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Does my business qualify for a retail cash advance?

By Dov Girnun, CEO of Merchant Capital

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 serve other businesses as well. These transactions between the retailer and the client can occur in various ways including online, in a brick-and-mortar space, or through direct sales. A key criteria to calling 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:

  • Automotive
  • Bridal
  • Building, office, and hardware
  • Butcheries
  • Electronics
  • Fast food and restaurants
  • Florists and gifting
  • Fuel service stations
  • Hair and beauty
  • Health and gym
  • Homeware and outdoor
  • Jewellery
  • Medical
  • Liquor
  • Kid’s retail
  • Men’s and women’s retail
  • Nurseries
  • Supermarkets
  • 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 at 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 the 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.

Merchant Capital is a proud Partner of the NSBC.