A convenient alternative to bank loans, Clover Capital purchases a set dollar amount of a merchant’s future credit card receivables at a discount. In exchange, the merchant receives cash, making it simple to turn future sales into working capital with clear and easy payback terms. Merchants can use their cash advance to upgrade equipment, refresh their space, hire new employees and more - a key benefit as merchants work to adapt to their new normal.
The qualification process is much speedier than traditional loans - approvals typically take 1-2 business days.
Once approved, merchants will see working capital in their bank account in just 2-3 business days.
Payments are a fixed percentage of sales, not a fixed amount. This means payments are higher when sales are strong and lower when sales are slow.
Generous Qualification Criteria: Less stringent qualification guidelines than traditional bank SMB lending programs
Fast and Convenient: Basic application, minimal documentation needed and a simple payment process through withholding card receivables and single consolidated statements
High Approval Rates: Credit decision in <2 days from application and an 85% approval rate for merchants who meet minimum qualification requirements
Merchant Friendly Policies: No collateral, no personal guarantee, no fixed term, no fixed payment amount, no predatory fee structures and no aggressive collections tactics
Pay without Fear – Pay only based on sales produced through split funding of card receivables and experience no exposure to costly ACH overdraft fees by avoiding lockbox approach
Ease of Re-enrollment – Simple renewal processes to get additional capital once a consistent payment history has been established (usually within just 4–6 months)
Product Differentiation – Ability to offer a working capital options to clients who may not meet the standards for traditional bank lending products (for example: term loans, LOCs)
Risk-Free Insights – Ability to see whether a merchant can graduate to becoming a creditworthy bank borrower without taking any risk for potential renewal program
Merchant Friendly Program: Fast application process, simple documentation requirements, high approval rate and credit approval and funding within days
Merchant Retention: 80% of merchants renew their advance at least once and must remain on CardConnect processing over the payment period
To get started with clover capital, please contact your CBE
Merchant clicks the 'APPLY' link in their invitation email
Merchant completes contact page by creating a password
Merchant replies to SMS message to confirm identity
Merchant tells us how much and why they need the capital
Merchant accepts terms of credit check
Merchant's application is submitted
Merchant is presented with offers
Clover Capital in Real Life
Historical average has been $10–15K
Eligible amount based on 100–130% of avg monthly credit/debit card processing volume
Range is typically 1.10 to 1.29
Adjusted based on advance amount, merchant risk profile and expected payment period
Purchase Price x Factor Rate
Amount does not change regardless of whether merchant pays faster or slower than expected
Range is typically 10–20% to ensure merchant’s cash flow is not impaired
Recovered through split funding of submitted daily terminal batches
Expected Payment Period
Target range is typically 5–10 months
Variable payment term – fluctuates based on merchant’s actual vs. expected processing volumes
Is personal or business credit pulled?
Yes – if recent credit information isn't on file. However, soft credit pulls are only performed, as credit is one of the numerous factors used to make an approval or decline decision for Clover Capital.
Is Clover Capital only available to Clover merchants?
No – Clover Capital is simply the brand name given to our merchant cash advance program for SMBs.
Can merchants leverage Clover Capital if they already have an existing creditor obligation?
We prefer such existing obligations be paid down fully with the funds received through Clover Capital.
Can merchants have more than one Clover Capital advance?
Merchants can request an additional advance once they've made 60% of the payments on their current advance (for advance amounts >$5,000).
Please note, merchants cannot have multiple Clover Capital advances open under the same MID.