Squarespace Capital is a financing option for eCommerce businesses using Squarespace. Here's how it works and why it might be a fit for your business:
- What It Is: A funding program integrated into Squarespace, offering quick and flexible financing based on your store’s sales performance.
- Key Benefits:
- Fast Access: Funds are typically available within a week.
- Flexible Repayments: Payments are tied to your daily sales - higher during busy periods, lower during slow times.
- No Restrictions: Use the funds as you see fit - inventory, marketing, hiring, or expansion.
- Eligibility: Available to U.S. and U.K. businesses using Squarespace Payments with consistent sales history.
- Application: Automated through the Squarespace dashboard, with approvals based on your sales data.
Repayment Details:
A fixed percentage of daily sales is deducted, with a flat fee (not interest) added to the total repayment amount. Early repayment has no penalties.
Squarespace Capital is a straightforward way for small businesses to secure funding without the complexities of traditional loans.
Squarespace Capital Eligibility Requirements
Basic Requirements
To qualify for Squarespace Capital, your business must meet specific criteria related to location, payment processing, and sales performance. At the moment, this program is open exclusively to businesses operating in the United States or the United Kingdom.
A key requirement is using Squarespace Payments as your primary payment processor. This connection allows Squarespace to directly analyze your store's transaction data and sales performance metrics.
Your business also needs to demonstrate consistent sales activity. While Squarespace doesn’t disclose exact minimums, your revenue must show that it can handle the repayment structure.
Additionally, your history with Squarespace plays a role. Businesses with a longer track record of steady operations are more likely to be approved.
For businesses in the UK, the application process involves a soft credit check initially, which won’t affect your credit score. However, if you accept financing, a hard credit inquiry will be recorded, which may impact your credit rating.
Once these factors are reviewed, Squarespace determines your eligibility for financing automatically.
How Eligibility Gets Reviewed
Squarespace evaluates your account daily, using an automated system that monitors your sales performance and account activity.
This system considers multiple factors, such as your sales history and overall business performance, to assess your financial health. As Squarespace explains:
"Eligibility is determined on sales history and store performance. We'll let you know if you're eligible for financing."
If your business qualifies, you’ll receive an email notification with an offer to apply for financing. You can also check your eligibility anytime by visiting the Finance dashboard in your Squarespace account.
This approach simplifies the financing process by focusing on your business’s sales trends and performance instead of relying on personal credit scores or requiring collateral. It’s designed to make funding more accessible for businesses that are actively growing.
Squarespace Capital Application Process
Application Steps
Once you meet the eligibility requirements, applying for Squarespace Capital is simple and can be done right from your Squarespace account.
Head over to the Finance dashboard, where pre-qualified users will find personalized financing offers. These offers clearly outline the available funding amounts, along with the terms and repayment details.
To complete your application, you'll need to provide some basic information, including your EIN (if applicable), SSN/ITIN, date of birth, and full name. If your business is an LLC, S Corp, C Corp, Partnership, or Cooperative, you’ll also need to include ownership details for anyone holding 25% or more of the company.
The underwriting process is automated through Squarespace Payments, making it quick and seamless.
Approval Timeline
The application itself only takes a few minutes to complete. Once submitted, approvals usually come through within a few business days, and funds are deposited into your account in 3 to 4 business days. This means you can access the capital you need in under a week, helping you take the next steps to grow your business.
Repayment and Fees
How Repayment Works
Squarespace Capital offers a repayment model that adjusts to your daily sales. A fixed percentage of your sales is deducted each day - higher during busy periods and lower during slower times - while the percentage rate itself remains unchanged.
Repayments begin 1–2 business days after the funds are deposited into your account. To ensure steady progress toward paying off your advance, a minimum payment is required for each repayment period. If your daily deductions don't meet that minimum, Stripe will debit your bank account for the remaining amount.
You can also pay off your advance early without worrying about extra fees or penalties. Knowing how the repayment process works can help you better understand how fees are applied.
