Capital core concepts

The finmid Capital API enables platforms to embed a financing solution directly into their interfaces, allowing businesses to see pre-approved cash advance offers seamlessly within the platform.
The finmid Capital solution is built on the following core concepts:

Platform

A ‘platform’ refers to the software or service that integrates the finmid Capital API to provide financing solutions to its users. The platform acts as an intermediary, allowing businesses to access pre-approved cash advance offers directly within its interface. The platform is responsible for onboarding businesses, presenting offers, and facilitating the acceptance and management of funding and payment processes.

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A platform is finmid's direct customer (i.e. the entity that integrates finmid's APIs). A platform instance cannot be created through a public API - a unique instance is automatically created for each business that finmid enlists as a platform.

Business

A ‘business’ refers to a legal entity onboarded onto the platform that can receive a cash advance offer. If a business has multiple venues under one identifier, it is treated as a single entity, with all venues aggregated.

Offer

An 'offer' is a set of cash advance options available to a business, detailing the advance amount, fee, and payment terms. These offers can be accepted within a specified expiration period.

Funding

When an offer is accepted, a corresponding ‘funding’ entity is created. This ‘funding’ entity describes the conditions of an active advance, including the original payout amount, total expected payment, and current payment progress.

Sales statements

After an offer is accepted, payment amounts are calculated and collected based on the business's sales, as detailed in their 'sales statements'.

Payment Batch

A 'payment batch' represents a grouping of payments reported by the Platform for a specific payment period, market, or other logical grouping. When using the Payment reporting flow, Platforms report individual payments to finmid, which are then aggregated by batch for tracking and reconciliation purposes. Each payment batch contains the total payment amount, platform commission, and a breakdown by Funding.