MERCHANT CASH ADVANCE
Flexible fast finance option designed initially for businesses that accept payments through a card facility and has also been adapted for customers who receive numerous EFT payments.
Finance up to
Maximum R5 million.
Fixed Mark Up
Starting Factor Of R1.15.
Application Process
Applications are processed in 2-3 working days. Once approved, funds are disbursed within hours.
A quick breakdown of the merchant cash advance to see if the model works for you.
MERCHANT CASH ADVANCE
Application turnaround time
Applications take 2-3 working days.
No security required
An MCA requires no collateral against the advanced amount.
Funding Values
R30k up to a maximum of R5 million
Interest Rate
Works on a fixed markup with no interest.
Settlement
Early settlement can result in discounts on the Cost to capital amount.
TRADITIONAL LOAN
Application turnaround time
Applications can take as long as 3 months.
Security Required
On most Bank approved business loans, the bank will require some form of collateral against the loan amount.
Funding Values
Fund values only over R1 million
Interest Rate
Profile dependence can fluctuate depending on repayment, risk, and annual interest increase.
Settlement
Penalties can apply for early settlement.
A merchant cash advance, also known as an MCA, is a short term working capital solution. An MCA provider can advance you anything between R30k up to R5 million based on this history of your card or EFT transactions over a 6-month average. A fixed cost is added to the capital you receive vs. a standard interest rate, therefore you know from the offset how much the MCA will cost you. It is a standard sales and purchase agreement with the MCA provider buying a portion of your future receivables. As the funding is unsecured, no collateral is required against an MCA. Repayment terms are anything between 6 and 18 months at most, this type of finance is paid back on a daily basis (against a percentage of your card turnover), or on a weekly basis (If the company receives the majority of EFT sales). .
An MCA advance is unsecured and unrestricted. Therefore the funds can be used for anything. It is extremely rare for the MCA provider to stipulate the use for the advance.
1. Apply online at Hashtag funding the application process is free.
2. Provide the hashtag representative with all the documents required to process the application.
3. Application is submitted with the lender best suited to your business. the underwriting process is anything between 2-3 working days.
4. The lender might require some additional information to conclude the process.
5. On approval, once the contract is signed funds will be in your designated account in less than 24 hours.