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Product Guide: Merchant Capital

Merchant Capital Content

MERCHANT CAPITAL WAS ESTABLISHED IN 2012 AS AN ALTERNATIVE PROVIDER OF WORKING CAPITAL, DESIGNED SPECIFICALLY FOR RETAIL SMES IN SOUTH AFRICA


In early 2013, Merchant Capital worked closely with the leading cash advance provider in the US – a company that has provided over $1.2 Billion in funding to over 20,000+ US businesses. Later in 2013, the Capricorn Capital Group invested in Merchant Capital. Capricorn Capital Group is associated with the broader Yellowwoods Group, which includes Hollard Insurance, Clientèle, and Nando’s. In 2015, financial services investment group RMI Holdings acquired a 25.1% stake in the business. Some of the RMI’s underlying investments include MMI, Discovery Holdings and OUTsurance.

These investments in Merchant Capital add great value to the team, bringing many years of success, innovation and experience.

Offering includes

  • UPFRONT CASH ADVANCES
    • Based on your monthly card transactions.
  • UNIQUE REPAYMENT SYSTEM
    • They take an agreed % of all future card sales, big or small, until your advance is fully paid off.
  • FLEXIBLE PAYMENTS
    • When business is slow, you pay less. When it’s booming, you pay off your advance that much faster.


Benefits

  • No hidden costs
  • 80% of clients renew
  • No need to pledge assets
  • Flexible payment terms
  • Funding in 48 hours
  • Quick and easy online application
  • Personalised service
  • Simple assessment process


Do you qualify?

  • Retail business owner
  • In operation for more than 12 months
  • Your average monthly turnover exceeds R30,000 in credit and debit card sales


Finance products include


What Is ‘Alternative Business Funding ’?

Simply put, ‘alternative business funding’ is a broad term that refers to non-banking (often simpler) financial services that fill the gaps in the traditional funding sector. Don’t be discouraged by all the variations out there. Armed with knowledge, there are plenty of credible alternative business financing options that can super-charge your business, at the time when you need it most.


What options are there for alternative business loans?

Short-Term Business Loans

This alternative financing for small business directly aligns with your business’s turnover. It is ideal for boosting young businesses with quick turn-around times and flexibility in how the borrowed money can be used. With short-term business loans, there is less importance placed on credit rating and more emphasis on the business’s trading history. It is most suitable for businesses looking to take advantage of an exciting opportunity or wanting a quick stopgap of working capital.


Unsecured Business Loans

Unsecured business loans boast similar benefits and processing to small business loans, but without restrictions on age or turnover. Here, alternative lending companies give precedence to the applicant’s credit rating. This often results in preference given to those with a solid financial history. Unsecured business loans are best suited to businesses looking for cash to grow and develop, but who do not want to part with equity. But there are risks. Namely, putting up personal assets for a business venture. Most business owners would seek alternatives before parting with a piece of their personal pie.


Asset Finance

Asset finance is another solid option when it comes to alternative business loans. It is well suited to sizable investments that are necessary for future sustainability but are not immediately affordable to a business. This can be anything from investing in high-value kitchen equipment in a restaurant, to panel beating machinery in an automotive repair shop. The finance terms are calculated on the value of the desired asset and the duration of repayment, making this solution suitable for businesses that want to split the cost of an asset into a more manageable repayment plan.


Merchant Cash Advance

A Merchant Cash Advance combines all the best features of the above alternative business loans. Says Dov Girnun, CEO of Merchant Capital,  “The Cash Advance product offers a working capital solution that is much faster than traditional channels. They require less documentation, give flexible terms and ensure a tailored payment plan in line with your business’s turn-over.” A Merchant Cash Advance is best for businesses that use card terminals in their business or that accept large numbers of EFTs.

Further to this, the Merchant Cash Advance doesn’t charge penalties if repayment takes longer than expected. Plus the cash advance is unsecured, meaning that no pledging of assets is needed and no offering of an equity stake is required either. This adds up to lots of wins for a business owner that needs to retain control over all its dealings. Making it one of the top options when it comes to alternative financing for small business.

One of the most loved features of a Merchant Cash Advance is the turn-around times, with funding granted within 24 hours of a full application being received. This means that the merchant can swiftly take care of business, be it refurbishments, buying new equipment or even opening a new store. All these ‘ticks’ make a Merchant Cash Advance a popular choice in the alternative business loans game.

So you found this article on the Merchant Capital website so it stands to reason that the ‘Merchant Cash Advance’ is (of all the alternative business loan sources) the one that they favour most. The bottom line is that they offer this product for good reason: Because everybody wins.

If you are looking for alternative funding for a small retail business that is flexible and forward thinking, with top-notch customer service, Merchant Capital is the finance partner to provide quick working capital for your retail business.