Thanks for your interest in HoneyBook Capital! Please note that at the moment, this feature is available to limited users, but we're hoping to expand that soon — keep checking back!
What is HoneyBook Capital?
HoneyBook Capital gives businesses access to the capital they need, but faster and easier than traditional loans and with a single fixed fee — that means no periodic interest charges, no monthly bills, no late fees, and no prepayment penalties!
Once you have agreed to your loan terms, funds are deposited into your account as quickly as the next business day, allowing you to invest in your business immediately to increase inventory, purchase equipment, hire employees, and more.
Repaying your loan is as easy as going about your daily business: a percentage of your client payments will automatically be put towards your loan repayment until it’s complete.
HoneyBook Capital is available to select businesses that already process payments through HoneyBook, and eligibility is primarily based on your sales history. All loans through HoneyBook Capital are issued by Blue Ridge Bank, National Association and serviced by jaris Funding LLC.
How do HoneyBook loans work?
HoneyBook Capital is a small business loan that you can use to invest in your business right away. There are no periodic interest charges, monthly bills, late fees, prepayment fees, or penalty fees of any kind — you’ll simply pay one fixed fee. Your loan and fee repayment will happen automatically, as a percentage of daily credit card sales are put towards the balance.
Here’s how it works:
Step 1: Receive a custom HoneyBook Capital offer
Eligible merchants will receive a loan pre-offer in their HoneyBook Dashboard. Please keep in mind that each offer is subject to credit review, and receiving a pre-offer does not guarantee that your loan will be approved.
Step 2: Select your desired loan amount and apply
You can request any amount, up to the maximum amount pre-offered.
Then, apply for the loan by entering in any relevant Owner, Business, and Bank information. Since you have a history with HoneyBook, we’ll go ahead and pre-fill as much info as we have on hand to save you time.
Step 3: Accept the terms to execute your loan
Once your loan application is approved, you’ll receive a loan offer! The terms of the offer will detail your loan amount and the fixed fee, as well as repayment details such as the percentage to be deducted from each client payment and the estimated repayment time.
Step 4: Watch the money roll in
Loan approval generally takes 1-2 business days, and once you’re approved, you’ll receive the funds in your account as soon as the following business day!
Step 5: Repay your loan automatically
Beginning the day you receive your funds, HoneyBook will deduct the predetermined percentage of each client payment to put towards your loan repayment, which will continue on all client payments until your balance is paid in full. You can also make manual payments, or even pay the loan in full with no early prepayment fee!
Capital loans have an estimated payback of 9 months. That means if you are transacting as usual, your loan will be fully paid in 9 months. However you have a maximum loan term of 18 months just in case things are a bit slower and it takes longer to pay off.
Any outstanding balance due at the end of the maximum term will be collected automatically via ACH.
Once approved, when will I receive my funds?
Approval of your loan can take 1 - 3 business days, and once you’re approved, the funds will be sent to your bank account as soon as the following business day! Deposit times may vary, but can deposit within 24 hours.
What can I use my loan for?
HoneyBook Capital loans are for business and commercial purposes only. Our customers use their loans to buy inventory or equipment, hire staff, open new locations, help with temporary cash flow needs, and more!
How can I become eligible for a loan?
HoneyBook Capital is currently an invitation-only program for eligible HoneyBook merchants. Eligible merchants receive an offer in their HoneyBook account under the Capital section within Finance tools. Please keep in mind that each offer is subject to a credit review, and receiving an offer does not guarantee that your loan will be approved.
Can I cancel my loan once I've accepted?
You are unable to cancel your loan once you have accepted it, as funds are sent immediately after accepting a loan. Please reach out to [email protected] with further assistance on this.
Applying for a loan
What info do I need to provide to apply for my loan?
The application process for HoneyBook Capital will involve 3 sets of information: Owner Information, Business Information, and Bank information. This is similar to the information you provided when you originally set up your bank account through HoneyBook. Since you’ve already provided much of this information, we’ll pre-populate any info we can to make the process easier for you.
Social security number
Date of birth
Business legal name
“Doing Business As” name
Business tax identifier
Business establishment date
Business phone number
Business email address
*Your bank information must match the bank you use for your HoneyBook account.
Will my credit score be affected if I use HoneyBook Capital?
No, your credit score will not be affected based on your application. The application will run a “soft pull,” which does not create an inquiry on your credit report.
Though your credit score plays a role in determining whether you qualify for a loan, HoneyBook determines your eligibility based primarily on your business’ sales history.
Does applying for a HoneyBook Capital loan require collateral?
