Understanding Mercury Working Capital

What is Mercury Working Capital?

Mercury Working Capital are loans with competitive terms designed to help ecommerce businesses grow.

When should my company opt for a working capital loan?

A working capital loan is a great option for ecommerce businesses who need short-term financing to bridge the gap between outgoing expenses and incoming revenue. These loans are especially useful when gearing up for a busy season (like the holidays) and the funds can help cover expenses such as payroll, rent, inventory purchases, and other short-term liabilities that you might otherwise have trouble covering when dealing with cash flow fluctuations.

Do I qualify for Mercury Working Capital?

The best way to find out if you’re eligible for a working capital loan is by going through our quick eligibility questionnaire, but here are a couple requirements:

  • You need to be an ecommerce brand incorporated in the United States. Businesses that operate in California, Nevada, or Vermont are subject to additional eligibility requirements.
  • You need to be generating at least $250k of annual sales with at least 6 months of trading history.

How do repayments work?

Your term sheet will contain your complete repayment plan which breaks down your exact weekly payment amount and term length. Typically, terms range from 3-6 months in duration and you’ll work with our underwriting team to find a term length that suits your business’ needs.

Your first repayment will process 7 days after the funds are deposited into your account and then continue every 7 days after until the loan is completely paid off.

What are the fees?

There’s a simple, flat fee that’s determined upfront as part of the underwriting process and is a percentage of your total advance amount. That fee is then spread out evenly across all your weekly payments so you don’t have to pay it all at once.

How is Mercury Working Capital different from other funding options?

Mercury Working Capital prioritizes helping you clearly understand the cost of your capital and gives you a personal, ongoing relationship with ecomm specialists who can consult on maximizing your use of capital, credit, and banking — so you can grow and operate at your best.

  • Our fee structure is straightforward and competitive with a single, fixed fee that is spread evenly across each of your weekly repayments.
  • We offer fixed weekly payments, providing you with predictability and ease of forecasting compared to the daily remittances associated with revenue-based payback products. This fixed payment structure simplifies your financial planning and helps you maintain a steady cash flow
  • Our repayment terms do not penalize you for success. With a Merchant Cash Advance (MCA), if your brand generates revenue quickly, you’re expected to pay down your MCA and fee just as quickly. With the Mercury Working Capital term loan, your payments don't accelerate when your business is doing well, and your fee is reduced if you ever decide to repay early.
  • Our repayment terms do not penalize you for success. With a Merchant Cash Advance (MCA), if your brand generates revenue quickly, you’re expected to pay down your MCA and fee just as quickly. With the Mercury Working Capital term loan, your payments don't accelerate when your business is doing well, and your fee is reduced if you ever decide to repay early.
  • We do not require a personal guarantee or collateral to secure your loan.

Is a personal guarantee or collateral required?

No, we don’t require a personal guarantee or collateral to secure a Mercury Working Capital loan.

How do I apply for Mercury Working Capital?

The first step is to go through our short eligibility questionnaire. If you’re eligible, you’ll be asked to connect your company’s banking, commerce, and accounting platforms to share additional information with our underwriters as they review your application. There are no forms to fill out — just connect your accounts and we’ll take it from there.

What documents should I have ready when applying?

We’ll ask for some basic information about your business, but most of the detailed financial information is pulled automatically by connecting a few different platforms. Make sure to have login information handy for:

  • Your bank(s)
  • Your commerce platform(s) (e.g., Shopify, Amazon, Ebay, Woo, Magento, etc.)
  • Your accounting software (e.g., QuickBooks, Xero, NetSuite, etc.)

If you don’t see your platform listed, you can also upload the requested information manually.

Do I need a bank account from Mercury in order to receive Mercury Working Capital?

Yes. The funds from your Mercury Working Capital loan will be deposited into your bank account with Mercury.

If you’re not a Mercury customer already, you’ll be prompted to set up Mercury login credentials to check your eligibility for Mercury Working Capital. If you’re approved for a working capital loan, you’ll then need to set up a bank account with Mercury before funds are deposited. However, you don’t need to wait until that point to simplify your business finances – feel free to apply for a bank account with Mercury at any time here.

If I apply but then decide I don’t want to move forward, am I under any obligation?

There’s no obligation if you apply. If you’re approved for a working capital loan, you’ll have time to review your term sheet and agreement and ask any questions you might have so you can feel confident moving forward. If you decide not to move forward after reviewing the agreement, we completely understand.

How long does it take to apply and get funds?

Filling out the application takes about 10 minutes and you’ll typically hear back from our underwriting team in about 2-3 business days. From there, the terms and agreement review process is unique to each applicant, but a simple process can be as fast as a few days.

Once your agreement is signed, you will have access to your loan dashboard in your Mercury account within 1-2 business days. From there, you will be able to draw your loan funds immediately. Funds often arrive instantly in your account once drawn, but may take up to 48 hours. you can draw funds immediately.

Will applying impact my credit score?

No, your credit score is not impacted when you apply for Mercury Working Capital.

If I get an offer now, does it improve my chances of getting another offer later?

Each application is reviewed independently and is not affected by previous applications or loans.

If I already have an IO credit card, can I also apply for a working capital loan?

Yes. Having an IO credit card does not prevent you from using another Mercury credit product. Mercury Working Capital and IO work well together to help extend your runway.

More questions? Email our team of dedicated capital specialists at ecommerce@mercury.com.

 

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