Stripe Capital • Hacker News Board

Re: Stripe Capital

#281

Post by dbkahn » Mon, Sep 09, 2019, 8:40 PM UTC

davidpolberger wrote: post #272

softawre wrote: post #263

Earlier quoted context omitted.

Cool experiment. I don't agree with how you say that 10% is the Quoted Interest Rate, because Stripe isn't doing that. They are saying they have a fixed fee. "Interest rate" means it compounds.

If the HN hive mind can agree on better terminology, I'd be happy to update the calculator.

I would say something like "Loan fee as a percent of amount lent" or (if you wanted to keep it consistent) "Fixed fee as a percent of Principal"

Re: Stripe Capital

#282

Post by coopeteer » Thu, Sep 12, 2019, 3:16 PM UTC

Looks interesting! Has anyone seen a copy of the agreement yet? I'd be interested to see how they handle things like guarantees / security, and whether or not there's any longstop date at which they would expect you to make a single payment if outstanding amounts remain.

Re: Stripe Capital

#283

Post by snorkpete » Mon, Sep 16, 2019, 10:55 AM UTC

laurentb wrote: post #78

pc wrote: post #59

Earlier quoted context omitted.

[Stripe cofounder.] > But one thing strikes me as odd about this whole arrangement. The better a business performs, the quicker it is able to repay the loan, and the higher its effective APR becomes! It's essentially a prepayment penalty in disguise. So you'd better make sure the loan doesn't help your business too much, or you'll end up getting hosed by the loan fee. Yes, this is right -- if your business suddenly s…

In this case, then surely showing a calculator straight on the page allowing people to see what APR they would get based on their payment/sales configuration would make the whole process more transparent and easier to understand by people who might not be savvy enough to understand the nuances then?

Why is everyone using the term APR? It's not compound interest. If I take 2 or 3 or 5 years to pay back, I don't get charged more. The cost of the loan is fixed at 10% of the principal, regardless of how long you take to pay it back. There's no compounding, so using the term APR makes it sound nefarious when it isn't.