This page covers the basics of Adyen Capital. You can learn about the eligibility requirements, financing process, and the structure of financing offers.
Eligibility
To offer business financing to your users, they must meet specific requirements regarding their location, business type, and processing history
Minimum eligibility requirements
To qualify for a financing offer through Capital, your users must:
- Be located in a supported country or region and have an eligible legal entity type.
- Have processed payments with Adyen for at least three consecutive months (90 days).
- Maintain a processing volume of at least 1,000 EUR, GBP, USD, or AUD for a minimum of three consecutive months.
- Not operate in a high-risk industry as defined by payment risk categorization.
Note that meeting these minimum eligibility requirements does not guarantee qualification for a Capital offer.
Eligible legal entity types
The following table shows the legal entity types that are eligible for financing through Capital.
| Country/Region | Organization | Unincorporated partnership | Sole proprietorship | Trust |
|---|---|---|---|---|
| Australia |  |
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| Canada (excluding Saskatchewan) |
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(excluding Quebec) |
(excluding Quebec) |
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| Finland | |
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| France | |
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| Sweden | |
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|
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| United Kingdom (including the Channel Islands and Isle of Man) |
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| United States (including Puerto Rico) |
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Financing process
The process of offering business financing through Adyen Capital follows a specific lifecycle, from risk assessment to repayment. The following table outlines each phase of this process:
| Phase | Description |
|---|---|
| Risk assessment and underwriting | Adyen configures the required capabilities for your user and assesses the risk of their account. This assessment, based on your user's payments data, determines which financing offers are available to your user. |
| Offers | Adyen generates financing offers for your user based on the risk assessment. Depending on your integration (API or UI components), users are presented with specific options or a maximum limit. |
| Terms of Service | After selecting their preferred financing offer, the user accepts Adyen's Terms of Service. Upon acceptance, the required capabilities are enabled on the user's account. |
| Fund disbursement | The grant amount specified in the offer is disbursed to the user's balance account. The funds can also be transferred to the user's verified bank account (transfer instrument) if provided in the API request. |
| Repayment | Repayments are primarily handled through scheduled repayments, where Adyen automatically deducts a fixed percentage from the user's daily net captured volume. Users in certain regions can also make unscheduled repayments. Adyen monitors progress against a minimum 30-day threshold to ensure timely repayment. |
The following sections provide more details about each phase of the financing process.
Risk assessment and underwriting
Adyen Capital requires users to have specific capabilities. In most cases, Adyen automatically configures and requests the necessary capabilities for your business when you design your implementation.
After the necessary capabilities are requested, Adyen assesses financing risks based on the user's payments data. This risk assessment defines which financing offers are available to your users.
Financing offer
Based on the results of the risk assessment, Adyen generates financing offers for your users. Each offer includes the following information:
- The grant amount available to the user.
- The fee associated with the grant.
- The repayment terms for the grant.
Based on the risk assessment, Adyen generates offers as follows:
- If you are using an API-only integration, Adyen generates a maximum of three offers that you can present to your user. Each offer includes different grant amounts.
- If you are using UI components, Adyen determines a maximum grant amount that your user qualifies for. Your user can select any grant amount that does not exceed the maximum grant amount.
Terms of Service
After your user selects an offer, you must provide them with the following information:
- The terms of the selected offer.
- The Terms of Service related to the Capital product.
Depending on your implementation:
- If you are using an API-only implementation, you must generate a Terms of Service document, present it to the user, and request their acceptance.
- If you are using UI components, the user will complete this step as part of the prebuilt user flow.
To receive a grant, users must accept the Terms of Service for Capital, even if they have already accepted them previously when requesting business financing. When a user selects an offer and signs the Terms of Service, the necessary capabilities are enabled. The grant can then be disbursed to the user.
Fund disbursement
After your user signs the Terms of Service, the necessary capabilities become enabled for them. You can then proceed to disburse the grant to your user.
The amount that you disburse to the user is called a disbursement. The disbursement is assigned a unique identifier that enables you to:
- Manage disbursement configuration.
- Track the disbursement data, including repayment progress and outstanding amounts.
You can configure the grant to be disbursed to the user's balance account or their transfer instrument (a bank account verified by Adyen). You can specify the desired destination of the disbursement in your API request to configure a grant:
- The grant amount is initially disbursed to the balance account linked to the account holder of your user.
- After the initial disbursement has settled, you can instruct Adyen to transfer the grant amount to the user's transfer instrument by indicating this in the same API request.
Repayment
Adyen offers two options for grant repayment:
- Scheduled repayments: Adyen automatically reserves and deducts a fixed percentage from each processed sale. This is the default option and is fully managed by Adyen.
- Unscheduled repayments: This option allows users to make early repayments or address missed payments. It requires additional action from you.
Both repayment options are available regardless of your chosen integration option (UI components or API).
Structure of the financing offer
Each Capital offer has the following elements:
| Element | Description |
|---|---|
| Principal amount | The amount that the user is prequalified to receive. |
| Fee | The fixed fee on top of the principal amount. |
| Daily repayment rate | The percentage of the user's daily net captured volume that is reserved each day for the repayment of the total repayment amount. The total repayment amount is the sum of the principal amount and the fee. |
| Repayment threshold | The minimum amount that the user is expected to repay every 30-day period. The repayment threshold monitors that your user fully pays off the grant within the expected repayment period. If the total 30-day repayment drops below this threshold, Adyen may take additional actions to ensure that the user repays on time. |
| Maximum repayment period | The period in days or months during which your user must repay the grant amount in full. |
Integration options
Adyen provides two options for integrating with Capital:
- Prebuilt UI Components: Use our Capital components to seamlessly integrate all Capital features into your user interface with minimal engineering effort. This option eliminates the need for multiple API requests to access offers, generate Terms of Service, or manage disbursements, as everything is managed automatically. For more details, refer to the integration steps overview.
- API-only integration: Use our Capital API for complete control over the integration process, allowing you to create a custom user interface for offering Capital. For more details, refer to the integration steps overview.