ORIX Leasing Singapore Limited
Financial Services

Merchant Cash Advance

Working Capital Loans

 

What is a Merchant Cash Advance?

The Merchant Cash Advance (MCA) addresses the working capital needs of businesses that accept payments by credit and/or debit cards. With the MCA, businesses such as retailers, restaurants and online merchants can get immediate funds based on their future credit or debit card receivables.

ORIX Leasing Singapore Limited would purchase the future credit and/or debit card receipts from a business with an upfront cash payment, injecting liquidity into the business to meet any existing cash requirements.

How does it work?

Upon approval of the MCA application, the business would receive a lump sum cash payment in exchange for a sum of its future credit and/or debit card transactions. This cash injection can be used for any purpose.

An agreed upon percentage of the card transactions will be remitted to ORIX Leasing Singapore Limited whenever the credit/debit card sales are settled.

The fixed percentage of the card sales transactions would then go to ORIX Leasing Singapore Limited as payments whilst credit or debit card sales are made in the normal course of business.

Advantage of the Merchant Cash Advance

As payments are based on a fixed percentage of the sales transactions instead of a fixed amount each month, this closely aligns the MCA payments to the trading volume of the business.

When card transactions are high, a higher amount is remitted to ORIX Leasing Singapore Limited. When business is a bit slower, the amount remitted is correspondingly reduced.

As payments take place automatically via an arrangement between ORIX Leasing Singapore Limited and the card processor, the possibility of late fees and penalties is eliminated. This provides the business with a hassle-free payment process and additional peace of mind.

The application for an MCA is fast and straight-forward. Assessment of eligibility is based on the strength of the business. Unlike a bank loan, no collateral is required and the payment term is not fixed. What you pay is mostly proportionate to your credit and/or debit card sales.

Credit Cards Bank Loan MCA
High cash quantum
Unrestricted fund usage  
Flexible payment term without incurring additional interest charges    
Alignment of amount debited with card sales    
No collateral required  
Fast approval process    
No late fees    

Who stands to benefit?

Merchants such as restaurants, bars, retailers, petrol kiosks, clinics, online shops and other businesses that accepts payment via credit and/or debit cards will benefit from the MCA while enjoying the flexible payment terms aligned to their business flows.

 

At a Glance

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