How Capital works

The process to offer business financing with Capital consists of the following stages:

1. You present pre-qualified grant offers to your users.
2. Your user selects a grant offer and signs the terms of service.
3. You make a request to pay out the grant.
4. Your user repays the grant.

The following sections explain details about these steps.

Grant offers

Before offering business financing to your users, Adyen does a proactive risk assessment of your user based on the user's payments data. This assessment results in a maximum of three grant offers that you can show to the user.

Offers are only generated for the users that meet our eligibility criteria. To learn more about the eligibility criteria, reach out to your Adyen contact.

Selecting a grant and signing terms of service

Users must select which grant offer they want. You can, for example, enable the user to select the offer in your user interface.

After your user selects a grant offer, you must present to them the following:

• The terms of the grant offer they selected.
• The Terms of Service related to the Capital product.

In order to receive a grant, your users must accept the Terms of Service even if they have already done so before requesting business financing.

When the user selects an offer and the relevant capabilities have been activated, you can make a request for a grant.

Make a request for a grant

After the user signs the Terms of service, the receiveGrants capability is requested for them. When the capability is enabled, you can pay the grant out to them. To pay out the grant, you must make a POST /grants request.

In the request, you can configure the grant to be paid out to the:

• Balance account linked to their account holder.
• Transfer instrument that belongs to the same legal entity as their account holder.

If you are paying out to a balance account, the funds stay within the balance platform. This might be beneficial if you are using Adyen Business accounts.

In both cases, the funds are booked as incoming transfers to the balance account. In case of a payout to a transfer instrument, an outgoing transfer is automatically booked.

Repaying the grant

To ensure consistent repayment of the grant, we reserve a fixed percentage from each incoming capture of the user. This reservation is deducted daily from net captured volume — captures minus refunds and chargebacks. In case the capture is refunded or charged back, we release the reservation on the day this refund or chargeback is booked.

At the end of the day, we trigger an outgoing transfer from the user's balance account for the entire reserved amount on the given day. This constitutes the real money repayment.

To keep track of the repayments, we calculate a threshold amount — the amount against which we monitor the repayment. If the total 30-day repayment drops below this threshold, we may take additional action to make sure that the user repays on time.