PayMongo Capital is a flexible financing solution designed to help merchants access working capital quickly and grow their business without the complexities of traditional loan applications. Through our trusted partners, GoTyme and Yield, PayMongo offers two distinct financing products: a revenue-based financing option and a revolving credit line. This article provides a comprehensive overview of each product's features, ideal use cases, and the simple process for loan repayment.
What is PayMongo Capital?
PayMongo Capital provides merchants with a financing solution to access working capital quickly. It is an alternative to traditional loans, designed to be flexible and straightforward. Through partnerships with financial providers like GoTyme and Yield, PayMongo Capital offers products tailored to suit a business's cash flow needs, whether for short-term projects or long-term growth.
Understanding Our Financing Products
PayMongo Capital offers two main financing products, each with unique features and benefits to match different business needs.
Flexible Financing (Powered by GoTyme)
This product is for merchants with fluctuating cash flow who need fast, frictionless access to working capital.
Key Features:
Revenue-based Repayment: You borrow a fixed amount and repay it automatically as a fixed percentage of your daily PayMongo sales. Repayment is seamless and directly linked to your transaction volume.
No Late Payment Fees: If your sales slow down, your repayments adjust accordingly, which means no fixed monthly due dates or late fees.
Quick Access: Get funds within 1–2 business days.
Simple Terms: The capital fee is fixed for the entire term of the loan, providing a clear and predictable cost.
Ideal Business Case:
Best for merchants with seasonal sales patterns or those looking for low-risk capital without rigid repayment terms.
Ideal for unlocking funds for short-term needs like inventory restocking or marketing campaigns.
Credit Line (Powered by Yield)
This product is for businesses that require flexible, repeatable access to capital for growth and operations.
Key Features:
Revolving Credit Access: Access a revolving credit line with flexible drawdowns. You can withdraw funds as needed, repay, and withdraw again.
Tailored Repayment: Offers flexible interest structures depending on usage and repayment terms.
Higher Credit Limits: Ideal for growing businesses with larger working capital needs.
Ideal Business Case:
Perfect for businesses that need on-demand funding to cover operational costs, supplier payments, or business expansion.
Suited for merchants who need to bridge cash flow gaps during payout cycles and maintain control over repayment schedules.
Getting Qualified for a Loan
PayMongo Capital eligibility is subject to review and approval from our partners. If you qualify, you'll receive an email notification confirming your eligibility for a loan. Your eligibility and the maximum loanable amount are evaluated based on your transactional activity with PayMongo. The more you regularly transact with PayMongo, the higher your likelihood of qualifying for PayMongo Capital.
After a notification has been sent, you can log in to your PayMongo dashboard, click on the Capital tab on the sidebar, where you may view your offer and accept the Flexible Financing by clicking on the “Accept Flexible Financing” button.
Loan Terms and Amounts
Loan Amount: The specific loan amount and terms are determined during the application process and are based on your business's eligibility and transaction history and reviewed by our partner's credit risk framework.
Capital Fee: The capital fee is a fixed percentage that is communicated to you upfront and remains constant for the entire term of your loan.
Disbursement: Once approved, funds are disbursed to your nominated bank account within 1–2 business days, providing quick access to the capital you need.
How to Repay Your PayMongo Capital Loan
Repaying your loan is a simple and automatic process.
Automatic Repayment: For the Flexible Financing product (GoTyme), repayment is revenue-based. PayMongo automatically deducts a fixed percentage of your daily PayMongo sales until the loan is fully paid.
No Manual Action Required: You do not need to manually process payments or worry about due dates. The repayment is seamlessly integrated with your PayMongo transactions.
For Credit Line (Yield): Repayment terms are flexible and will be detailed in your agreement.
Notes, Tips, Warnings/Cautions, Best Practices
Tip: PayMongo Capital is an invitation-only feature for select merchants. Ensure your business is in good standing and has a consistent transaction history to be considered.
Best Practice: Before applying, carefully evaluate your business's financial needs to determine whether flexible financing or a revolving credit line is the best fit for your cash flow and growth strategy.
Note: The PayMongo Capital partnerships with GoTyme and Yield provide merchants with a choice of flexible financing products that are specifically designed for the needs of modern businesses. For any questions, you can contact
[email protected].