What Is a Term Loan?

Parafin, our third-party partner, provides access to fast and flexible financing to help grow your business. A term loan is a one-time lump sum amount that has a fixed repayment amount and schedule. Term loan repayments are biweekly, and automatically debited from your bank account associated with TikTok Shop.

How Does It Work?

Easy Application

Eligibility is based on your TikTok Shop sales, so applying will not impact your credit score. Parafin does not require a credit check (hard or soft inquiries).

Quick Funding

If approved, you can get funding in as little as 1 business day. Most approved sellers complete the application and get funds in 1-2 business days.

One Fixed Fee

There is no interest or sign-up fee, just one flat fee that is paid over the term of the loan. Plus, no prepayment penalties or late fees.

Predictable Repayments

Repayments are a fixed amount and automatically debited from your bank account every 2 weeks. There are no late fees or prepayment penalties.
What Is the Difference Between a Flex Loan and a Term Loan?If you’re looking for information on Flex Loans, please visit here.

	Term	Flex
Offer size	Up to $2M	Up to $2M
Eligibility criteria	Sales historyDepending on your offer, we may ask for additional documents like bank statements or tax returns.	Sales historyDepending on your offer, we may ask for additional documents like bank statements or tax returns.
Application time	Typically 1-2 business days	Typically 1-2 business days
Cost	One fixed fee	One fixed fee
Repayments	Biweekly repayments that are based on a fixed amount	Daily repayments that are based on a fixed percentage of gross sales. Repayment amounts are based on gross sales, not payouts, and do not take reserves into account.There is a 30-day required minimum payment amount. You will see this amount in your offer details.

What Can I Use a Parafin Loan For?

You can use the funds for business purposes such as inventory, marketing, fulfillment, payroll, product expansion, and more.

What Is the Application Process?

The application is primarily verification of business and personal details. There are no credit checks, so applying will not impact your credit score. In some cases, Parafin may ask you for additional documents. Here is an example of our application process, starting with the Capital page in Seller Center.

1. See if you're eligible through the Capital tab in Seller Center. If you are interested, agree to share your sales data with Parafin and view your pre-approved offer.
2. If eligible, view details and select your pre-approved offer amount.

3. Verify your legal name and home address.

4. Verify your date of birth, and SSN or TIN.

5. Enter your business details.

6. We'll check the information you submitted. This may take a few moments.

7. Link the bank account associated with your TikTok Shop payouts. You can either use Plaid (by clicking "Link bank account") or manually link your account.

If you click "Link bank account," you will be asked to connect your account through Plaid. If you do not wish to link with Plaid, you can still enter your bank details manually. You will need to upload several statements for verification purposes.

8. If you are approved, you can review the loan details, and accept the funds. Once you click "Accept," Parafin will initiate the funds transfer.

9. If successful, you will see a confirmation page with the same loan details. You will also receive a confirmation email, and an email when the funds have been deposited into your account.

Frequently Asked Questions

Who is Parafin?	Parafin is a third-party partner that provides access to capital. Parafin has obtained the necessary legal authorization to provide financial services in each state they operate. Financing programs through Parafin adhere to specific regulations and guidelines set by each U.S. state within its jurisdiction. All Parafin loans are issued by Celtic Bank.
How do I know if I am eligible?	If you are eligible, you will see a pre-approved offer from Parafin on the Capital tab in Seller Center. You may also receive an email or see a notification.
Does the offer expire?	Yes, eligibility is reviewed on a regular basis and based on recent sales history.
How does Parafin determine eligibility?	Parafin determines eligibility based on recent sales history on TikTok Shop.
How fast can I get approved?	Once you submit your application, you can get a decision in as little as 1 business day.
What is the capital fee?	The capital fee is one flat fee paid over the term of the loan. There are no other fees, such as prepayment penalties or late fees.
How fast can I get funding?	If approved, you can get funds in as little as 1 business day.
Can I have more than 1 loan at the same time?	At this time, you cannot have more than 1 loan at the same time.
Will this impact my credit score?	Applying will not impact your credit score. Parafin uses sales data to determine offer eligibility. There is no hard or soft inquiry.
How do repayments work?	Repayments are a fixed amount and automatically debited from your bank account every 2 weeks. There are no late fees or prepayment penalties.
Are there restrictions on how I can use the funding?	Yes, Parafin loans can only be used for business purposes, such as inventory, marketing, fulfillment, payroll, product expansion. Funds cannot be used for personal or household expenses.
I have more questions. Who can I talk to?	You can look up more FAQs and/or contact Parafin's support team by clicking here.

All Parafin loans are issued by Celtic Bank. All loans and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice. Loans are governed by the Loan Agreement and Parafin's Privacy Policy. Bank transfers are subject to review.