Capital

What Capital is

PayMongo Capital is a platform that connects eligible merchants on PayMongo with regulated partner lenders for revenue-based working capital financing. Merchants see offers in their Dashboard; partner lenders create those offers via API using consented transaction data; PayMongo automates disbursement and repayment end-to-end.

Capital is designed around three principles:

• Cash-flow-friendly repayment. Sweeping a percentage of daily settlement means slow weeks don't become missed payments — the loan simply takes longer to close out. Merchants never face a fixed monthly bill larger than their sales that month.
• Data-backed underwriting. Because settlement already flows through PayMongo, lenders can underwrite against actual transaction history (volumes, patterns, seasonality, channel mix) rather than self-reported financials. This widens the pool of businesses that can access credit.
• Platform-operated servicing. PayMongo handles disbursement, sweep collection, remittance, reconciliation, and merchant-facing servicing. Lenders keep the credit decision and the economics; PayMongo runs the pipes.

How the end-to-end lifecycle works

sequenceDiagram
    actor Lender
    participant System as Capital Platform
    actor Account

    Lender->>System: Create offer template

    Lender->>System: Invite account to offer
    System-->>Account: Email notification sent

    Account->>System: Browse Capital Dashboard

    System-->>Account: Loan Offer

    Account->>System: Accept offer & submit application
    System-->>Account: Application created

    Lender->>System: Review & approve application
    System-->>Account: Funds disbursed to wallet

    loop Until loan fully repaid
        System->>Lender: Daily repayment collected from merchant sales
    end

    System-->>Account: Loan fully repaid
    System-->>Lender: Contract closed

The full Capital lifecycle, across all parties, looks like this:

1. Lender onboarding. A prospective lender applies via Lender Portal. PayMongo Capital Ops reviews licensing, KYC/KYB, capital adequacy, and risk posture. On approval, the lender receives API credentials and access to the anonymized transaction data feed.
2. Data access. The lender queries the daily anonymized transaction manifest to identify merchant segments. Each entry shows aggregated settled volume, channel mix, and other underwriting signals — no merchant PII.
3. Offer creation. The lender creates an offer template (POST /v1/capitals/lenders/offers) defining the product parameters: loan type, amount range, fee structure, repayment rate, and term range. The offer starts in active status immediately.
4. Account invitation. The lender invites specific accounts to the offer. Invited accounts see the offer in Dashboard → Capital with the offer's terms, fee disclosures, and a data-sharing consent screen.
5. Merchant application. The merchant reviews the offer and submits an application, choosing a principal amount within the offer's range and their desired term, attaching supporting documents. The application starts in submitted state.
6. Lender review and approval. The lender retrieves the application with supporting documents, reviews it, and approves with a confirmed amount. On approval, PayMongo creates a Contract and Loan, and triggers disbursement.
7. Disbursement. PayMongo transfers the approved amount from the lender's funding account to the merchant's PayMongo wallet.
8. Repayment collection. Starting the next settlement cycle, PayMongo collects repayments from the merchant's settled transaction proceeds at the configured repayment rate, and remits to the lender. Merchants can also make manual repayments via Dashboard → Capital.
9. Monitoring. Both lender and merchant get real-time visibility: lenders via the Lender Portal, the applications and repayments APIs, and Capital event webhooks; merchants via Dashboard → Capital.
10. Completion. When the outstanding principal, interest, and DST balances all reach zero, the loan moves to repaid and collection stops. When all loans under a contract are repaid, the contract moves to completed.