stripe docs note disbursement in as few as 1, 2 business days. (stripe.com) | Application review: usually 1, 3 business days. Funding: if approved, funds are deposited to your bank account in as quick as two business days. (help.shopify.com) | Applications take minutes. Financing decisions usually arrive within 1, 3 business days; once approved, funds are typically deposited within two business days (timing may vary by provider/bank). (sell.amazon.com) |
| Integration with Sales Platforms | Integrated via PayPal Checkout on major commerce platforms; enable Pay Later/PayPal Credit buttons and dynamic messaging on platforms like BigCommerce, WooCommerce, and 3DCart, or integrate via the JS SDK. Pay Later is included with PayPal Checkout (no extra cost outside the U.S.) and auto‑displays the best eligible offer. (paypal.com) | Native to Square sales platforms: Square sales deposit instantly to Square Checking; automated Savings can move a chosen percentage of Square card sales; Square Loans repay automatically as a fixed percentage of daily Square card sales; banking setup is integrated with Square Payments/Point of Sale and managed in Dashboard. (squareup.com) | Integrates natively with Stripe Payments; repayments are automatically deducted as a fixed percentage of Stripe‑processed sales. Platforms on Stripe Connect can offer Capital via no‑code, embedded components, or API. Example: WooPayments offers Stripe Capital with repayments taken from WooCommerce sales. (docs.stripe.com) | Native to Shopify: apply/manage in Shopify admin; repayments auto‑deducted as a percentage of daily sales across your Shopify online store, POS, and all connected sales channels/apps (e.g., Marketplace Connect, Collective). Repayments are collected from Shopify Payments payouts (in some cases) or via bank debit; no external platform integration needed. (help.shopify.com) | Supports multichannel via apps: Buy with Prime + Amazon MCF app embeds Prime checkout/fulfillment in Shopify and syncs catalog, orders and returns in Shopify admin. (apps.shopify.com) WooCommerce connects to MCF via Amazon-endorsed plugins. (supplychain.amazon.com) Selling Partner Appstore offers connectors for cross-channel listing, inventory and order sync. (sell.amazon.com) |
PayPalCompany Information
API Resources
Description
PayPal is a financial technology company that enables people to make secure payments online and through mobile devices.
What They Do
PayPal provides a digital wallet and platform for secure payments online and in-store, enabling users to send and receive money, make purchases, and manage finances.
Who They Serve
PayPal serves individuals, small businesses, enterprises, and developers looking for payment solutions.
Key Value Propositions
Case Studies
Small Business Success — Local Bakery
An analytics-driven approach helped this bakery increase online orders by 3X using PayPal.
Read Case Study →What Customers Say
"PayPal has made it easy for us to manage our transactions."
— Jane Smith, Small Business Owner
Customer Reviews
Alice Johnson
Tech Blogger
PayPal has revolutionized my online shopping experience! It is secure, fast, and reliable.
Target Customers
Industries Served
Trusted By
Contact Information
Key Pages
Summary
PayPal Working Capital offers quick funding based on your PayPal sales history, with no credit check. Repay automatically as a percentage of PayPal sales and pay a single fixed fee.
Key Features
- PayPal Credit Card: Promotional financing, use everywhere Mastercard is accepted, pay over time on purchases $149+
- PayPal Cashback Mastercard: 3% cash back on PayPal purchases, 1.5% on other purchases, no annual fee, mobile wallet compatible
- Buy Now, Pay Later: Pay in 4 (split into 4 payments), Pay Monthly (fixed APR, flexible terms)
- PayPal Debit Card: Spend PayPal balance, 5% cash back in chosen category, use anywhere Mastercard is accepted
Key Benefits
- Quick access to credit for unexpected purchases
- Up to 3% cash back on PayPal purchases with the Cashback Mastercard
- No annual fee on the Cashback Mastercard
- No impact to credit score if declined for the Cashback Mastercard
- Buy now, pay later options with no late fees
- Ability to pay over time on purchases of $149 or more with PayPal Credit
- Promotional financing offers (e.g., no interest if paid in full in 6 months on qualifying travel purchases)
- Debit card lets you spend PayPal balance and earn 5% cash back in a monthly category
Who Is It For
- Consumers seeking flexible payment and financing options
- Individuals looking for cashback rewards on purchases
- PayPal users who want to pay over time
- Shoppers who prefer digital wallets and mobile payments
- US residents of legal age (18+)
PayPal credit options
Get a quick credit line for unexpected purchases. Opt for a credit card that gives you up to 3% cash back on your PayPal purchases. Or try a Pay Later plan that meets your needs.
