If you're running an online store, you know marketing can be expensive - and waiting for a bank loan isn't always an option. That’s where Squarespace Capital and Onramp Funds come in. Both offer financing tailored to online sellers, with repayment terms based on your sales. Here’s the quick breakdown:
- Squarespace Capital: Integrated with Squarespace, repayments are a percentage of daily sales, but minimum payments are required - even during slow periods.
- Onramp Funds: No minimum payments, faster approval (within 24 hours), and works for newer stores generating at least $3,000/month in sales.
Quick Comparison
| Feature | Squarespace Capital | Onramp Funds |
|---|---|---|
| Repayment Terms | Percentage of daily sales + minimum payments | Percentage of daily sales, no minimums |
| Approval Speed | Varies | Same-day approval, funds in 24 hours |
| Eligibility | Invite-only for Squarespace users | $3,000+ monthly sales, no credit checks |
| Flexibility | Strains cash flow during slow sales | Adjusts automatically to sales performance |
Both options help you invest in marketing without fixed monthly payments. Choose Squarespace Capital for simplicity if you're already using their platform. Opt for Onramp Funds if you need fast cash and flexibility during seasonal ups and downs.
1. Squarespace Capital
Squarespace Capital offers a financing solution directly integrated with the Squarespace platform. What sets it apart is its repayment structure, which adjusts based on your sales performance. Instead of fixed monthly payments, you repay a percentage of your daily sales. This means during slower sales periods, your repayments decrease, and during busier times, they increase accordingly. Let’s now take a look at Onramp Funds to see how it compares.
2. Onramp Funds
Onramp Funds provides revenue-based financing tailored for Squarespace businesses. Based in Austin, this company focuses on delivering fast, flexible funding solutions, enabling sellers to grow their operations without sacrificing equity.
Approval Speed
Onramp Funds is all about speed when it comes to funding. Here’s how it works: you can get an initial estimate in just one minute. From there, securely connect your Squarespace store in about five minutes, and receive same-day final approval. Funds are then deposited into your account within 24 hours.
"Get funded in less than 24 hours." [1]
This quick process is particularly helpful for Squarespace sellers looking to seize time-sensitive marketing opportunities or seasonal sales spikes.
"Once you sign up and complete the qualification process, we'll have your cash in your bank account within hours (ACH processing times can vary)." [1]
Eligibility Requirements
The eligibility criteria for Onramp Funds are straightforward, making it accessible for many Squarespace businesses. Your store needs to generate at least $3,000 in average monthly sales, but there’s no requirement for how long you’ve been in business. This is ideal for newer stores that are already bringing in steady revenue.
Your business must also operate as a U.S.-based entity, such as an LLC, Single-Member LLC, C-Corp, or S-Corp. A key advantage? No personal credit checks are required. Approval is based solely on your business’s performance and sales data, so your personal credit history won’t be a factor.
Repayment Structure
Forget about fixed monthly payments. With Onramp Funds, repayment is based on a percentage of your daily sales. This means you’ll pay more on busy days and less during slower periods.
This flexible repayment model helps reduce the pressure of meeting fixed deadlines during quiet seasons or unexpected slowdowns. Onramp reviews your sales history, cash flow, and any existing debt to craft a financing plan that matches your business’s performance.
Costs and Fees
Onramp Funds offers multiple funding options, allowing you to choose what works best for your business. Instead of traditional interest, fees are built into your repayment structure.
These fees, which range from 2–8%, are clearly outlined and deducted as part of your daily sales. This transparency helps you plan and budget effectively, especially when allocating funds for marketing campaigns or other growth efforts.
Platform Integration
Onramp Funds is built with Squarespace sellers in mind. Connecting your store is simple - just link it securely to their platform. This gives Onramp read-only access to your sales data and business performance.
The integration serves two key purposes: it enables Onramp to quickly evaluate your business and offer funding, and it automates the repayment process. Once linked, the system tracks your sales and deducts the agreed-upon percentage automatically. No manual payments or invoices are needed, keeping the process smooth and aligned with your daily operations. This seamless setup ensures financing works in harmony with your business flow.
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Advantages and Disadvantages
When deciding between these two funding options for your Squarespace business, it’s important to weigh their repayment terms, flexibility, and overall impact on your operations.
| Feature | Squarespace Capital | Onramp Funds |
|---|---|---|
| Repayment Flexibility | Fixed percentage of daily sales with minimum payment requirements. If sales fall short, the remaining amount is debited from your bank account [2][3]. | No minimum payment requirements. Repayments are tied entirely to sales performance [4]. |
| Payment Structure | Automatic payments based on a fixed percentage of daily sales [2]. Early repayment comes with no additional fees [3]. | Payments are deducted as a percentage of sales deposits. Faster repayment occurs when sales increase [4]. |
| Cash Flow Impact | Can strain cash flow during slower sales periods due to minimum payment requirements. | Less risky during downturns, as payments adjust automatically with sales and have no fixed minimums. |
| Speed | Processing times vary (details not specified). | Funds available within 24 hours, with same-day approval. |
| Eligibility | Requires an existing Squarespace relationship and invitation-based access. | Requires $3,000 minimum monthly sales, with no personal credit checks. |
This comparison highlights how each option caters to different business priorities, helping you choose based on your unique needs.