We don’t require a personal guarantee, such as a personal home or car, as collateral. However, as part of the agreement, the borrower does grant the lender the right to file a first lien security interest (i.e. a legal claim) to the assets of the company. This is in case you are no longer able to make payments on the loan and the company’s assets need to be liquidated to cover the outstanding balance.
Why has my pre-offer expired?
There may be times when, due to a change in your transaction history or upcoming payments, we may no longer be able to provide a Capital pre-offer. Eligibility will fluctuate throughout the year as your business does, so please check back again down the line to see if we’ve been able to provide you with a pre-offer once again.
How do I sign my agreement?
Agreement of the loan happens electronically. Once approved, you’ll be able to review your loan offer and select your desired amount in the Capital tab within your HoneyBook account. In this same section, you’ll be able to download your loan contract and check off an agreement to the terms of the contract below before accepting the loan offer.
What happens if my credit is frozen?
If your credit is locked or frozen, please contact the appropriate agency (such as Experian, TransUnion, or Equifax) to allow our partner company, jaris, to run the soft credit pull at the time you are completing the application. If they cannot perform the pull, a jaris team member will contact you to confirm.
Additionally, if you have a Fraud Alert on your credit report, the jaris team will reach out to verify your identity.
Do I need to change anything about how I receive my payments?
Not at all! With HoneyBook Capital, repayments occur automatically as a percentage of your client payments and are processed through our partners.
Will my loan offer expire?
Yes — your HoneyBook Capital offer is good for 10 calendar days. Your offer will have a specific expiration date and time, and will remain available through the HoneyBook site until then. Once your offer expires, you’ll just need to head back to the Capital tab in your HoneyBook account to reapply.
What happens if I reject my loan offer?
Once your loan application is approved and you receive a loan offer, you are able to either accept or reject the offer. If you reject the offer, it will be rescinded and removed from your HoneyBook Capital Dashboard. You can always reapply for a loan after rejecting an offer.
Why don’t I see an offer in my Dashboard?
You will only see a tab for Capital in your HoneyBook account if you are currently eligible for the feature; if you don’t see the Capital tab, that simply means your business isn’t currently eligible for HoneyBook Capital — but don’t worry! Accounts are reviewed for eligibility on a daily basis, and we will automatically update your Dashboard and notify you by email when you have a loan pre-offer. Eligibility is based on a variety of factors related to your HoneyBook account, including payment processing volume, account history, and payment frequency.
Please note that HoneyBook Capital is unable to manually generate offers.
Why was I declined after receiving an offer?
After you receive a pre-offer for a loan through HoneyBook Capital, your information goes through a verification process. If you were declined in this step, you’ll receive an email that details the reason.
We understand being declined can be disappointing, and we’d like to do our best to increase transparency behind this process.
What are the reasons for being declined?
There are a few requirements that must be met in order to qualify for a loan, and being declined may be due to things like material changes in the company's health. This might include delinquencies, bankruptcy, and a significant drop in credit scores.
Why was I declined for an additional loan?
We review every offer on a case-by-case basis, independently from any loan. Even if your most recent request for a loan through HoneyBook Capital has been declined, it does not prevent you from becoming eligible for another one through HoneyBook Capital in the future. We routinely review the eligibility of our sellers and if your business becomes eligible to request a loan again, you will see loan offers in your HoneyBook Dashboard. Offers are based on a variety of factors including payment processing volume, account history, and payment frequency.
What fees do I have to pay with HoneyBook Capital?
Unlike traditional loans, HoneyBook Capital charges a single, fixed fee that you’ll know before you accept your loan. That means no periodic interest charges, no prepayment penalties, no hidden fees, and no late fees.
Your fixed fee will be clearly noted in your loan terms, so make sure to review carefully before accepting. This fixed fee is the difference between your loan balance and the loan amount.
Loan Amount: $2,000
Fixed Fee: $300
Total Amount Owed: $2,300
What is my interest rate?
There are no ongoing interest charges. Instead, the total borrowing cost of your loan is just one fixed fee. There are also no prepayment penalties, no hidden fees, and no late fees!
How is my fixed fee calculated?
The fixed fee for your loan is based on your sales history, your loan amount, and the repayment percentage. The fee will be clearly noted in your loan terms, so make sure to review carefully before accepting!
How do I repay my loan?
Much like your credit card processing fees, repayments are automatically deducted as a percentage of your client payments within HoneyBook until the loan amount and fee are paid in full.
Since the repayment amounts are percentages of transactions, this means that your repayment speed matches your business’s cash flow — you’ll pay more when business is strong, and less if things slow down. Regardless of those repayments amounts, the total amount owed (the loan amount plus fixed fee) never changes.
You can also make manual payments to repay the loan from the HoneyBook Dashboard — there’s no fee to do so!