Fee Structure
Squarespace Capital uses a flat-fee system, making costs clear from the start. Instead of interest-based charges, you’ll see an upfront fee added to your advance. When you receive a financing offer, the total repayment amount - including both the advance and the flat fee - is displayed clearly.
For instance, if you’re offered a $17,000 advance with a flat fee of $1,700, your total repayment amount would be $18,700. If the daily sales deduction rate is 12%, that percentage will be taken from your daily transactions (along with standard processing fees) until the full amount is repaid.
The repayment rate and flat fee are tied to the funding amount you choose. Larger advances often come with different rates and fees, all of which are detailed in your personalized offer within the Finance dashboard.
Be sure to review the minimum payment requirements, especially during periods of lower card sales. If you think you might have trouble meeting a payment, reach out to Squarespace at least five business days before your due date to explore alternative solutions.
Common Uses for Squarespace Capital
What Businesses Use Funding For
Squarespace Capital provides businesses with the resources they need to grow and thrive. Companies often use this funding to tackle areas that directly influence their expansion and revenue.
One popular use is for inventory and product expansion. For eCommerce sellers, this means buying more inventory to keep up with growing customer demand or introducing new product lines. It’s a way to capture opportunities in the market without delays.
Another common application is team expansion and staffing. Service-based businesses like personal trainers or photographers often use the funds to hire extra staff or bring in specialized talent. This helps them manage higher workloads or offer more services. For instance, a personal trainer might use the funding to open a larger gym or a photographer might invest in additional studio space.
Some businesses focus on equipment and infrastructure upgrades. Take a food truck business, for example - they might use the funds to buy an additional truck, fully equip it, and hire staff to cover more locations or events.
Marketing and customer acquisition are also key areas where funds are allocated. With most consumers starting their shopping journey online, businesses often invest in digital marketing efforts, such as SEO and paid advertising, to increase website traffic and drive sales.
These targeted investments not only address immediate business needs but also lay the groundwork for long-term growth.
Growing Your Business
Squarespace Capital gives businesses the ability to scale by tying funding costs to actual sales, making it easier to reinvest during busy seasons or navigate slower periods.
With quick access to funds, companies can act decisively on growth opportunities. Whether it’s launching a new product, entering a different market, or upgrading technology, this funding eliminates many of the financial hurdles that often stand in the way of progress.
This flexibility makes Squarespace Capital a valuable tool for businesses looking to expand their reach and unlock new possibilities.
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Squarespace Capital vs Other Financing Options
Squarespace Capital vs Onramp Funds
Here’s how Squarespace Capital stacks up against Onramp Funds as financing options for eCommerce businesses.
Platform Integration and Accessibility
Squarespace Capital is tailored specifically for businesses using Squarespace. Your eligibility depends on your sales history and overall performance within the platform’s ecosystem. On the other hand, Onramp Funds supports a wide range of platforms, including Amazon, Shopify, BigCommerce, WooCommerce, Walmart Marketplace, TikTok Shop, and Squarespace. This makes it a better fit for sellers operating across multiple sales channels.
Eligibility Requirements
Squarespace Capital evaluates eligibility based on your sales performance within Squarespace. In contrast, Onramp Funds requires a minimum average of $3,000 in monthly sales but doesn’t rely on personal credit scores for approval. As Eric Youngstrom, CEO and Founder of Onramp, puts it:
"Most lending services in the market are built for traditional retail and don't really reflect the unique needs of eCommerce. We've built a solution that is uniquely tailored to the eCommerce industry."
Funding Speed and Application Process
Both services are designed for quick funding, but their timelines differ. Squarespace Capital typically disburses funds within a few business days after approval, with applications handled directly through the Squarespace dashboard. Onramp Funds, however, offers a faster process, providing funding in as little as 24 hours and even offering cash offers within 2 hours in some cases.