PayPal Credit Card
Use the PayPal Credit Card for No Interest if paid in full in 6 months on qualifying travel purchases posted to your account by September 30, 2026, or with both PayPal Credit Card and the PayPal Credit digital line, pay over time on all purchases of $149 or more when checking out with PayPal.
- Interest will be charged from the purchase date if the balance is not paid in full within 6 months.
- Minimum monthly payments required.
- Subject to credit approval.
- If approved, you'll get a PayPal Credit Card to use everywhere Mastercard is accepted or a PayPal Credit digital line to use when checking out with PayPal.
PayPal Cashback Mastercard®
Earn 3% back on your PayPal purchases. And 1.5% back on everything else. Use it anywhere Mastercard is accepted. There’s no annual fee. And no impact to your credit score if you're declined. Add it to your phone’s wallet, and tap to pay.
Buy Now, Pay Later
Pay over time with no late fees. Choose from smart options like Pay in 4 or Pay Monthly.
PayPal Debit Card
Shop in stores or online wherever Mastercard® is accepted. Plus, get 5% cash back in the monthly category of your choice.
Frequently asked questions
- PayPal offers several products that provide access to credit, including the Cashback Mastercard and PayPal Credit Card/digital line.
- The PayPal Credit Card's travel promotion is for a limited time (through September 30, 2026).
- If approved, you’ll get either a PayPal Credit Card or a PayPal Credit digital line based on your credit history.
Resources
Supporting Resources
Detailed Comparison
Repayment Flexibility
Approval and Funding Speed
Integration with Sales Platforms
SquareCompany Information
Description
Square provides various payment solutions and services for businesses across multiple industries including food & beverage, retail, beauty, and professional services, effectively allowing them to manage their cash flow, take payments, and engage with their customers.
What They Do
Square offers a wide range of payment solutions and business management tools for small and medium-sized businesses.
Who They Serve
Square serves diverse businesses including restaurants, retail shops, beauty salons, and professional services firms.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Summary
Square Loans provides fixed-fee business financing to eligible Square merchants with automated repayments as a percentage of daily sales. Apply in minutes and receive funds as soon as the next business day.
Key Features
- Instant access to sales revenue via Square Checking and Debit Card
- Automated savings for taxes, expenses, and other business needs
- Custom business loans with automated repayment
- Business credit card with 1% back on Square processing fees
- Automated bill pay using sales revenue
- Automatic conversion of up to 50% of daily sales revenue to bitcoin
- No recurring fees for checking or savings accounts
- Integrated with Square Point of Sale and Dashboard
Key Benefits
- Manage all business finances in one place
- Instant access to funds from sales
- Automate savings and bill payments
- Access to custom business loans and credit
- No recurring fees for checking or savings
- Potential to save on banking fees compared to traditional banks
- Integrated with Square’s payment and POS ecosystem
Who Is It For
- Small business owners
- Entrepreneurs
- Retailers
- Food & beverage businesses
- Beauty and wellness businesses
- Service providers
- Any business using Square for payments
Resources
Supporting Resources
Detailed Comparison
Repayment Flexibility
Approval and Funding Speed
Integration with Sales Platforms
StripeCompany Information
API Resources
Description
Join the millions of companies that use Stripe to accept payments online and in person, embed financial services, power custom revenue models, and build a more profitable business.
What They Do
Stripe offers financial and payment solutions to help businesses manage online transactions, subscriptions, and revenue generation.
Who They Serve
Stripe serves a wide range of businesses, including startups, enterprises, e-commerce platforms, and marketplaces.
Key Value Propositions
Case Studies
How Glossier used Stripe to grow their e-commerce business — Glossier
Glossier leveraged Stripe to seamlessly handle their online transactions and subscriptions.
