Payment processing technology startup Stripe Inc. today entered business lending with a new service that offers loans to online companies in the United States.

Called Stripe Capital, the lending service launches today with an integrated cash advance service. Loan applications are assessed using Stripe’s existing customer data, negating the need for a lengthy application process. Stripe said approved funds will typically hit the customer’s account the next day.

Describing existing problems for small businesses, particularly online businesses, in obtaining loans from banks and other financial institutions, Stripe is pitching Stripe Capital as making “it easy for internet businesses to get the funds they need, when they need them.”

“Those who succeed at getting loans report spending more than 25 hours on applications and paperwork and then waiting weeks or months for approved funds to actually become available to them,” Stripe said in a statement. “Startups and small businesses create a disproportionate number of jobs, yet these are the very companies whose access to capital has been most curtailed. As a result, easier access to capital has been one of the top requests from Stripe users over the past two years.”

The repayment method used for the product is particularly notable and arguably innovative. Along with Stripe not charging interest or fees for late payments, there’s also no fixed repayment schedule either. Customers repay the loan with a fixed percentage of daily sales, meaning the amount repaid and how long a loan takes to pay off varies depending on sales.

The service is available not only to businesses running Stripe directly but also to platforms and marketplaces on Stripe Connect. That service allows marketplace owners and other businesses to enable their merchants and customers to accept credit card payments.

Stripe isn’t alone among financial-tech companies providing business loans. Rivals Square Inc. and PayPal Holdings Inc. both offer small-business loans and reported significant growth in their loan portfolios in the second quarter, CNBC reported. Amazon.com Inc. also offers a similar service to merchants on its payments network through Amazon Lending.

Image: Stripe