March 9, 2023
min read
Written by: 
Nikolaus Hilgenfeldt

Clearco vs Pipe - Which One Is Better for You?

Starting and growing an ecommerce business can be an exciting journey.

Still, it also comes with its fair share of challenges.

Do you need help finding the right financing option to fuel your growth?

Traditional financing options with daunting paperwork may not always be the best fit.

Well, that's where alternative financing comes in. 

In this blog post, we'll explore the key differences between Pipe and Clearco and help you decide the best financing option for your needs.

So, if you're ready to take your ecommerce business to the next level, keep reading!

1. Clearco vs Pipe – An Overview

Pipe and Clearco are two alternative financing options that have gained significant attention recently. 

Both platforms offer financing solutions for growing businesses, but they differ in several key ways. 

Pipe Overview


Pipe is a unique trading platform that lets businesses turn their future streams of income into cash right away without any restrictions or loss of equity.

This innovative financing solution offers entrepreneurs and business leaders increased cash flow to scale their business operations as needed.

It means investors can potentially earn steady returns while minimizing their risk exposure.

Instead of traditional financing methods, Pipe enables businesses to sell their future monthly, quarterly, or annual recurring revenues to investors.

So, the business agrees to pay the investor a percentage of its future revenue until you repay the investment with interest.

This approach allows businesses to avoid taking on debt, equity dilution, or any personal guarantees.

Who is Pipe best for?

Based in: Miami, USA

Best for:  SaaS companies, D2C subscription businesses, service businesses, media and entertainment companies that need cash runway or growth capital

Amount of funding: $25,000 to $100M.

Clearco Overview


Clearco allows businesses to get non-dilutive funding in exchange for a share of their future earnings.

Clearco provides several loan packages to assist online merchants in the United States obtain capital.

You can choose from various financing options, including a line of credit, advertising funds, and inventory funding.

You can get immediate financing for restocking, supplier payments, advertising, and logistics.

However, Clearco differs from Pipe in that it takes a more data-driven approach to financing.

Also, Clearco doesn't need collateral or personal guarantees, which makes it a good choice for businesses that might not be able to get traditional loans.

Who is Clearco best for?

Based in: Toronto, Canada, with offices in Canada and the United States

Best for: Ecommerce businesses, mobile apps, and software-as-a-service (SaaS) companies.

Amount of funding: $10K to $20M

2. Clearco vs Pipe – Financing Options

Now that we have a basic understanding of Pipe and Clearco, let's compare and contrast the two platforms.

Pipe –  Financing Options

As a non-lending platform, Pipe distinguishes itself from many other finance platforms. 

It does not collect funds for consumer lending.

Instead, it puts them in touch with institutional investors so that they can trade their contracts at the best prices.

The trading limit is based on how much money a company makes regularly and its business's health. 


As a result, as the company grows, so does the trading limit.

Pipe provides funding to businesses across a wide range of industries, including ecommerce, software, fintech, healthcare, and more.

Clearco – Financing options

Clearco, on the other hand, focuses primarily on ecommerce and SaaS businesses.

The platform evaluates a company's revenue and growth potential based on data such as transaction history and customer acquisition costs.


3. Clearco vs Pipe – Amount Of Funding

Pipe and Clearco also differ in the size of the investments they provide. 

Pipe – Amount Of Funding

Pipe's platform is designed for larger investments, typically from  $25,000 to $100M. 

Clearco – Amount Of Funding

On the other hand, Clearco offers smaller investments, which are usually between $10,000 and $10 million.

This difference in investment size is partly due to the types of businesses each platform finances.

Pipe provides funding to a broader range of businesses, many requiring more significant investments to fuel growth. 

Clearco, on the other hand, focuses on smaller ecommerce and SaaS businesses that may require less capital to grow.

4. Clearco vs Pipe – Funding Process

Pipe and Clearco also differ in terms of their funding processes.

Pipe’s Funding Process

Pipe's platform allows businesses to sell their recurring revenue streams to investors, which can take some time to set up. 

Following the signup procedure, the approval process can take anywhere from 2 hours to 2 days. 

However, after approval and other required steps, the funds can be immediately transferred to your bank account.

Clearco’s funding process

Clearco's funding process is fast and straightforward. 

The platform uses a data-driven approach to evaluate a company's revenue and growth potential. Then, it can provide funding in as little as 24 hours. 

The funding process is entirely online, and businesses can access funding without collateral or personal guarantees.

5. Clearco vs Pipe – Fees and Interest Rates

Both Pipe and Clearco charge fees and interest rates for their financing services.

Pipe charges a fee of 6% of the total investment plus a small fee for servicing the investment. 