Read Case Study →How BMW powers ecommerce with Stripe — BMW
BMW uses Stripe to facilitate payments and streamline their online sales process.
Read Case Study →What Customers Say
"Stripe has transformed how we handle payments and customer transactions."
— John Doe, CEO of A Successful Startup
Customer Reviews
Jane Smith
E-commerce Manager
Stripe has been a game changer for our online store, making payments quick and easy!
Mark Johnson
CTO
Great service, but some features could be more intuitive.
Target Customers
Industries Served
Trusted By
Contact Information
Key Pages
Navigation Links
Summary
Stripe Capital offers business loans and merchant cash advances for Stripe users with one flat fee and automated repayments that flex with daily sales. Eligibility is based on Stripe processing history and funding often arrives the next business day.
Key Features
- Business loans and merchant cash advances
- Eligibility based on payment volume and history on Stripe
- Flat fee structure
- Automated repayment via fixed percentage of daily sales
- Minimum payment requirement for loans
- No compounding interest
Key Benefits
- Fast and simple application process
- No impact to personal credit score
- Funds typically arrive the next business day
- One flat fee with no compounding interest or late fees
- Automated repayments that adjust to daily sales
- No late fees
Who Is It For
- Small businesses
- Stripe users seeking business financing
- Businesses looking to manage cash flow or invest in growth
Business funding to support your growth
Access fast, flexible financing through Stripe Capital. Manage cash flow, get a business loan or merchant cash advance, and invest in what matters most to your business: growth.
Apply in a few clicks
Get the funding you need without the complexity. Apply for business loans and merchant cash advances in minutes, with no impact to your personal credit score.
Get funds quickly
Funds typically arrive the next business day, directly into your Stripe account.
One flat fee
Pay one flat fee that never changes. There are no compounding interest charges, or late fees.
Pay when you get paid
Payment is fully automated and adjusts to your daily sales. Stripe deducts a fixed percentage of your sales until the total balance is paid.
How it works
Fast funding and flexible payments
- Check your eligibility: Log in to your Dashboard to see if you’re eligible for an offer based on factors that include your payment volume and history on Stripe.
- Select your offer: Choose the funding amount that’s right for your business. The financing fee and payment rate are set based on the funding amount you accept.
- Receive your funds: After our team reviews your selection, the funds will be deposited into your Stripe account, typically the next business day.
- Pay as you earn: You’ll automatically pay for your business loan or merchant cash advance with a fixed percentage of your daily sales until the total amount is paid.
Ready to get started?
Log in to your Dashboard to see your eligibility and view any current offers through Stripe Capital. Eligibility is updated daily, so check back regularly for new business loans or merchant cash advance opportunities.
FAQs
Learn more about Stripe Capital by reading our frequently asked questions.
Capital for platforms
Help your customers access the capital they need to accelerate growth.
Resources
Supporting Resources
Detailed Comparison
Repayment Flexibility
Approval and Funding Speed
Integration with Sales Platforms
ShopifyCompany Information
API Resources
Description
Shopify is an e-commerce platform that allows individuals and businesses to create their own online stores. It provides various tools to set up, manage, and promote their retail business across different channels.
What They Do
Shopify enables users to create and manage e-commerce stores, selling products online and in person.
Who They Serve
Shopify serves everyone from solo entrepreneurs to large enterprises.
Key Value Propositions
Case Studies
Summer Solace Tallow — Megan Bre Camp
Started selling organic candles and skincare online and at local farmers markets.
Read Case Study →What Customers Say
"Shopify Capital has given us the funding we need to stock up on inventory and grow rapidly."
— Jessica Wise, CEO, Hell Babes
Target Customers
Industries Served
Trusted By
Key Pages
Navigation Links
Summary
Shopify Capital gives Shopify merchants access to cash advances and loans from right inside the Shopify admin, with repayment tied to a share of daily sales. Minimal paperwork, no credit checks, and funding in as little as two business days.
