Several former employees of stock-trading platform Robinhood Markets are building a new fintech startup for small businesses.

San Francisco-based Parafin, which is also backed by some of Robinhood's early venture investors, is reaching small businesses via partners to offer online cash advances, a type of financing that's repaid as a percentage of a business's daily sales. Parafin is an early-stage alternative to the likes of Square Inc.'s Square Capital, Stripe Inc.'s Stripe Capital, and other providers of financing for small businesses.