Use cases

Merchant use cases

A growing retailer funding inventory ahead of peak season. A home goods retailer processing around PHP 1.2M per month on PayMongo needs PHP 300,000 to buy stock for the Christmas rush. They accept a Capital offer with a 10% sweep rate. For the next eight to ten weeks, 10% of each day's settlement goes to the lender. Slow weekdays cost nothing extra; strong weekend sales close out the loan faster.

A café chain opening a second branch. A four-location café group processes around PHP 600,000 per month per location. They accept a Capital loan of PHP 400,000 to fit out a fifth branch. Because sweep is a percentage of sales across all locations under the same merchant account, the loan repays smoothly regardless of which branch is driving revenue that week.

A seasonal e-commerce seller bridging a cash gap. A swimwear brand has low winter sales but strong summer sales. They accept a smaller Capital advance in February, knowing the 12% sweep will collect lightly through winter and finish quickly in May–August. They pay no extra fee for the slow months — the flat-fee structure means total cost is fixed at offer time.

Lender use cases

A rural bank expanding its SME lending footprint without opening branches. A Visayas-based rural bank onboards to Capital to originate micro-working-capital loans to sari-sari stores and small retailers already accepting QR Ph and cards through PayMongo. Because transaction history is already on the platform, the bank can underwrite digitally, disburse via wallet, and collect via automated sweep — no field visits, no manual collections.

A fintech lender scaling from pilot to volume. A fintech that previously lent via manual spreadsheets onboards to Capital and replaces its internal underwriting with programmatic offer creation against the eligible-merchants API. Within one quarter, they increase monthly originations by 5x without adding ops headcount.

A commercial bank piloting a new digital SME product. A Tier 1 bank uses Capital as its distribution and servicing layer for a new digital SME lending product. PayMongo handles merchant acquisition, data, and collection; the bank holds the loan on its balance sheet and manages risk. The bank launches the product in under three months rather than the twelve months a ground-up build would take.