Does my business qualify for a retail cash advance?
You are running a successful business that makes daily transactions with your customers. But does this mean you are considered a ‘retailer’ and does your business qualify for a cash advance for retailers?
What is a retail business?
‘Retail’ refers to a business that sells goods or services in high frequency, directly to the public. This can also include businesses that service other businesses as well. These transactions between the retailer and the client can occur in various ways including online, in a brick-or-mortar space, or through direct sales. A key criteria to call yourself a ‘retail business’ is that the items you sell are for immediate consumption rather than for resale.
How are retailers paid?
Retailers receive their customer’s payment as either cash, EFTS or through card machines.
What types of retailers are there?
Retailers are divided into different categories:
- Hardlines: e.g. Cars, appliances and furniture.
- Consumables: e.g. Apparel, fuel and toiletries
- Food e.g. Baked goods and meat
- Fineries e.g. Art and jewellery
- Services e.g. Hair, medical services or gym
These goods are sold through various outlets including department stores, warehouses, smaller shop establishments and e-tailers. Servicing multiple industry types including:
- Building, Office, Hardware
- Fast Food & Restaurants
- Florists, Gifting
- Fuel Service Stations
- Hair and Beauty
- Health and Gym
- Homeware and Outdoor
- Kids Retail
- Men’s and Women’s Retail
- Travel and Hospitality
- Veterinary and Pet
Does my business qualify for a cash advance for retailers?
With a Merchant Capital Cash Advance, your retail business can access up to 100% of your average monthly credit and debit card turnover upfront, which is then paid back as an agreed- fixed percentage of each future credit and debit card swipe. This continues until the amount is fully paid back.
If your business ticks the above “retailer” boxes, has been in business for over 12 months, with a monthly card turnover of R30 000, then you may be eligible for a cash advance for retailers.
How will a cash advance help my retail business?
At Merchant Capital we trust that nobody knows your business like you do. With this in mind we don’t prescribe use of funds. However we always encourage our merchants to use the working capital to bolster growth enhancing opportunities that will empower your business. Rather than using it to plug holes. This includes things like refurbishments, marketing activities and bulk purchasing etc.
Still not sure if your business is eligible for a merchant cash advance?
Click here to get in touch with our friendly sales team