Merchant Cash AdvanceFrequently asked questions

• Merchant Capital is a South African fintech with extensive experience working with small and medium enterprises (SMEs).
• Nedbank and Merchant Capital are collaborating to measure client interest in changes to the SME lending offering that Nedbank is considering.

Nedbank has invited a select group of businesses to participate in this proof of concept (POC).

When a business has consented to participating in the POC, Nedbank will use the relevant information it has on record to enable Merchant Capital to offer a Merchant Cash Advance to the business within a maximum of 48 hours.

While Merchant Capital does not tell businesses what they should use the advance for, they recommend that it be used for business growth opportunities, for example purchasing stock, improving equipment and technology, completing renovations, or expanding your business portfolio.

• It is an unsecured facility, which means you do not pledge any assets.
• The paperwork is minimal.
• You have quick access to funding.
• The repayment is based on a fixed cost and not an interest rate. This offer is based on your card revenue.

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 one of the business owners must be a South African citizen.

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

Every retail business is unique, which means that a qualifying client receives a customised funding solution. The details will be discussed with you on further engagement with the Merchant Capital Team.

If you have consented to being contacted, Nedbank will inform Merchant Capital of your consent and interest. Merchant Capital will contact you within 24 hours to help you finalise your application.

Should all criteria be met, turnaround times are typically within 48 hours.

Based on your consent to participate in the POC, Nedbank will provide the relevant information it has on you to Merchant Capital to start the process.

Merchant Capital will contact you if anything further is needed before sending you a contract to complete and sign.

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, you may apply for a readvance. This will require another credit assessment to be carried out.

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

For Merchant Capital to disburse 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> widget.
3. Select <Bank Account>. 
4. Select <For my business> option.
5. Follow the prompts to completion.

If you have a Nedbank account with a “dormant” status (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 re-activate a dormant account
4. The monthly repayments can be debited from the account to which your merchant facility is linked.

Please contact Merchant Capital on 011 217 2880.

You have the option of a daily or weekly debit order, calculated as a percentage of your card turnover.

Merchant Capital sets the penalty fees. You can find them in the terms and conditions on Merchant Capital’s website.

Please contact Merchant Capital as soon as possible to make the necessary arrangements.

Please contact Merchant Capital, who will advise you on the appropriate process to follow.