Key Advantages of Squarespace Capital
One of the standout benefits of Squarespace Capital is its seamless integration into the Squarespace ecosystem. This makes managing your funding and repayments straightforward. Additionally, the ability to pay off your balance early without incurring extra fees gives you more control over your repayment timeline [3]. Payments are initiated automatically within 1–2 business days after receiving funds [3], offering a predictable schedule.
Key Disadvantages of Squarespace Capital
The main drawback lies in the minimum payment requirements, which can be a challenge during seasonal slowdowns or unexpected dips in sales. This can put extra strain on your cash flow during tough periods.
Key Advantages of Onramp Funds
Onramp Funds shines with its flexibility. Without any minimum payment requirements, repayments adjust entirely to your sales performance. This flexibility is especially helpful for businesses with fluctuating revenue. Plus, the 24-hour funding timeline allows you to act quickly on time-sensitive opportunities, such as marketing campaigns.
Key Disadvantages of Onramp Funds
However, with Onramp Funds, repayment amounts increase as your sales grow. While this aligns with your income, it requires careful cash flow management to ensure you’re not caught off guard during high-revenue periods.
Both options remove the burden of fixed monthly payments, making them appealing for businesses that rely on variable sales. Ultimately, the best choice depends on your cash flow patterns and how much flexibility you need to navigate slow or busy seasons.
Final Thoughts
When it comes to choosing between Squarespace Capital and Onramp Funds, the key is aligning the funding option with your business's cash flow and growth needs. Both offer revenue-based financing, but they cater to distinct scenarios.
Squarespace Capital is a great fit for sellers operating within the Squarespace ecosystem who need funds within a few business days. Its integration with Squarespace Payments simplifies fund management, and the option to repay early without penalties adds flexibility. However, the requirement for minimum periodic payments may be challenging for businesses with highly seasonal sales patterns, making it less ideal for those experiencing significant fluctuations in revenue.
On the other hand, Onramp Funds is tailored for businesses with unpredictable revenue streams. With no minimum payment requirements and funds available within 24 hours, it’s an excellent choice for businesses needing quick access to cash - whether for seizing marketing opportunities or navigating slow sales periods. This flexibility makes it particularly appealing for seasonal sellers or those with inconsistent sales cycles.
For businesses with steady growth and consistent sales, especially those already using Squarespace Payments, Squarespace Capital’s integrated approach can help streamline operations. However, if your business requires agility and rapid access to funding, Onramp Funds may be the better option.
Timing is another critical factor. While both options are faster than traditional bank loans, the 24-hour turnaround offered by Onramp Funds can be a game-changer when immediate action is needed.
Ultimately, each option breaks down traditional lending barriers in its own way. The choice comes down to understanding your revenue patterns and growth plans - and picking the solution that aligns best with your business goals.
FAQs
How can I choose the best funding option for marketing my Squarespace store?
When selecting a funding option, it’s important to align it with your business objectives and unique requirements. Squarespace Capital might be an ideal pick if you need quick and seamless access to funds directly linked to your Squarespace store. Its repayment model, based on sales performance, makes it a simple and efficient choice for merchants already operating on Squarespace.
Alternatively, Onramp Funds offers revenue-based financing designed specifically for eCommerce businesses. It’s compatible with multiple platforms, including Squarespace, and features repayment terms that adapt as your sales grow. For businesses seeking scalable funding with a growth-oriented approach, Onramp Funds could be the better option.
When deciding, think about factors like platform compatibility, repayment flexibility, and how the funding option supports your long-term business goals.
What are the eligibility requirements for Onramp Funds, and how do they compare to Squarespace Capital?
Onramp Funds sets its requirements for eCommerce businesses at a minimum of $3,000 in average monthly sales, along with 6-12 months of business activity, and a legally established business entity located in the U.S. This makes it a practical choice for sellers looking to expand their operations through steady sales growth.
In contrast, Squarespace Capital is tailored for businesses in the U.S. and UK that use Squarespace Payments. To qualify, businesses must have been operating for at least 2 years, maintain a credit score of 680 or higher, and show sufficient payment processing activity on the platform.
The key difference between the two lies in their focus: Onramp Funds emphasizes sales performance and business activity, while Squarespace Capital prioritizes platform engagement, transaction history, and credit health.
How does Onramp Funds' repayment structure support cash flow during sales fluctuations?
Onramp Funds provides a revenue-based repayment model designed to align with your sales performance. When sales slow down, your payments automatically decrease, giving you more breathing room to manage cash flow. Conversely, during periods of strong sales, payments adjust upward in proportion, offering a flexible approach that avoids unnecessary financial pressure.