Key Features
- Online application with minimal paperwork
- Automated repayments as a fixed percentage of daily sales
- Real-time funding offers based on sales data
- Funding up to $2M (USD or local currency equivalent)
- Early renewal/top-up options
- No guarantors required
- Funds deposited directly into merchant's account
- Hassle-free, online process
Key Benefits
- No credit checks or impact to personal credit score
- Customized funding offers based on business performance
- Repay only on days with sales; pay less when sales are slow
- Receive funds in as quick as two business days, if approved
- Ability to renew funding before current round is fully repaid (if eligible)
- No personal liability and no compounding interest
- Fully integrated with Shopify admin for seamless management
Who Is It For
- Shopify merchants in the United States, Canada, United Kingdom, and Australia
- Businesses that have been selling on Shopify for at least 90 days
- Merchants seeking flexible, fast funding without personal credit checks
Use Cases
- Stocking up on inventory and securing bulk discounts
- Investing in marketing, advertising, and influencer collaborations
- Covering operational costs such as payroll, taxes, and shipping
- Expanding product lines and managing supply chain
Fund your business. Drive growth. Scale faster.
Shopify Capital offers access to funding that lets you repay as you sell, at every growth stage, right from your admin.
- No credit checks, no impact to your personal credit score
- Get offers customized for your business
- Pay only on days you sell and less when sales are slow
- Keep scaling your business with additional cash
How it works
Get cash and repay from sales without leaving your admin.
- Apply online: Minimal paperwork, no credit checks, and no guarantors.
- Get funds in days: Receive funding in as quick as two business days, if approved.
- Repay as you sell: Pay it back with a percentage of your store's daily sales.
- Renew early: Top up before your current round is fully repaid, if eligible.
Seize more opportunities with stronger cash flow
Invest in inventory, marketing, operations, payroll, or whatever keeps your business moving forward.
- Stay competitive year-round: Optimize for SEO, collaborate with influencers, launch referral programs, increase advertising budget.
- Stock up for success: Keep bestsellers in stock, secure bulk discounts, add new products, control your supply chain.
- Cover operational costs: Manage cash flow, keep operations running smoothly, hire staff.
Shopify Capital puts your business first
Comparison of Shopify Capital and traditional loans.
- Funds deposited directly into your account
- Real-time offers based on your sales, funding up to $2M
- No credit checks or impact to your personal credit score
- No personal liability, no compounding interest
- Hassle-free, online application
- Funding in as quick as 2 business days, if approved
- Early renewals with same streamlined application process
- Flexible, automated payments from your store’s sales
- Fully integrated solution, so you can run your business from one place
Frequently asked questions
- Eligibility: Available to select merchants in US, Canada, UK, and Australia. Must have sold on Shopify for at least 90 days and comply with policies.
- Underwriting: Two-stage process—prequalification and application review.
- Application: Requires basic business and personal information; no credit check.
- Multiple rounds: Possible after repaying a certain percentage of current funding.
- Repayment: Fixed percentage of daily sales; only pay on days with sales.
Resources
Supporting Resources
Detailed Comparison
Repayment Flexibility
Approval and Funding Speed
Integration with Sales Platforms
AmazonCompany Information
API Resources
Description
Amazon is a multinational technology company focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is known for its disruptive approach to various sectors, including retail and technology, providing services such as AWS, Kindle, and Echo.
What They Do
Amazon provides a vast range of services including online retail products, cloud computing solutions, digital streaming, and AI technology.
Who They Serve
Amazon serves millions of customers globally, including individuals, businesses, and content creators.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Key Pages
Navigation Links
Summary
Amazon Lending provides financing to eligible Amazon sellers through vetted third-party providers, including merchant cash advances, term loans, and lines of credit. Applications are quick, decisions typically come within days, and funds are disbursed rapidly.
Key Features
- Professional and Individual selling account options.
- Fulfillment by Amazon (FBA) for outsourced logistics.
- Brand Registry for IP protection and brand-building tools.
- Amazon Ads for product and brand promotion.
- Seller Central dashboard and Amazon Seller App for account management.
- Access to Seller University and educational resources.
- Revenue calculator and cost estimation tools.
- Global selling capabilities.
Key Benefits
- Access to Amazon's large customer base and trusted marketplace.
