SERIES 3/3: How Merchant Capital Can Help Your Business Through Current Interest Rates
In the ever-changing SME environment, various factors can make or break a business. In the first two blog posts, we examined interest rates and their effects on businesses, as well as how FinTechs offer alternative funding options to help address challenges like high interest rates and decreased market spending. In this third installment, let’s explore how FinTech lender Merchant Capital can help your business navigate these challenges effectively.
Flexible Funding
FinTech banking has transformed the lending industry, making it faster, more accessible, and better suited to the needs of SMEs. FinTech lenders utilize technology to streamline the application process, enabling faster decision-making and more flexible terms. Their offerings include industry-specific products ranging from short-term loans to invoice financing, giving businesses the freedom to select funding options that fit their budgets and financial goals. With a combination of technology, flexibility, and speed, fintech lending is becoming the first choice for many SME owners.
Super-Quick Turnaround Times & Bespoke Offerings
For business owners, time is money. FinTech lending platforms provide quick access to funding, making a significant difference for SMEs needing to capitalize on opportunities or manage cash flow urgently. Traditional lending often overlooks the specific needs of various sectors. In contrast, Merchant Capital offers products tailored for different industries, allowing fast funding for medical practices, legal firms, retail stores, and more.
Merchant Capital Cash Advance
The Merchant Capital Cash Advance (MCA) is designed for retail, wholesale, distribution, service, and manufacturing businesses that receive regular payments from multiple customers. These advances are often used for business-enhancing projects, such as bulk stock purchases, opening new locations, or funding renovations. The MCA involves minimal paperwork and offers quick turnaround times, with funding available in as little as 48 hours. Repayments are aligned with business turnover, providing further flexibility.
Medical Practice Finance
Healthcare practitioners prioritize their patients, not complex finance. However, they need working capital to keep their practices thriving. The Merchant Capital Medical Practice Finance enables medical practitioners to accelerate growth and manage their practices like entrepreneurs. Practitioners can draw on their claims history from Discovery, Altron HealthTech, and Mediswitch, receiving funding in as little as 24 hours. Importantly, repayments will never exceed a practice’s income, making this a unique "Pay-As-You-Practice" financing option.
Legal Practice Finance
In the fast-paced legal world, where time is invaluable and growth opportunities often go untapped, Merchant Capital provides tailored working capital solutions for legal practitioners. South African legal practices have unique financial needs that are frequently overlooked. Merchant Capital offers repayments that align with turnover, with options for daily or weekly debit orders directly from the practice’s bank account. Turnaround times are approximately 72 hours due to the need for credit checks involving trust accounts and annual financials.
Stock Advance
The Merchant Capital Stock Advance is the first product of its kind in South Africa, specifically designed for retailers. This short-term funding solution includes a built-in payment holiday, allowing retailers to purchase stock, acquire small equipment, or relieve cash flow issues. Due to its structure, some clients use the stock advance instead of purchase order finance, invoice factoring, or bridging finance.
Responsible Lending
The SME funding market has rapidly expanded in South Africa, providing businesses with alternative ways to access growth capital. However, this swift growth necessitated the establishment of industry standards to protect the sector's reputation. The South African SME Finance Association (SASFA) has implemented a list of best practices to help buyers and small businesses evaluate potential lenders, ensuring ethical business practices. Merchant Capital is registered with SASFA and has procedures to prevent SMEs from overextending themselves, ensuring that the lending process is fruitful and sustainable.
Fixed Cost of Funding
Merchant Capital does not work with fluctuating interest rates. From day one, business owners know exactly how much they will be repaying, allowing for better financial planning and strategic use of funds.
The Bottom Line
The current economic climate poses challenges for SMEs, medical practitioners, and legal firms. It’s crucial for businesses to explore innovative and efficient ways to fuel growth and overcome financial obstacles. Merchant Capital’s working capital is not tied to interest rates, with costs clearly defined from the outset. Additionally, their offerings are tailored to specific industries, ensuring that funding meets the unique needs of each business. To discover how your business might benefit from one of Merchant Capital’s bespoke lending products, visit our loan calculator or contact us for more information. We look forward to empowering your business with short-term lending that delivers long-term value.
