What is a Flex Loan?
Parafin, our third-party partner, provides access to fast and flexible financing to help grow your business. A Flex Loan is a one-time lump sum amount. However, unlike a conventional term loan, repayments are daily and based on a fixed percentage of gross sales. Repayments are automatically debited from the bank account associated with your TikTok Shop payouts. There is a 30-day required minimum payment amount, which you will see in your pre-approved offer details.
How does it work?
Easy Application
Eligibility is based on your TikTok Shop sales, so applying will not impact your credit score. There are no credit checks (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, just one flat fee that is paid over the term of the loan.
Sales-based Repayments
Repayments are based on a fixed percentage of gross sales. They are automatically debited from your bank account every day. Since repayments are flexible, there are no late fees or prepayment penalties. There is a 30-day required minimum payment amount, which you will see in your pre-approved offer details.
What Is the Difference Between a Flex Loan and a Term Loan?
If you’re looking for information on term loans, please visit
here.
What Can I Use a Flex 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.
- 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.
- If eligible, view details and select your pre-approved offer amount.
- Verify your legal name and home address.
- Verify your date of birth, and SSN or TIN.
- Enter your business details.
- We'll check the information you submitted. This may take a few moments.
- 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.
- If you are approved, you can review the loan details, and accept the funds. Once you click "Accept," Parafin will initiate the funds transfer.
- 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
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.