- Programs like Fulfillment by Amazon (FBA) allow outsourcing of order handling, shipping, and customer service.
- Brand protection and growth through Amazon Brand Registry.
- Advertising tools to increase product visibility and sales.
- Potential to grow sales rapidly (e.g., 10x growth in five months, 6x more first-year sales with New Seller Guide).
- Incentives for new sellers, including cash back, shipping discounts, free storage, and ad credits.
Who Is It For
- Entrepreneurs and small businesses looking to sell products online.
- Brands seeking to expand their reach and protect their IP.
- Businesses wanting to sell B2B or globally.
- Individuals with a few items to sell (Individual seller option).
Resources
Supporting Resources
Detailed Comparison
Repayment Flexibility
Approval and Funding Speed
Integration with Sales Platforms
Our Ranking Methodology
How we rank these offerings
We ranked these Merchant Financing Solutions in USA based on three key factors: Repayment Flexibility (40% weight), Integration with Sales Platforms (30% weight), and Approval and Funding Speed (30% weight). PayPal Credit and Cards scored highest due to its strong repayment flexibility options and fast approval process. Its integration with widely-used e-commerce platforms further enhances its appeal. Banking scored well with quick funding times and easy integration but slightly lower flexibility. Capital's integration is seamless with Stripe but slightly lacks flexibility compared to PayPal. Shopify Capital and Sell on Amazon follow due to lower integration capabilities outside their native environments.
Ranking Criteria Weights:
Frequently Asked Questions
- What are the typical costs and pricing models for merchant financing solutions in the USA?
- Merchant financing solutions often employ fixed-fee structures where businesses pay a single upfront cost rather than interest over time. For instance, Square Loans, Shopify Capital, and Stripe Capital all require a predetermined fee for their loans, simplifying the repayment process since there are no ongoing interest charges. The repayment is usually calculated as a percentage of daily sales, which aligns the repayment schedule with the business's cash flow, minimizing financial strain during slower sales periods. This model offers transparency and predictability, making it easier for businesses to manage their finances.
- What key selection criteria should businesses consider when choosing a merchant financing provider?
- When selecting a merchant financing provider, businesses should evaluate the flexibility of repayment terms, the speed of fund disbursement, and eligibility requirements. For example, PayPal Working Capital and Amazon Lending offer flexible repayment options linked to sales, enhancing cash flow management. Additionally, providers like Square Loans and Stripe Capital offer quick funding often available by the next business day, crucial for businesses needing immediate capital. Finally, considering eligibility criteria such as the requirement for a PayPal or Stripe transaction history is essential for ensuring alignment with the company's sales channels.
- What implementation challenges might a business face when using merchant financing solutions, and how can they be addressed?
- Challenges in implementing merchant financing solutions include managing repayment schedules and integrating with existing sales platforms. Solutions like Square Loans and Shopify Capital have streamlined processes with minimal paperwork and automated repayments based on sales, reducing administrative burdens. To address potential integration issues, businesses should leverage platforms that seamlessly connect financing solutions with their sales systems, such as Shopify Capital for Shopify merchants. Properly integrating these systems ensures that businesses can capitalize on funds swiftly and maintain operational efficiency.
- How do merchant financing solutions ensure compliance with industry standards?
- Merchant financing solutions comply with industry standards by adhering to transparent, predefined fee structures and implementing automated repayment mechanisms. Providers like PayPal Working Capital and Stripe Capital design their products to align with fair lending practices by eliminating interest charges and credit checks, reducing consumer risk. Additionally, these services ensure that collection practices are fair and proportional to sales, safeguarding merchant interests while complying with financial regulations.
- What is the potential ROI and value delivery for businesses using merchant financing solutions?
- The ROI and value delivery from merchant financing solutions primarily revolve around the acceleration of business growth through timely access to capital. By enabling quick funding with minimal hurdles, platforms like Square Loans and Amazon Lending help businesses seize growth opportunities, such as expanding inventory or launching marketing campaigns. The alignment of repayment with sales performance reduces financial strain, allowing for strategic reinvestment, which can significantly boost ROI by enhancing revenue-generating activities.
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