Below is a list of commonly asked questions by clients
- Q: Will my relationship with my client be affected if I take up Invoice Factoring?
You will still continue to manage your relationship with your client even if you take up Invoice Factoring.
- Q: What is a Merchant Cash Advance?
The Merchant Cash Advance (MCA) is a financial solution that provides working capital to companies by providing immediate cash liquidity in exchange for a percentage of future credit or debit card sales.
- Q: How do I know if my company qualifies for Invoice Factoring?
Invoice Factoring allows you to convert your expected receivables into additional liquidity. This form of financing is most applicable where your company has a constant stream of receivables from reputable clients.
- Q: What companies or industries can make use of Machinery & Equipment Financing?
Machinery & Equipment Financing allows equipment resellers and vendors to providing financing for their customers. Examples of industries that typically make use of Machinery & Equipment Financing include resellers of office equipment such as copiers and IT products.
- Q: Can I take up a Hire Purchase for equipment located out of Singapore?
Yes, it is possible to take up a Hire Purchase for equipment located out of Singapore. This will be subjected to a risk assessment and approval.
- Q: Do I need to take up insurance for equipment under Hire Purchase?
Yes, insurance cover is mandatory for equipment under Hire Purchase. Our Relationship Manager will be able to advise you further on the insurance requirements.
- Q: What types of businesses qualify for an MCA?
An essential requirement to qualify for an MCA is that the businesses must accept credit or debit card payments. Examples of businesses that can benefit from an MCA include restaurants, bars, retailers, petrol kiosks, clinics and online shops.
- Q: Can I make partial repayments for my Hire Purchase?
Partial repayments are subject to approval and a small administrative fee may apply.
- Q: Who owns the asset that is being financed under a Hire Purchase?
The leasing company would have a legal charge (lien) over the asset until the full payment for the asset is received. Thereafter, the asset belongs to the Hirer.
- Q: How soon can I find out whether my application for an MCA has been approved?
Once the full set of application forms have been received, we can let you know the status of your MCA application in as quickly as 24 hours.
- Q: What is the size of the cash advance I can receive under an MCA?
Businesses will be assessed based on their strengths and average card sales to determine the cash advance amount it can qualify for.
- Q: How do I make the payments for the MCA?
An MCA is unlike a typical loan where there are interest payments to be made. Instead, payments for the MCA are based on a fixed percentage of credit or debit card transactions. The payment period is also flexible, allowing the payments to be made without incurring interest or penalty charges.
An agreed upon percentage of the credit card sales will be remitted to Monetium Credit. The remittance is done automatically and there is no need to further manage the MCA payments.
- Q: What is the quantum of payments that I will need to make for the MCA?
There is no fixed amount that needs to be paid every month. Under an MCA, a business pays an agreed upon percentage of the credit and/or debit card transactions it has done. In this way, the quantum a business pays increases with higher sales and reduces when transactions are lower.
- Q: Do I need to provide collateral to get the MCA?
Approval for the MCA is based on the strength of the business. There is no need for collateral to be provided, save for exceptions.
- Q: What entities qualify for financing from Monetium Credit?
Monetium Credit provides financial solutions for corporate entities. These include companies and business, including sole proprietors and partnerships.
- Q: What is the tenure of the financing available from Monetium Credit?
The length of the financing period can be customised to fit the customer’s need. This can range from a minimum period of 12 months and up to 60 months.
- Q: What documents do I need to submit with my application for financing?
- Accounting and Corporate Regulatory Authority (ACRA) Business Profile
- Audited accounts from the past two (2) years
- Bank statements from the past three (3) months
- Memorandum and Articles of Association
- Profit & Loss Statements
- Tenancy Agreement
- Q: How do I submit my Loan Application Form?
You may submit your form in the following ways:
Fax: +65 6737 5669
Mail: 220 Orchard Road, Midpoint Orchard 01-10, Singapore 238852
- Q: How soon would I be able to know the status of my application?
We will start to process your application once we receive it and we can typically get back to applicants with an answer as early as 24 hours.
- Q: Is there a maximum amount of financing that I can take from Monetium Credit?
The amount of financing will vary from application to application and is subject to an evaluation of the purpose of the financing and an assessment of the entity applying for the financing. Up to 4X of your monthly card sales.
Speak with us about your needs and we will be able to advise you further based on your requirements.
- Q: Are there any additional fees that need to be incurred over and above the interest rate charges?
Depending on the financial service, there may be additional fees, such as valuation fees, that may be incurred. Speak with our Relationship Manager on your needs and we will be able to advise you on a suitable solution and whether any additional fees are applicable. No upfront acceptance fee.
- Q: Are there any cancellation fees if I decide not to continue with the financing with Monetium Credit after I have accepted the letter of offer?
A cancellation fee may apply if you have already accepted the letter of offer. Speak with your Relationship Manager who will be able to advise you further.
- Q: How is asset-based financing different from a traditional bank loan?
Asset-based financing is provided as a medium-term loan for the acquisition of equipment. This differs from traditional bank loans that are generally revolving in nature and serve to augment working capital requirements.
- Q: What is the difference between a Lease and Hire Purchase?
Both a Lease and Hire Purchase arrangements allow you to spread the payments for an asset into the future instead of paying for it at the point of acquisition. This allows you to manage your cash flow and liquidity needs.
In the case of a Lease, the full value of the asset can be financed whereas under a Hire Purchase arrangement, there is a need for the Hirer to make a minimum downpayment of 10% of the asset value. In addition, under a Lease, the asset remains the property of the leasing company, unlike a Hire Purchase, where the asset belongs to the Hirer.
If you have further questions, please contact our Relationship Manager who will be able to advise on the most suitable financial solution based on your requirements.