Here’s a quick comparison of the two:
| Feature | Squarespace Capital | Onramp Funds |
|---|---|---|
| Platform Support | Only Squarespace | Amazon, Shopify, BigCommerce, WooCommerce, Walmart, TikTok Shop |
| Funding Speed | A few business days | As little as 24 hours |
| Monthly Minimum Sales | Based on Squarespace performance | $3,000/month |
| Credit Check | May involve credit approval | No personal credit check |
| Repayment | Fixed percentage with a minimum amount | Flexible repayment based on sales |
| Maximum Funding | Not specified | Up to $2 million |
Repayment Structure
Repayment terms are another key difference. Squarespace Capital automatically deducts a fixed percentage of your sales, with a minimum amount due each period. If your sales fall short of this minimum, your account is debited to cover the difference. Onramp Funds, in contrast, offers more flexibility, with repayment tied to your monthly sales and a flat 1% fee.
Loan Structure and Oversight
Squarespace Capital integrates seamlessly with your Squarespace account, making it a convenient option for platform users. However, this exclusivity may limit its appeal for businesses operating on multiple platforms. Onramp Funds, by comparison, offers smaller loans with faster repayment timelines, making it ideal for short-term funding needs. Its structure is designed for simplicity and quick oversight.
Self Made: How To Fund Your Business With Confidence
Summary
Squarespace Capital provides a straightforward and efficient funding solution tailored specifically for eCommerce sellers using Squarespace. Unlike traditional loans that involve lengthy paperwork and rigid terms, this program offers a more accessible and flexible way to secure business financing.
The application process is designed to be quick and hassle-free. You can complete it in just a few minutes directly through your Squarespace dashboard. Once approved, most businesses receive their funds within 3–4 business days.
A key feature of Squarespace Capital is its repayment structure. Squarespace reviews sales daily, and repayments adjust based on your sales performance. Plus, there are no penalties for paying off the loan early.
"That was the motivation behind creating Squarespace Capital - a way to finance your business' growth, designed with the realities of a small business in mind".
This program is built to address both immediate financial needs and support long-term growth. For Squarespace sellers, it’s a practical option to expand operations, stock up on inventory, or invest in growth opportunities - without the complications of traditional bank loans. Offers remain valid for 30 days. Whether you’re planning to hire more staff, upgrade equipment, or launch new products, Squarespace Capital provides a funding structure that evolves with your business.
FAQs
How does Squarespace Capital's repayment plan support cash flow during varying sales periods?
Squarespace Capital offers a repayment plan that aligns with your business's daily sales. Instead of sticking to fixed monthly payments, repayments are calculated as a percentage of your daily revenue. This means when sales are slower, your payments shrink, giving you some breathing room. On the flip side, when sales pick up, you can pay off your balance faster.
This setup helps your business maintain a consistent cash flow, making it easier to handle seasonal ups and downs or any unexpected shifts in sales.
What should I do if my business is experiencing low sales and I’m worried about meeting payment requirements?
If your business is facing a slow sales period and you're worried about meeting payment deadlines, the first step is to contact your financing provider - like Onramp Funds - to explore flexible repayment options. Many providers are willing to work with you by offering temporary solutions, such as reduced payments or extended due dates, to help ease the pressure.
You can also take steps to improve your cash flow. Consider offering discounts or incentives for early payments from customers, or expand your accepted payment methods to encourage more sales. Staying in close communication with your financing provider can help you find a customized solution to navigate these challenges while keeping your financial obligations in check.
How does Squarespace decide how much funding my business qualifies for, and can I increase my eligibility?
Squarespace evaluates your funding eligibility by looking at several key factors: your use of Squarespace Payments, whether your business operates in the U.S. or U.K., your transaction volume, and your payment processing history. These criteria provide insight into your business's financial health and performance.
To improve your chances of qualifying for funding, focus on increasing your sales and transaction volume while maintaining a solid payment processing track record. Steady growth and strong business metrics can play a big role in determining the amount of funding you may qualify for.
