Lodgify Capital, powered by Parafin, is a capital loan product designed to give you access to loans, a convenient financing option to manage your short-term cash flow needs and make investments to grow your business.
If you have any questions about this integration, please review the dedicated Help Center, which answers many common questions, or contact lodgify-capital@parafin.com.
Read about:
Eligibility
Eligibility is limited to select merchants and requires a sustained sales history with Lodgify. You are eligible for the capital loan only if you have received an email from the Lodgify email address xxx@lodgify.com stating that you qualify for a loan.
Please note that this product is currently available only if you're in the USA.
How it works
The loan option available is a Flex Loan, and the loan will be contracted directly with Parafin. This loan type gives you the option to take out a lump sum and pay it back over time by sending a fixed percentage of your rental business sales.
Parafin will determine the maximum loan amount you can apply for. You can then choose the amount you want by sliding the blue bar:
There are no hidden charges, recurring interest, or prepayment penalties. Below are the details of the fees:
Capital fee
When repaying, a Capital Fee will be added to the amount of the loan. The Capital Fee is the service fee for the loan. It’s a fixed amount based on the total loan offer, and it will never change throughout the duration of the loan.
🔎 For example, if you have a $5 capital fee and your loan amount is $100, the total to be paid back will be $105.
Repayment rate
Loans are repaid with a fixed percentage of your sales, where "sales" refers to confirmed reservations that have been paid out.
🔎 For example, if you have an 11% fixed repayment rate and made $1,900 in reservation sales on day 1, you would repay $209 of your loan for that day:
30-day minimum
Minimum repayments are required every 30 days. If you don’t reach the minimum sales-based repayment by the end of each period, Parafin will automatically deduct the difference from your bank account. If the minimum repayment is met before the end of the period, Parafin will continue to automatically collect repayments based on a percentage of your sales. Also note that the loan must be paid off in full within 18 months.
Contracting your loan
You can contract the loan directly by following the instructions in the email you received. It will typically take 1-2 business days from Parafin’s approval to receive the funds. However, the maximum time for Parafin to disburse the funds is 5 business days.
Please note that Parafin does not run any credit checks, and accepting the loan does not affect your credit score.
Once you decide to accept the loan offer, you will be asked to provide more information, including your bank account details, which should be the same account used for your rental business revenues. The loan repayments will automatically be deducted from this account.
💡 Note: You can only have one loan at a time.