Retail Capital

Introduction

Retail Capital is a South African funder that provides working capital advances to small and medium businesses, with a repayment model that flexes to your turnover. Instead of a fixed monthly instalment, you repay a share of your takings, so repayments rise and fall with how your business is actually doing.

Who it suits

This suits a business with regular card or bank turnover, such as a retailer, restaurant or service business, that wants funding whose repayments breathe with its sales rather than a rigid amount due every month.

What you get

  • A working capital advance based on your turnover history.
  • Repayments that flex with your daily or monthly takings.
  • A fast application aimed at businesses banks often turn away.
  • Funding without giving up equity in your business.

How the cost works

The cost is quoted upfront as a fixed cost of capital rather than a moving interest rate, so you know the total before you accept. The amount you qualify for is based on your turnover.

Our take

Retail Capital’s turnover-linked repayment is genuinely useful for a business with uneven months, because it eases the pressure when trade is slow. If your income swings with the season, it is worth a look. Compare it against fixed working capital loans and the wider funding range to see which repayment style suits you.

See if you qualify

Related: Working capital loans  ·  Cash flow  ·  All funding options

Main Features
  • Type of funding – The company offers cash advance. The funding is unrestricted which means it can be used for whatever your business needs..
  • Qualifying criteria – To apply for the cash advance, your business needs to have a turnover exceeding R50 000-R5 million per month, a trade history of at least three months, and a minimum of six months business ownership. Their business funding is unrestricted, which means there is no limit to how you can make use of the funds in your business.
  • Payment terms – Retail Capital offers flexible repayment terms. Business owners can select to repay a  fixed amount or opt for a percentage of turnover to be collected. Payments can be made on daily or weekly basis. Fees are calculated based on your turnover, the duration of the loan and how often you would like to make payments. For Asset Finance the repayment period ranges between 12 and 60 months.
  • Application process – To apply, register online and create a profile, or alternatively, you can book an appointment. There is very little documentation required and in some instances the full application only requires bank statements, 4 click-application process and same day disbursements. Documentation needed is a copy of the business owner(s) ID(s), recent six months bank statements, the title deed or latest bond or rental statement for your business, and a recent main supplier statement
Pricing

Repayment premiums are based on turnover, the duration of the loan and how often you want to make payments. Payment options are flexible – from daily, weekly to monthly payments.

For the Asset Finance, you can choose the financing period; you can get tax benefits including, either claim the interest and depreciation allowances or the rental expense over the term of the agreement.

Business owners can opt to settle early and get a discount on their fee balance.

Pros and Cons

Pros

Flexible repayment options.
Discount to the balance of your fees pro-rata when you settle early
Tax benefits when you take out an asset finance loan.

Cons

Shorter Loan Terms
Limited Loan Products
FAQs

Retail Capital offers funding solutions to a wide range of established South African businesses but may have specific criteria for industries or business models.

The required documents may vary depending on the loan amount and type but generally include basic business information, financial statements, and ownership details.

Retail Capital prides itself on a fast and efficient application process. Approval times can vary based on the complexity of the application, but they often aim to provide a decision within a few business days.

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