Additionally, Pipe investors receive a percentage of the business's revenue until the investment is repaid with interest.

Contrarily, Clearco charges a flat fee of between 6-12% of the investment, depending on the size and terms of the investment.

Clearco also gets a share of the business's profits until their money is paid back with interest.

Overall, both platforms provide competitive rates and fees for their financing services.

However, you should carefully evaluate the terms and fees of each platform before deciding which one is right for you.

6. Clearco vs Pipe – Eligibility Requirements

Pipe – Eligibility Requirements

Pipe's algorithm rates your income streams and calculates your level of risk based on secure live data connections. 

In general, higher ratings and more funding are associated with more complete data connections.

To be eligible for financing from Pipe, businesses must meet the following criteria:

  • Have a minimum of $50,000 in monthly recurring revenue (MRR) or annual recurring revenue (ARR)
  • Have at least 6 months of operating history
  • Be based in the United States, Canada, or the United Kingdom
  • Have a subscription-based business model
  • Have a predictable revenue stream

Also, you must be willing to grant access to your financial and operational data, which Pipe uses to decide if your business is eligible for financing:

  • Accounting software
  • Billing subscription or invoice manager (if applicable)
  • View-only business bank feed

Clearco – Eligibility Requirements

Clearco collects and reviews your revenue data when you connect your sales accounts. 

To determine your allowed funding capability, Clearco forecasts revenue across all of your connected sales platforms.

Your revenue data is used to determine your automated weekly payments after you have submitted an invoice and chosen an extension plan.

To be eligible for financing from Clearco, businesses must meet the following criteria:

  • Have a minimum of $10,000 in monthly revenue
  • Have at least 6 months of operating history
  • Be based in the United States, Canada, or the United Kingdom
  • Have a verifiable revenue stream
  • Have a clear plan for growth

Clearco's eligibility requirements are less strict than Pipe's, which makes it a good option for early-stage startups or businesses that don't meet Pipe's minimum revenue requirements.

Overall, the requirements for both platforms are the same in terms of how long a business has been running, where it is located, and how it makes money.

7. Clearco vs Pipe – Drawbacks

While there are quite a few advantages Pipe and Clearco offer, there are also a few disadvantages.

Instead of interest, Clearco charges a flat and fixed cost.

This fee remains constant regardless of how much credit you use for marketing expenses or how long it takes to repay the credit. 

The good news is that you know how much you'll have to pay Clearco to borrow.  

But the downside is that if you only use a tiny portion of the available credit, the effective rate (the fee as a percentage of total credit) may be higher than 12%. 

So it's in your best interest to request a line close to what you'll need to borrow.

Conversely, Pipe connects businesses with institutional investors to find the most profitable pricing for trading their contracts.

This process can be lengthy, depending on your business's overall health and revenue and, ultimately, the interested investors.

Which Platform is Right for Your Business?

Deciding which financing platform is right for your business will depend on several factors, including your industry, growth potential, and funding needs

Let's look at the table comparison between Pipe vs Clearco, and Myos, as a possible alternative.


Myos – A Financing Alternative

Myos is a leading provider of innovative financing solutions for businesses in need of capital. 

Unlike traditional loans, Myos financing does not require any personal guarantees. 

This makes Myos financing an attractive option for businesses that do not have sufficient collateral or credit history to qualify for traditional loans.

Myos uses an AI-powered algorithm to analyze open data and offers the following benefits:

  • Only products as collateral
  • No minimum terms, no fixed fees
  • No personal risk or personal guarantee
  • No documents or private data required
  • Your %-fee depends on your product scoring. 
  • If you repay earlier, you will pay less.
  • Flexible repayment terms, up to 24 months.

Additionally, Myos financing is non-dilutive, meaning that businesses can retain their ownership and control while accessing the capital they need to grow and expand.

The eligibility requirements are the following:

  • Your company has a registered office in Germany, Austria, Estonia, Cyprus or the United Kingdom (UK).
  • Your company has been in business for at least 6 months.
  • Your company has been selling goods for at least 50 days.

Overall, Myos financing provides unique and innovative financing options for businesses that need access to capital quickly and efficiently.

So, get a free, non-binding offer and let your business skyrocket!


What Is Clearco?

Clearco is an ecommerce investor that provides equity-free capital solutions to ecommerce businesses.

What Are Clearco Alternatives?

Clearco's top competitors include Liberis, Silvr, Pipe, and others.

What Is Asset-based Lending?

Asset-based lending is the business of loaning money in an agreement that is secured by collateral.

Keep learning

5 Clearco Alternatives To Consider for Financing Your Business

Viably vs. Clearco - Which One To Choose in 2023?

11 Revenue-Based Financing Companies To Consider in 2023

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