Merchant Cash AdvanceFrequently asked questions

A select group of businesses will receive an offer for a Merchant Cash Advance based on their existing relationship with Nedbank. Once a business has agreed to proceed, Nedbank will share the relevant information it has on record with Merchant Capital, who will then finalise the offer and pay out the funds – typically within 24 hours.

While Merchant Capital does not prescribe how businesses use their Merchant Cash Advance, they do encourage businesses to use it towards growth initiatives such as buying inventory, upgrading equipment and technology, making renovations, or expanding business operations.

•  It’s an unsecured facility, so the businesses do not need to pledge any assets.
•  It requires minimal effort from the business, thanks to the pre-assessment and streamlined process.
•  It provides quick access to funding.
• It offers repayments that are based on a fixed cost rather than an interest rate.

The business needs to meet the following criteria:

• Be registered in South Africa.
• Have been operational for at least 2 years.
• Have been trading on card terminals for at least 12 months.
• Have been a Nedbank card-accepting merchant for at least 3 months.
• Be based in South Africa, and at least 1 of the business owners must be a South African citizen.
• Satisfy Merchant Capital’s credit assessment parameters.

Your business could qualify for up to 100% of your average monthly credit and debit card turnover, but the actual amount will be determined once a credit assessment has been conducted.

The offer can be tailored to each business, and Merchant Capital will confirm the cost when you decide to continue.

• Nedbank will notify Merchant Capital once the business has consented to being contacted.
• A Merchant Capital consultant will be in touch within 24 hours to help you finalise your Merchant Cash Advance.

Funding typically happens within 24 hours, provided all criteria have been met.

Once you have given consent, Nedbank will securely share the relevant information with Merchant Capital, who will contact you directly if additional documents are required before sending your Merchant Cash Advance contract for signing.

Yes, since the product is an unsecured funding solution, Merchant Capital is required to check with the supplied references as well as run personal credit checks.

After repaying 70% of the advance, the business may apply for a readvance. This may require another credit assessment to be carried out.

All Nedbank card acceptance merchants are eligible, based on consent.

 An approved offer is an unconditional offer, which means that Merchant Capital simply requires a business’s know-your-client (KYC) details and consent to complete the contract and pay out the funds into a Nedbank account.

A preapproved offer is an estimated offer that is made based on the information available. Additional information may be required by Merchant Capital to validate the offer. The final offer may be different from the original.

All Nedbank card acceptance merchants are eligible, based on consent.

Do I need to have a Nedbank account?

 For Merchant Capital to pay out the Merchant Cash Advance, a Nedbank account is required.

If you do not have a Nedbank account, you may open a free Nedbank account by following these few easy steps:

1         Log in to the Nedbank Money app.

2        Select the Applications > Bank account > For my business.

3        Follow the prompts to completion.

If you have a dormant Nedbank account (i.e. has not been used in a while):

1         Log into the Nedbank Money app.

2        Select your dormant account.

3        Follow the prompts to reactivate it.

The monthly repayments can be debited from the account to which your merchant facility is linked.

Please contact Merchant Capital on 010 592 9611.

Repayments occur daily for the term of the Merchant Cash Advance and are collected daily as a fixed percentage of your business’s daily card turnover.

No penalty fees apply for Nedbank merchants. Should there be a repayment problem, Merchant Capital will work with you to resolve the issue.

Please contact Merchant Capital on 010 592 9611, as soon as possible to make the necessary arrangements.

Both options are possible, and the Merchant Capital Team will advise you on the appropriate process to follow. No penalty is charged for early settlement.