General
How do you determine who qualifies for an offer?
Eligibility is based on your transaction history with PayMongo. For this pilot, a small set of eligible merchants will receive an email and a dashboard notification if they have an available offer.
How does repayment work?
Repayment is made through a percentage of your sales (the gross amount of each payment) via PayMongo. Given this, the repayment of the advance payout could be fast or could take longer depending on your sales performance.
Do I have to pay interest?
Instead of an interest rate, you will pay an all-in convenience fee on top of the principal amount of the advance payout. You won’t pay any interest or additional fees on top of this fee.
Can I request a different offer amount?
For this pilot, you can choose from three different offer amounts. If you would like to inquire about a custom amount that you may be eligible for, please contact advancepayout@paymongo.com
When do I need to repay the convenience fee?
You’ll automatically repay both the advance payout and the convenience fee through a percentage of your sales until the total amount owed is repaid. The convenience fee is not charged up-front.
After I accept an offer, how quickly will I get my funds?
After being approved, you’ll see the funds in your next payout. We will disburse the funds to the bank account you have registered on our platform.
What happens when my offer expires?
Your offer is available for 15 days. After that, your business is automatically re-evaluated to see if you’re eligible for an additional offer. You'll receive an email and dashboard notification if you qualify for another offer.
Am I eligible for a new offer while I’m repaying down an existing advance payout?
For this pilot, you have to fully repay an existing advance payout before being eligible for another offer. You'll receive an email and dashboard notification if you qualify for another offer.
Can I pay down my advance payout early?
Yes, you can pay down the total amount owed in full at any point. There are no additional fees for paying the full amount early. Please contact advancepayout@paymongo.com if you’re interested in early repayment.
Will paying down my advance payout early qualify me for a new offer?
After you pay down your advance payout, you’ll automatically be evaluated for a new offer. You'll receive an email and dashboard notification if you qualify for another offer.
What happens if my sales slow down?
As previously mentioned, repayments are made through a percentage of your sales. Your pace and progress in repaying the advance payout will depend on the sales performance of your business. Your repayments will be made automatically by taking a fraction of each of your sales. As long as you meet the minimum repayment target by the end of each month, your subsequent minimum repayment amounts, percentage of sales allocation, and automatic repayment system will stay the same. These details are indicated in the terms of each option, which we will send to your e-mail along with a notice of your eligibility for an advance payout.
Minimum repayments
What is a minimum repayment?
A minimum repayment is the minimum amount that you’re expected to repay from the day the advance payout was disbursed to the same day in the next calendar month, and for the succeeding periods after. Meeting the minimum repayment amount every month guarantees that you will stay on track to fully repay the advance payout by the end of the term.
Example: A merchant is offered an advance payout of Php 50,000 and a convenience fee of Php 2,500 payable in 3 months. The total amount owed is Php 52,500. The Php 50,000 advance payout is disbursed to the merchant's bank account by July 14. By August 14, the minimum repayment is Php 17,500 meaning the merchant should have repaid at least 1/3 of the amount owed. By September 14, the minimum repayment is Php 35,000 meaning the merchant should have repaid at least 2/3 of the amount owed. By October 14 and the end of the term, the merchant should have repaid Php 52,500 or the total amount owed.
If the total amount that you repay through automatic sales deductions within a monthly repayment period falls below this requirement, we will remind you at the end of the given monthly period to repay the shortfall.
We will also update you with advance payout reports so that you can monitor your progress in meeting your minimum repayment requirement You can view your minimum repayment amount in your advance payout agreements or in each advance payout report.
How do I make my minimum repayment?
If your payments deducted from sales cover the minimum repayment requirement for the monthly period, no action will be taken.
If you have not met the minimum repayment amount by the end of the monthly repayment period, we'll request you to repay the shortfall through two options:
- Option 1: allocating 100% of your sales (net of PayMongo fees) towards repaying the shortfall. Your entire sales will go towards repaying the shortfall. You will receive your next payout once you have processed enough payments to settle your shortfall from the last monthly repayment period. Once you have repaid the shortfall, we will automatically revert your % of sales allocated toward repayment back to its original value based on your offer.
- Option 2: making a direct deposit to PayMongo's bank account. If you choose to pay your shortfall by making a direct bank deposit, you will be given until your next payout date to notify us and present a proof of your deposit. If you are not able to send a proof of deposit by the next payout date, we will apply Option 1 and dedicate the entirety of your sales towards repaying your shortfall.
What happens if I can’t make a minimum repayment on time?
Reach out to advancepayout@paymongo.com and we’ll work with you to help you meet your minimum repayment.
Can I get ahead on my minimum repayment schedule?
Yes, exceeding your minimum repayment schedule would lead to lower remaining balance for the rest of the advance payout term. You may also opt to repay the entire advance payout early if your sales performance permits you to do so. (see Example 2).
Examples scenarios
Here are three examples to help you understand how the minimum repayment process works.
Example 1: Merchant pays above minimum repayment amount at the end of the current advance payout repayment period
Strong sales enable merchants to exceed their minimum repayments and avoid shortfalls at the end of a monthly period.
Given the advance payout terms below, the merchant should repay Php 17,500.00 monthly for three months.
At the end of Month 1, the merchant should have repaid a minimum of Php 17,500.00, but exceeded this target by repaying Php 20,000.00. Since they have exceeded the minimum repayment by Month 1, the merchant can still pay the advance payout on-time even with a slight dip in sales for Month 2 and Month 3.
At the end of Month 2, the merchant should have repaid a minimum of Php 35,000.00. Though their sales have dipped, they still managed to repay Php 36,250.00 by the end of Month 2; they are still on-track and don't have any shortfall in repayment. At the end of Month 3, they end up fully repaying the total amount owed.
Example 2: Merchant pays well above minimum repayment amount and has the capacity to repay early
Merchants with strong sales can also opt for early repayment.
Given the advance payout terms below, the merchant should repay Php 17,500.00 monthly for three months.
At the end of Month 1, the merchant should have repaid a minimum of Php 17,500.00, but exceeded this target by repaying Php 40,000.00. Since they have exceeded the minimum repayment by Month 1, the merchant can still pay the advance payout on-time even with a slight dip in sales for Month 2 and Month 3.
However, the merchant can also fully repay by Month 2 if they have strong sales and their repayments amount to the entire remaining balance of Php 12,500.00.
Example 3: Merchant does not meet their minimum repayment amount at the end of the current advance payout repayment period
Paying below the minimum repayment amount for a given period leads to shortfalls that the merchant has to settle.
Given the advance payout terms below, the merchant should repay Php 17,500.00 monthly for three months.
At the end of Month 1, the merchant should have repaid a minimum of Php 17,500.00 but only manages to repay Php 12,500.00. This means that the merchant has a shortfall of Php 5,000.00 in Month 1. For Month 2, the first Php 5,000.00 of their monthly repayment goes towards repaying the shortfall in Month 1 (so that they meet the minimum repayment for Month 1), and the remaining Php 15,000.00 goes towards repaying in Month 2.
At the end of Month 2, the merchant should have repaid a minimum of Php 35,000.00 but only manages to repay Php 32,500.00. This means that the merchant has a shortfall of Php 2,500.00 in Month 2. For Month 3, the first Php 2,500.00 of their monthly repayment goes towards repaying the shortfall (so that they meet the minimum repayment at the end of Month 2), and Php 17,500.00 goes towards repaying the remaining balance.