When does repayment begin?
Repayment begins the same day funds are deposited into your bank account. A fixed percentage of your client payments will be automatically deducted and applied toward your loan balance as soon as sales occur.
What is the repayment percentage?
The repayment percentage is the amount of each client payment that automatically goes toward repaying your loan. The percentage will vary based on your loan amount, and you can find the percentage withheld from client payments under Repayment Details in your loan offer.
Where can I see my loan repayment progress?
Once you have accepted your loan offer, you will have access to your HoneyBook Capital Dashboard to track the progress of your repayments. In the dashboard, you will be able to see the total amount repaid against the total amount owed, along with a list of client payments that have contributed to your overall repayment.
Where can I see my loan due date?
While your loan offer factors in a repayment period of 18 months, your loan repayment period varies based on your volume of client payments booked for the future. So if business is doing well, you may pay off your loan sooner than planned. If after 18 months, there is still a balance on your loan repayment, it will need to be collected in full at that time.
Is there a minimum payment?
Yes, for an 18-month term loan, you’re required to pay at least 1/18th over a rolling 60-day period. For a 4-month term loan, you're required to pay at least 1/6th over a rolling 30-day period.
For example, if you have a 60-day rolling period, this means from days 0-60, the payment sum must be 1/18th of the total loan amount. On day 61, the rolling payment period remains 60 days, and looks at the payment sum on days 1-61, days 2-62, and so on. During each of these periods, the payment sum must be 1/18th of the total loan amount.
If there is a balance at the loan’s maturity, the remaining balance will need to be collected in full at that time. For most merchants, regular processing volume will cover the minimum payment.
Can I make additional payments toward my loan balance, independent of my sales?
Of course! You’re welcome to make additional payments manually — or even pay the loan in full, with no early repayment fee — through the HoneyBook Capital Dashboard. Automatic payments as a percentage of your sales will continue, even if you make additional payments through the HoneyBook Dashboard, until your balance is paid in full.
Can I pay off my loan early?
Yes! You can submit prepayments or pay off your loan at any time at no additional cost in the HoneyBook Capital Dashboard. Repayment will come directly from the bank account connected to your HoneyBook account. At this time, we can’t accept prepayment via debit card, credit card, or ACH from another bank.
Will I see savings or have to pay an early repayment fee if I make additional payments?
No — since your fixed fee is determined at the time of application, it won’t change as a result of additional payments or early repayment. However, there’s also no early repayment fee if you do choose to make additional payments or pay the loan in full!
What happens if I haven’t repaid the loan in 18 months?
Any outstanding balance due at the end of the maximum term will be collected automatically via ACH.
What is the difference between the loan maturity and the estimated payback period?
The loan maturity is the date on which the loan is due. HoneyBook Capital loans mature at 18 months following the day you accepted the loan. After 18 months, full repayment will be needed if there is an outstanding balance.
The estimated payback period is the period of time within which most loans are repaid given the withholding percentage from client payments. Most loans are repaid in less than a year.
Once I pay off this loan am I eligible for a new one?
If your business currently has a loan through HoneyBook Capital, it may become eligible for a subsequent loan offer. HoneyBook Capital will automatically reevaluate your business for new offers — no need to even ask! If you are eligible, you will be able to apply for an additional loan through the Capital tab in your HoneyBook account. While we are routinely reviewing your account for eligibility, keep in mind that another offer is never guaranteed.
What happens if I refund a payment that was used for a loan payment?
If you refund a client payment that was used to pay off part of your loan, the refund for the full amount will go through to your client. However, the percentage that was used to pay back the loan will be taken out from your funds through whichever method you use to refund. For example, if you had a $200 client payment where 10% was taken out for loan repayment, and you refund that $200 back to your client, the $20 that was taken for repayment will not be reimbursed to you and will be included in the charge to cover the refund.
How long does it take to receive loan funds?
Approval of your loan can take up to 2 business days, and once you’re approved, the funds will be deposited in your account as soon as the following business day!
Do you offer loans in all 50 States?
We provide loans to 47 states and are planning to expand into the remaining states soon. Loans are currently not available in Nevada, North Dakota, and Vermont.
Why can’t I obtain a loan for less than $25,000 if my business is in Rhode Island?
Rhode Island requires additional obligations for companies offering loans of $25,000 or less. We are working with state regulators to offer smaller loans, but until then we can only offer loans greater than $25,000 to sole proprietors.
Why can’t I obtain a loan for less than $5,000 if my business is in New Mexico?
New Mexico requires additional obligations for companies offering loans of $5,000 or less. We are working with state regulators to offer smaller loans, but until then we can only offer loans greater than $5,000.
Want to learn more?
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!