Frequently Asked Questions

What is an Merchant Cash Advance (MCA)?

The Merchant Cash Advance ("MCA") product is brand new to Hong Kong and Singapore. It is an innovative but simple funding solution for businesses of all sizes. For all businesses that accept credit and debit card payments, the MCA product provides the flexibility to sell future card sales, and to receive cash today. You can now use an MCA whenever you need cash for your business for any reason, including: working capital; the cost of renovation work or expansion; the cost of purchasing additional inventory or equipment; advertising or marketing costs; simply to pay bills or anything else you may need the cash for – now you have a way to get it quickly and easily.

How does the MCA work?

MCA is the newest source of cash for your business. More importantly, MCA is not a loan product. So, there is no fixed daily or monthly payment amounts, and there is no fixed payment terms. We provide a cash advance to your business and in return you sell us a fixed amount of your future credit and debit card transactions. We then take a fixed percentage of your daily card sales directly from your card processing bank. So the amount paid to GMF will be based on your actual daily credit and debit card sales. It is very flexible and convenient, and completely aligned to your business.

How do I know if I can qualify for an MCA?

It is simple. If your business accepts Visa/Mastercard payments, then you can apply for an MCA.

What can I use the funds for?

Unlike a bank, we have no restrictions on the merchant's use of funds.  The funds can be used for renovations, purchases of equipment, machinery or inventory, advertising campaigns, payroll, vacations, debt consolidation, expansion or even buying out a business partner. Whatever you need the cash for, GMF is there for your business needs.

How quickly can I receive the cash?

Funds can be received as quickly as 3 days.

Is there any penalty fee if I pay my MCA early?

The MCA product is not a loan. There is no fixed daily or monthly payment amounts or payment terms. You may make early payment without any penalty / handling charge.

Will I receive a regular statement?

Yes. We will typically send this to you at the end of each month.

Who should I speak to if I have any more questions?

Simply call the GMF Hotline at +(852) 2592 6600 and our team will be happy to answer any questions you may have, or to talk more about the MCA product.

How much cash can I qualify for?

The amount you can qualify for depends on your monthly card sales. We need 6 months of card statements to review and determine the monthly average.  GMF will then set the maximum cash amount based on that average, as well as the percentage of sales your business does on cards versus cash.  If your business is seasonal, or has high volatility within the 6 months of credit card volumes, we may ask to see credit card statements going back longer than 6 months.

Is MCA considered a loan?

No. It is a "Sale and Purchase" transaction. You "sell" your future credit and debit card sales to GMF, and we "buy" these future sales at a discounted price, and this price is paid to you in the form of the Merchant Cash Advance.

The MCA is very similar to a traditional factoring business, except that instead of providing cash in return for existing trade receivables, GMF provides cash in return for future card receivables.

The MCA has No fixed payment term, No fixed daily, weekly or monthly payment amounts, No deposits needed, No collateral needed.

What happens if my credit card sales go up or down? Do I have to pay a penalty if my credit card sales fall?

Since the MCA is not a loan, there is no fixed payment terms.  After you receive your cash, GMF will take a pre-agreed percentage of your daily card sales. GMF only gets paid based on your actual card sales. As your daily card sales go up or down, so does the amount paid to GMF. No extra fee will be imposed if your card sales decrease.

Is it possible to refinance or renew my MCA?

Yes, when you have paid at least 85% of your MCA balance, you can become eligible for another MCA. Simply call GMF or your sales representative for more information.

When you receive the cash for a second MCA (or more), GMF will pay off any remaining balance on the existing MCA, and the next MCA continues.

Can I have more than one MCA outstanding at the same time?

No, it is not usually possible to have more than one MCA outstanding at the same time. However, a new MCA (renewal) can be issued to replace the existing MCA.

A merchant can become eligible for a second MCA (or more) once the existing transaction is at least 85% paid.

Are there other countries that use the MCA product?

Yes, the MCA product is well established for up to 10 years already in other markets such as the United States, Canada and the UK. GMF has simply taken the well understood MCA product, and adapted it for the Asia-Pacific region. Thousands of thousands of small businesses around the world have benefited from the MCA product. Billions of dollars have been advanced to businesses just like yours!

How long will it take me to pay my MCA?

Since GMF will get paid a fixed pre-agreed percentage of your daily card sales, the payment period depends entirely on your card sales. GMF will provide you with an estimate of how long the payment period will be, based on your card sales history.

Currently, all MCA transactions are targeted to last for 3 - 6 months.

What is Factoring?

Factoring is the sale of receivables. It is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor, i.e., GMF) at a discount. Factoring allows you to convert an invoice issued with terms granted to a “cash on delivery basis”, or COD. Once the invoice is sold to GMF, a discounted amount is accepted by you as payment.

Does GMF buy accounts receivable?

Yes! We do NOT lend money; we simply purchase the financial rights of your invoices at the time of billing.

What type of receivables is acceptable?

Any valid invoice already performed and has not been pledged to another entity.

How does GMF collect payments?

The same way you would collect: you invoice your customer for the service you performed. Then, you instruct your customer to make full payment to a designated bank account by invoice due date.

What will my customers think?

Receivables-based financing is used by many of the largest corporations in the world to improve cash flow, support growth, and increase profits. Many of your customers may use Factoring service themselves and others have become familiar with it through other vendors. The fact that you qualify for this financing makes a strong positive statement.

What are the requirements?

Your business established for over 1 year and you have relationship with your buyers for over 6 months.

Does GMF factor invoice with Cash On Delivery (COD) as payment term?

Yes, for local buyers, we can finance your production period for a maximum of 30 days before the invoice billing date.

How do you charge your fee?

We get our fee when the invoice is paid. We subtract our fee from the 'Reserve' amount after the invoice is fully paid. Then we refund the balance of the Reserve to you.

What is the smallest invoice GMF will accept?

We have no minimum!

What is the largest invoice GMF will accept?

We have no maximum! We provide funds to businesses of any size.

Do I have to factor all of my invoices?

No, you can factor as few as one or as many as all of your customers' invoices. You can also factor partial amount of your invoice.

What happens if my customer does not pay?

In the event that GMF does not receive the full amount of Receivables from your customer on or before the Due Date, GMF may seek recourse against you. Where the Reserve is insufficient for the deduction of the outstanding receivables due to GMF, including but not limited to the Factor, the Administration Fee and the Late Fee, the outstanding amount shall immediately be paid by you.

Will Factoring be good for my business?

Yes, as long as you wisely use the additional time and cash derived from Factoring, as Factoring provides your business immediate cash flow and shorten the cash conversion cycles. Factoring can be quite beneficial if you use it as a means to increase your sales, improve your credit, take advantage of early payment discounts or focus on managing your business. In addition, Factoring has no impact on your businesses’ credit profile as it is not a loan.

How do I get started?

It's simple. Call us at +(852) 2592 6611 or complete our online application form and we contact you promptly to discuss the next step.